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.

Looking back

I left after 5 years feeling like I had done a poor job. The reason, I always am working to do better and thats a strength weakness.

Over the last six months a lot has changed in my life, starting most importantly with the addition of my fourth child. Given that my personal life is not the focus of this blog thats the last I will mention of it, but had to acknowledge it.
In addition to that I changed jobs. I moved from a Rdio where I had been for five years to a online ticketing company. Stepping down from a VP position where I had full access to everything to a Director with very little view of anything above me. Both companies are about the same age but its crazy how different they are.
The new ticketing company has a history of changing people running the computers and networks, sometime so fast that tasks where left mid stream. For those of you who have not walked into a situation like that its very interesting. Unlike when I joined Rdio, I would not be starting from scratch but rather making changes in place. At Rdio, I walked in with a rack of servers and a core router that had been sitting for months but not active. Within a few weeks I had the network reconfigured, the build system up, and the rack of systems running and Chefed. Was everything perfect, hell no but it was a solid foundation. From there I built the TechOps team and we continued that solid base.
Being the originator of a environment you can see every hole, everything that is wrong. I would often look at what we had and felt like a failure. Then I would bring in candidates and they would be really impressed. We had focused on a solid core, a very tradition and structured one but solid. We had very clear network paths from X to Y, systems where well defined and single purpose. After five years I started to loose the view of how well we had actually designed the system, so I left feeling like I had done a poor job. The reason, I always am working to do better and do not settle. Strength or weakness?