It is now a year since we signed up to a contract to mine the cryptocurrency Monero with Genesis Mining and so it’s time to wrap up our review.
Basically Genesis Mining is a company that allows you to “mine” cryptocurrency – or in other words participate in verifying transactions on the blockchain and receive rewards for it. You receive a daily payout and can then transfer the proceeds from your Genesis account to another wallet and convert it to fiat currency (real money).
You can choose to mine a variety of cryptocurrencies but at the time we signed up Monero was the best available so that was the one we chose to mine.
The overall results are as follows:
- Amount Invested: $819
- Returns to Date: 1.83 Monero (current value = $82)
We still have a year left to run on our contract but even with that we are looking at a substantial loss here. Suffice to say this has been a disaster and one of the worst investments we have ever made.
The main problem in reality has been the crash in the cryptocurrency market that has affected the price of Monero (and just about all other cryptocurrencies).
At one stage, Monero was worth over $400 and at those prices we would have just about recouped our investment by now.
But alas it is currently worth just $45 and the returns have therefore been pitiful.
In terms of the mining itself, it has also been disappointing in that we were projected to receive 6 Monero per year at the start of our contract but have in fact received less than 2 so far.
This is in large part down to increases in the “difficulty” of mining – or in other words more people participating in mining thus reducing the slice of the pie that each person gets.
So there isn’t much left to say other than that this receives an epic FAILED rating from us and is not something we could recommend to anyone.
Looking at the bigger picture, cryptocurrency had an astonishing run last year and those who got in early enough would have made a lot of money, but in reality it is a highly speculative market with most coins having no underlying value and many having no purpose.
It has also been a magnet for scammers and spammers of all kinds which has further tarnished cryptocurrency’s reputation and damaged its long-term prospects.
Will the current slide in the market continue or will cryptocurrency someday recover its lustre?
Who knows, it is anyone’s guess really. But the wild ride experienced over the last couple of years should be a salutary lesson to everyone involved about the risks of participating in an unregulated investment and just how much markets can be driven by hype and hyperbole rather than fundamental value.
No doubt someone will write a book about the whole thing at some point, but for the time being we are definitely out of the crypto markets and anything related to them.
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Genesis Mining – Results Update
6th April 2018
It’s been a while since we updated our ill-fated investment in the cryptocurrency scheme Genesis Mining so we thought high time for an update.
The main news is that we have now mined one Monero in total, which is the equivalent of around $121 at the time of writing. That is from an initial investment of $819.
Last time we reported that Genesis would no longer be able to mine Monero and would be mining other coins instead and converting them to Monero for those of us holding Monero contracts.
Well that all seems to have worked reasonably well, with payouts having resumed and actually increased over the last few days to around 0.006 Monero per day, which is the equivalent of around 2 Monero per year.
However, that is still well below the initial payouts we were receiving when our contract started and nowhere near enough to pay back our initial investment, unless Monero skyrockets in price at some point.
In that case though we would still have been better to just hold Monero originally rather than invest in mining, so either way this is looking like a dead duck and perhaps one of the worst investments we have ever made.
You live and learn as they say.
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Genesis Mining – Results Update
6th April 2018
Well our investment in Genesis Mining has descended into farce since our last update.
Firstly, they have set a minimum payout level of 0.4 Monero, in what seems to us a completely arbitrary and unnecessary move. They don’t even show how much Monero we have mined, so we can’t even update our figures here.
Secondly, Monero is undergoing a fork and will switch to a new algorithm, meaning Genesis won’t even be able to mine it anymore. They say it’s ok, they will switch to “mining the best coins available and converting them to Monero for you.” But forgive us if we are a little sceptical.
Finally, the returns from mining have crashed so badly it’s probably all irrelevant anyway.
So the bottom line here is that it looks like we would have been better just buying some Monero at the outset and holding it rather than investing in mining.
We certainly wouldn’t advise anyone to invest in cryptocurrency mining from Genesis or anybody else for the time being, unless things radically change. The bubble has well and truly burst.
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Genesis Mining – Results Update
24th February 2018
We have earned another 0.08 Monero with Genesis Mining since our last update, which means we have now mined 0.81 Monero in total.
Unfortunately they have had problems with recording the payments so we aren’t able to update the daily results.
But the current situation is that we are earning around 0.004 Monero per day, compared to around 0.016 at the outset, so a massive drop.
This is due to the mining difficulty increasing, which is indicative of more and more people entering the mining game, so the mining rewards are shared among a greater number of people.
It’s not surprising really when you have something that’s so profitable and the barriers to entry are as low that every man and his dog wants a piece of the action.
The reality is that if the difficulty keeps increasing then we will end up mining pretty much zero Monero and it will be pointless.
At the moment it is looking like it probably would have been better to just buy six Monero with our $800 at the outset rather than buy a mining contract, because it looks very unlikely we are going to end up with more than six Monero. That is just how the cookie crumbles sometimes though, at the time it looked like a very profitable endeavour.
Anyway, we will keep on monitoring things and see if there is any way to improve our returns going forward.
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Genesis Mining – Results Update
5th February 2018
We have earned another 0.23 Monero from our Genesis Mining contract, which means we have now mined 0.73 Monero in total since our contract started in November.
You can view full results here.
For some reason on our Genesis Mining account there are a few days missing, which means the total on our spreadsheet is less than we have actually mined. We have contacted Genesis Mining to ask them why that is the case.
Anyway, the 0.73 Monero we have mined so far would be quite good, apart from the fact that the recent cryptocurrency market crash has meant the price of Monero is back down to just $193 whereas it was over $400 a month ago!
Whilst that is disappointing, at the same time prices may well bounce back over the next few months, so unless you are wanting to cash out your earnings then it shouldn’t really be a problem.
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Genesis Mining – Results Update
3rd January 2018
We have now mined just over 0.5 Monero since our contract with Genesis Mining started around six weeks ago.
With Monero priced at $400 at the time of writing, that means we have made just over $200 worth of Monero in six weeks, which is pretty good.
You can view full results here.
Just a reminder that our original investment was $819, so we are nearly a quarter of the way to recouping our investment already.
As you can see from the results, the amount of Monero we are mining each day has dropped quite a lot since the start of the contract (by about half), but that is just a reflection of the price of Monero having more than doubled in that time, so the difficulty of the mining has increased and the two things pretty much cancel each other out.
Anyway, we are quite pleased with this as a passive income stream and once we have earned enough Monero, we could consider reinvesting it into more mining power to increase our earnings exponentially.
That time is quite a way off so we will have to wait and see what we do then, but it is a case of so far so good with Genesis Mining.
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Genesis Mining – Results Update
3rd December 2017
We are a couple of weeks into our investment with Genesis Mining and so far things have been going well.
We have mined 0.218 Monero so far, which equates to around $45 at the time of writing with Monero priced at $205 per coin. Our investment at the start was $819.
You can view full results here.
If the current rates continued, then we would end up with approximately 11.5 Monero at the end of our 2-year contract, which would be a return of around $2,340.
Things aren’t likely to stay at the same rate in terms of the amount of Monero mined though, because as the price goes up, the mining difficulty also goes up and you end up mining less coin.
Roughly speaking though the two things should even themselves out.
Either way, it’s looking like an excellent passive income investment so far as we haven’t had to do anything – just sit back and watch the Monero roll in. Good stuff.
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Genesis Mining – New Review
19th November 2017
Here at Honest Betting Review we have recently moved into the cryptocurrency space in the hope of landing some of the phenomenal returns that have been generated in it.
As well as buying some Bitcoin and other cryptocurrencies, we have also participated in ICOs (Initial Coin Offerings) of companies like Electroneum and joined lending platforms such as Bitconnect.
Now we are investing in the mining of cryptocurrencies, another way to potentially profit from the crypto world.
We recently started a review of the BitClub Network and will be mining some Bitcoin through that platform.
And today we are starting a new trial of another mining platform called Genesis Mining.
Just in case you aren’t familiar with the idea of mining crytocurrencies, basically what it entails is using considerable computing power to verify transactions made using Bitcoin and cryptocurrencies and to ensure their smooth functioning.
For providing these services, miners are provided with a share of the coin that is generated. This can be very lucrative if the coin being mined is valuable, for example with Bitcoin being worth over $7,000 currently.
Genesis Mining has been around for three years and is a reputable and well-known mining company. They apparently have over a million members and are the world’s leading cloud mining platform.
They have a level of transparency often absent from the crypto space, with members able to view their mining farms and there are a number of videos showing their mining operations in action.
By investing in a company like Genesis Mining, you are essentially renting the mining hardware for a fixed period for a given fee.
Then however much coin is mined each day is paid directly to you, which you can withdraw, invest in more mining or convert to another cryptocurrency.
Some of the advantages of Genesis Mining are that:
- – The mining equipment is already set up so you can start earning straight away
- – You can mine a range of cryptocurrencies including Bitcoin, Ethereum, Litecoin, Dash, Monero and Zcash.
- – You can choose your payouts in different cryptocurrencies from the one mined in
- – You can start mining with as little as $28
- – You can pay by credit card so don’t need to go through the complex process of buying a cryptocurrency first
So all in all Genesis Mining looks like a very good offering and one we are looking forward to testing.
Unfortunately at the moment all their Bitcoin mining contracts are sold out, so having done some research we think the next best coin to mine at the moment is Monero.
So we have bought a Monero contract of 1000 H/s for $819.
The H/s is the mining power you are getting – the more powerful, the more coin you will mine.
Using the calculator at cryptocompare it estimates we would receive $825 profit per year, which would work out as a return on investment of over 200% over the 2-year lifetime of the contract.
However, that doesn’t account for the potential increase in the price of Monero over that time, nor for the potential to reinvest some of the earnings into more mining power.
So for example if we mined six Monero coins per year and the price of the coin doubled each year, we would actually receive $4680 worth of Monero and a return on investment of nearly 600%.
Of course, the price of Monero could actually drop and the difficulty of the mining could increase (reducing the amount of coin mined) so these numbers are just rough estimates really, but they give you some guidance as to what is possible anyway.
We will probably look to mine some other coins with Genesis Mining as well. It isn’t clear when Bitcoin will be available again, so we may mine some Ethereum and Litecoin in the meantime.
As we say with all cryptocurrency-related investments, if you are thinking of investing in this please only risk money you can afford to lose. Although Genesis Mining looks about as solid and legitimate as it gets in the crypto world, there is still a risk things could go wrong and you could lose your investment.
Anyway, in terms of th review we will update progress here regularly so you can see how we are doing with our mining.
In the meantime you can check out Genesis Mining and GET A 3% DISCOUNT on any purchase you make by using the Code 0yHBEq here.
