SatoshiLibrary

Cryptocurrency for Beginners

Genesis Mining Review: Is it still Profitable in 2024?

3 min read
I realized that the cryptocurrency market was entering a bubble and that it would crash at some point.I wanted to see if cryptocurrency mining was as profitable as so many youtubers where claiming.

Cloud Mining : Genesis Mining Review

This my unbiased, brutally honest Genesis Mining review. I will review the company, user experience, mining contracts, costs, payouts and ROI.  This review is not being endorsed by Genesis Mining or any other competing company. I have personally begun mining with Genesis mining between 2017 – 2018 . This is my personal experience and I hope that it will be useful to those who are considering cloud mining.

 

 Genesis Mining Review

In August 2017, I purchased $63 dollars worth of mining power.

Fast forward 12 months later, I earned 0.0371 ETH and 0.067 ZEC.

The users “buys” mining power (or Hashpower) and get any profits after the costs and maintenance fees has been deducted.However, the profit is extremely insignificant compared to what other influencers would have you believe.

ESPECIALLY, if you are in a bear market.

I believe that the profits other influencers have shown you are based of referral payments.

I hardly made a few dollars in profit.

So this sustainable passive income narrative going around is untrue.

The true reason I was able to 10x my genesis mining investment is because I’m actually pretty decent at crypto trading.

So, I am personally not a fan and think that trading or simply holding generates a higher ROI.

While some may say that cloud mining is a great way to get your feet wet into mining, I think that there are more profitable investing solutions such as staking, crypto air drops , copy trading or even swing trading.

 

The advantages of Cloud mining

Electricity

Mining requires a lot of electricity and you may see your power costs soar overnight..

Cloud mining energy fees are usually lower that what you would have been paying as you will be sharing.

Hardware Costs

The most efficient miners are usually the most expensive.

The miner also has to pay for the shipping costs.

Additional Costs

Miners may need pay for customs, additional equipment to set up the miners (e.g power supplies) and maintenance fees in case of hardware failures.

Time

Not only does shipping take 2-6 weeks, and even months in some cases, the miners also need to be set up and configured.

Cloud mining companies take care of all the expenses to offer a pure profit solution for their customers

Buying a Mining Contract

Choosing a contract?

Genesis Mining has a super nice pricing page but in once you click on it with product description , you will see the various packages to mine (see image below).

 

Actually buying the mining contract

Once you’re logged in, you will be directed to a dumbed down version of the contract page.

In my opinion, their pricing page should have the slide feature (as shown below) as it allows you to decide exactly how much you want to spend.

I also like the fact that you can purchase with credit cards which are more practical than BTC.

Checking out

I really like the fact that they require very basic information and don’t require proof-of-identity like exchanges.

Is Genesis Mining profitable?

In August 2017, I purchased $63 dollars worth of mining power.

Fast forward 12 months later, I earned 0.0371 ETH and 0.067 ZEC.

Due to the 2018 bear market, at the time of writing, if I sold these coins immediately on the cryptocurrency exchanges for fiat, then I would have definitely made a loss.

However, I consider cryptocurrency mining as bet on the future value of the coins which is why I prefer to hold onto my coins.

Did I make any profit?

The only reason I made profit was because I am a trader.

Strategy

In my case, I realized after that Bitcoin and Ethereum that they were not profitable so I moved onto mining another coin.

Why did I choose Genesis Mining?

I felt the platform was more user friendly.
At the time, ASIC Miners prices were just too ridiculous and I wasn’t ready to risk $3600 in bitcoin mining machines.

I realized that the cryptocurrency market was entering a bubble and that it would crash at some point.I wanted to see if cryptocurrency mining was as profitable as so many youtubers where claiming.

The idea of passive income through mining without all the tech was tempting.

Plus, they accepted Visa and Mastercard.
The cryptocurrency exchanges were taking forever to approve my accounts.

I had convinced myself that it was cheaper to mine altcoins than buying them.

 

Who is Genesis Mining for

  • Future Miners: Those who want to become more serious cryptocurrency miners in the future.
  • Gamblers: The cryptocurrency market is extremely volatile and investing these kinds of websites, no matter how legitimate is very risky.
  • Can afford to lose the money: Those who invest too high sums tend to be emotionally attached which prevents them from thinking rationally when the market tanks or soars.

Who is Genesis Mining not for

  • Those interested in making consistent profit.
  • Serious investors.
  • Those who can not afford to lose the funds.
  • Those who plan on putting money into the website and forgetting about it it.
  • If you are not interesting in learning how cryptocurrency mining works.

 

Is Genesis Mining Legit

According to their website, they have 2 million users ( in 2018).

Iceland Bitcoin Mining

Genesis Mining is a registered company in the British Virgin Island has mining facilities around the world.

It carries out the majority of its most mining operations in Iceland and has several videos on youtube showing their operations.

According to their website, they have mining facilities all around the world.

Fun Facts:

Genesis Mining use GPU miners rather than Asics which is why users can easily switch coins.
They consider their miners the “swiss army knives” of blockchain.

Genesis Mining vs Hashflare

Hashflare is the second most popular cloud mining platform.

The difference is that Hashflare chooses the most profitable coins to mine for the customer.

The main disadvantage of this is that the user needs to trust that Hashflare will choose the most profitable coins to mine for them.

On one hand, this is great for newbies.But, in the long run you might want more control over which coins to mine as you knowledge increases.

With Genesis Mining, the user gets to choose which coins they want to mine.

  • They do have an Auto feature which chooses the coins for the user.
  • However, once you become more familiar with the various cryptocurrencies, you can choose your own cryptocoins.
  • You can also distribute your hashpower to several cryptocoins.

In case you’re wondering how they can do this, it is because they use GPU miners which are more flexible than ASIC Miners.

In a recent youtube video, Genesis Mining showed off its state-of-the-art GPU Miners.

 

Payouts

  1. Hashflare start mining immediately whereas Genesis Mining has a 30 day waiting period if the user buy the mining contract with a credit card.
  2. Genesis Mining automatically payout.

 

Business Ethics

Genesis Mining definitely outshines Hashflare in this department

Hashflare changes all the lifetime contracts to two years whereas Genesis Mining reassures users that they won’t be changing this.

  • Dealing with Bear Markets

Everyone was worried that Genesis Mining would eventually stop their mining contracts, because their privacy policy states that they are entitled to stop the mining contract if a contracts goes beyond 90 days without making any profit.

Instead users were shocked when Hashflare decided to switch off their bitcoin miners.

Fortunately, for the customers, Hashlare resumed their mining contracts after a few days.

But, they locked the customer funds until they provided verification.

 

User Verification

Hashflare prevented me from withdrawing my earning unless I filled out their user verification form which included scanned photo ID and selfie with my ID card.

I find this practice very invasive compared to Genesis Mining which requires just your credit card information and cryptowallet address to receive your crypto.

 

Maintenance and Electricity Fees

 

Minimum withdrawals

Hashflare appears to have a lower minimum payout compared to Genesis Mining.

As cryptocurrencies are decentralized, transaction fees depend on the network (blockchain).

 

How to compare profitability for Cloudminers?

Profit = Income – Expenses

  1. Go to CoinWarz.com.
  2. Choose the coin you would like to mine.
  3. Set all Power values to zero (Cloudmining ..duh  )
  4. Deduct Electricity maintenance.
  5. The result is the profit your will receive.

Final Thoughts

Even if cloud mining calculators may say a contract is profitable, the market can change at any time preventing you from selling your coins for a good price until years.

I believe the reason I was able to make profit with such low mining power is because I switched to less popular coins.

Mining is definitely a fun hobby for crypto-enthusiats but not a way to to earn serious income.

I hope you enjoyed my genesis mining review.

Remember that it is sometimes cheaper as well as less riskier just to buy cryptocurrencies and HODL instead of mining.

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *