Posts Tagged ‘cloud mining’

KNCMiner Starting to Offer Bitcoin Cloud Mining Contracts

2, Sep 2014

knc-cloud-mining-contracts

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.

Checking Out Genesis Mining’s Bitcoin Cloud Mining Service

1, Sep 2014

genesis-mining-scrypt-prices

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.

genesis-mining-sha256-prices

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.

– You can check the Scrypt and SHA256 cloud mining services offered by Genesis Mining here…

Bitmain Has Announced the Cloud Mining Platform Hashnest

1, Sep 2014

hashnest-cloud-mining-service

Bitmain, one of the top names among the Bitcoin ASIC miner manufacturers, has announced their acquisition of Hashnest – a cloud mining platform which was originally named Snowball Exchange (Snowball.io). Hashnest’s goal is to operate independently in order to build a reliable, economical and decentralized platform that serves the worldwide mining enthusiasts and hosting operators according to the new owner. Originally Snowball was more of a trade platform where you buy and sell actual hosted miners and popular only in China, but it seems that they are moving to providing hashrate to users that is backed up by a large mining farm(s) and opening to the rest to the world. We are not surprised from this news as we’ve recently discussed that cloud mining is going to become more and more attractive alternative to using physical miners for users that are mining crypto currencies. Do note however that as far as Hashnest is considered it is not regarded as a cloud mining service, but as a platform and there is a difference.

UMISOO, the first operator on Hashnest will provide 4 PHS of hashing power, and plans to start the Round 1 subscription at Beijing Time 22:00pm, 2nd September, 2014 (UCT+8:00 Time Zone). The price is flat at 0.0016 BTC per GHS. Due to the anticipated high demand, each user is limited to a maximum of 1000 GHS by default, though this limit can be increased further. The Round 1 hashrate is generated by AntMiner S2 mining hardware (4000 units) with a maintenance fee of $0.0032424 per GHS per Day. Doing some calculations if you purchase 1 THS hashrate you will currently be earning about 0.01834 BTC per day (about $8.78 USD) and the maintenance fee will be $3.2424 USD or the fee is about 37% of what you earn at the moment. The fee is a bit high, though the price per GHS on the other hand is very attractive compared to what other alternative cloud mining operations are currently offering. Even though doing some long term calculations it would take more than a year for you to just ROI, unless of course there is some significant increase in the Bitcoin price that will cause the fee percentage to get lower as it is calculated in dollar price.

– If you are interested in checking out the new Bitmain Hashnest cloud mining service yourself…


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