Took www.genesis-mining.com for a ride

Ok so the reality is https://www.genesis-mining.com. took me for a ride, a ride I willingly stepped onto but crazy! To be sure this is not a typical story and your results maybe very very different. As I can assure my other contract was a total loss.

First what is genesis-mining you ask? Well its a cloud bit miner, meaning they setup crypto mining hardware, mine coins, sell you a shares in those miners, and then pay you out the coins mined. Sound like a interesting deal, well its all speculation but here is out it worked out on one of my test.

From https://www.genesis-mining.com/pricing I chose the Dash Gemini package mainly because bitcoin was so high there was zero chance of making anything. In May of 2016 this package cost me .06 BTC ~27.6 USD, given the value of bitcoin was around $460 on the date of my purchase. So its been 9 months of a 24 month contract and due to a 10x increase in Dash I have recovered $26.2446565848 USD or 0.28400789 DASH at todays value of $92.40819537 USD/Dash. While this seems like a good thing given I have 15 months left on the contract, lets look at another investment I made in Dash in Dec.

On Dec 04, 2016 I invested $9.92 ($10 – exchange fees ) 0.01302497BTC for 1.13682797 DASH that $10 purchase is today valued at $105.0522211500.

While the Genisis contract looks like it may payout well, the reality is if I had taken that same .06 BTC (27.6 USD) and simply bought Dash coins it would be a net gain of nearly $270 USD vs the $0 USD gain I have with Genesis. Sure there is 15 months left on my contract but again even if it maintained the trend of 0.28400789 DASH every 9 moths I and Dash valuation stayed flat I would end up with a net gain of maybe $41 USD vs the $270 USD for just buying the coin. Pretty simple to see where I should place my money in the future. Even with Coinbases massive fees you still end up way ahead by buying crypto currency vs using Genisis.

I knew when I went into the the deal I was likely going to loose, but I was learning and am luck enough that loosing $30 bucks will not set me back. What I do worry about is all those suckers they are preying on, who think they are getting a good value. I would go as far as saying they are scam, they are a legitimate business model and you “could” make money if you use them. All I am saying is you could make a lot more just buying coins directly and you never need to recover your upfront fees. That said if you looking for a business model where you always win … cloud mining might not be a bad company to start.

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