All About BTC, LTC, ETH mining as well as other alternative crypto currencies
Yesterday we’ve told you about the new announcement coming from Bitmain about their acquisition of the Snowbal.io service that is now called Hashnest and about their plan to start selling cloud mining hashrate via the new platform. They have already started selling the initial offering of 4 Petahashes worth of hashrate powered by AntMiner Bitcoin ASIC miners today and we have already purchased 100 GHS to try out the service. Initially the price per GHS was supposed to be 0.0016 BTC, but it has apparently been lowered to 0.00135 BTC making the offer more attractive even though the maintenance fee is still at about 37 percent which is a bit higher than we would want to see it. But since the maintenance fee is quoted in USD per GHS with increase of the Bitcoin price the fee percentage should get down to a more acceptable level. With the new price per GHS and the current maintenance fee with a more moderate 10% average increase of the Bitcoin network hashrate you can expect to see a ROI in less than 8 months, not that great, but not too bad either, especially compared to some other recently launched alternatives that we’ve covered. So while not great profitability wise, that offer does not seem that bad either compared to many of the available alternatives and even compared to the initially announced higher price per GHS. The hashrate you purchase will be valid and mining for as long as the mined coins are more than the fees collected by the service, so the downside could be if the hashrate you purchase becomes unprofitable in less than 8 months.
We have purchased 100 GHS for 0.135 BTC just to test out the service and to give out some firsthand experience. It seems that Hashnest does need to do some more translation in English and improve the translation of some of the already translated in English texts. Also the statistics you get is not very detailed and the graphs for the hashrate are not for your own hashrate, but for the overall hashrate of the cloud mining contracts offered through the platform from the provider UMISOO. So currently the Miner Status page is not very informative apart from the data in the table you get about your purchased hashrate and the “Unassigned Earnings” which apparently is the amount you have mined so far. Other than that you should know that in order to purchase Bitcoin mining hashrate from Hashnest you should first deposit Bitcoins in your account and then you can pay with them for hashrate. The confirmation of the transaction and the availability of the Bitcoins in your account is pretty fast and after you have them in your balance the purchase and allocation of the paid hashrate apparently happens instantly. We’ll see how the service will continue to evolve, but it seems that it needs some work on the user stats for the new cloud mining functionality and the rest is apparently already working quite well.
KNCMiner has announced that they are starting to offer for a limited time Bitcoin online mining contracts powered by the company’s mining hardware located in their Clear Sky mining farms in the polar region (KNC Cloud). The currently available contracts are three – 1 THS for $1995 USD or about 1.99 USD/GHs, 3 THS for $5495 USD for about $1.89 USD/GHs and 5 THS for $8995 USD or about 1.79 USD/GHs. The duration of all contracts is only 6 months however and not 1 year as you might expect however at these prices and with the current market situation these cloud mining offers are highly unprofitable and there is not much point to invest in them. Normally you would expect to see really good offers for cloud mining from an ASIC hardware manufacturers, but apparently this is not the case with KNC’s offers for the moment.
Running the numbers through a Bitcoin profit calculator shows that 1 THS contract for 6 months at the current Bitcoin price and network difficulty will not even ROI if the difficulty remains at the same level at it is at the moment. With no difficulty increase, which is of course impossible, you would need more than 7 months just to ROI, let alone make some profit. And if you take into account an average difficulty increase of about 15% the numbers will never be in your favor with these prices and just 6 months contracts. Again if you are going to bet on the fact that the price of Bitcoin will rapidly increase by the end of your 6 month contract, then you will still be better of betting on just buying Bitcoins now and investing in these mining contracts. It seems that some companies in the crypto mining business have forgotten why people mine in the first place – to make profit, and if it is even just for fun… well what fun is it to invest in a cloud mining service that has no chance of even returning your initial investment.
A few days ago, after a slight delay in the original scheduled release date, Genesis Mining has added Bitcoin cloud mining option to their already available Scrypt cloud mining service and apparently a X11 cloud mining might be coming soon as well. We have already reviewed the Scrypt cloud mining functionality of the service after it has been launched a while ago. The new Bitcoin cloud mining functionality however came with a bit of a redesign of the interface in order to accommodate the new features in a single dashboard, so that you can keep track of all your different hashrate and earnings in a single interface.
Back in June, when we have purchased 1 MHS Scrypt cloud mining hashrate to test the service the price was about twice as high compared to now, but the profitability was about 3-4 times higher. At the moment things are not looking so bright as they were about three months ago, still we are almost halfway getting our investment back. If you invest now however things are already not looking so bright as you might not be able to ROI in the term of the contract (standard 1 year, though there are options available for 1.5 and 2 years with lower price for the extra time) and that is with the difficulty not increasing from the level it is now. It is true that lately the LTC network difficulty has been keeping a stable level, but it is completely unreasonable to expect that to keep forever. The price of LTC is also not that good either at the moment, but if you are going to bet on Litecoin getting more valuable, then you can just buy coins and profit from their price increase later on.
Unfortunately running the numbers with the current price of Bitcoin cloud mining of about 0.006 BTC per GHS ($2.9 per GHS) the outcome is also not so bright as with the Scrypt cloud mining numbers. It is nice that there are no maintenance fees and the price you pay is for 1 year mining contract, but at the current state of things you will barely manage to get a return of the investment if the BTC network hashrate does not increase from its current level and we all know that this will not happen. With an average increase of 15% per readjustment the network difficulty will get to a level that there is absolutely no chance for you to even ROI, let alone profit from a 1 year contract if the price of BTC remains the same. And again if you are going to bet on increase of the price of BTC in the future, then you better just buy Bitcoins now and wait for them to become more expensive.
Now that everyone seems to be moving towards cloud mining services you need to be very careful not to invest in scams that may try to attract with very low price on one hand and on the other to invest when there is very little to no chance of even returning your investment, let alone making profit. After all most of the people that mine crypto currencies do it to make some profit, so do run the numbers carefully through a profit calculator and consider when and where it is worth to invest into. Unfortunately there are quite a few cloud mining services that currently do not seem profitable with the current prices of crypto currencies and the already quite hard to mine them conditions.
Still, if you want to try the cloud mining services that Genesis Mining offers, you might take advantage of some promo codes to make the prices lower and get a chance for faster ROI at least. The guys from Genesis Mining have given us a special 5% discount code – CryptoMiningBlog5 for both Bitcoin and Scrypt cloud mining as well. After this code expires you can still get a 2.5% discount by using the promo code nSO2TE as this one does not have an expiration date and also works for both Scrypt and SHA-256 cloud mining hashrate that you can purchase at Genesis Mining.