Week 3: increased Bitcoin yields, low Ether value

Third week passed with basically the same setup as the previous one. I’m thinking about allocating more hashpower to ETC (vs. ETH) but haven’t acted on it yet. Daily value for ETH is low today, which is clearly visible in the profit margins. Even with the low daily value, ETH stands as the most lucrative part of this project to date.

Bitcoin yield was actually higher than previous week (with the same hashpower assigned), which makes for some interesting theories. As always, the latest data is available in an open Google Spreadsheet here.

These estimates don’t take into account a) the mining difficulty increase, and b) price fluctuation.

 

ETHEREUM

Ethereum yield: 0.16951488

Ethereum classic yield: 0.68388561

Total contract lifetime income estimate (USD): $5902.00

Profit margin (2-year contract): $4172.57

 

BITCOIN

Bitcoin yield: 0.00796723

Total yearly income estimate (USD): $1044.68

Profit margin (1st year / consecutive years): $487.90 / $1044.68

Please note that in the profit margin calculation for Bitcoin, I’ve assigned the initial contract fee for the first year. Since it’s a lifetime contract, there are no investment fees for consecutive years.

 

MONERO

Monero yield: 0.20323520

Total contract lifetime income estimate (USD): $953.68

Profit margin (2-year contract): $549.68

 

Monero’s value is still low, which makes for somewhat uninteresting results, especially given the low investment at this point. However, Bitcoin continues to do well, and I’m contemplating purchasing more Bitcoin hashpower if the trend stays the same.

USEFUL LINKS

Genesis Mining

Market Caps

Genesis Mining: Ethereum vs. Ethereum Classic – which is more profitable?

I recently branched out to mining Ethereum Classic as well, and thought I’d run an analysis on which one is more profitable right now. These numbers are based on real data received from Genesis Mining.

TEST SETUP

Ethereum hashpower 55.52MH/s

Ethereum Classic hashpower 13.88MH/s

 

RESULTS

Ethereum yield per MH/s: 0.00048193858

Ethereum daily income per MH/s: $0.178

Ethereum Classic yield per MH/s: 0.008468937

Ethereum Classic daily income per MH/s: $0.193

 

The conclusion: if you only look at today’s cryptocurrency values and mining difficulty, ETC is the winner. However, the price predictions for ETH are more positive than for Classic, and with the looming Proof of Stake update, ETC’s fate is still unclear. It really depends on preference; if you want a higher yield (more coins), ETC might be a better choice.

I will keep mining both to spread the investment, but focus will be on ETH at least for the time being.

USEFUL LINKS:

How to mine Ethereum with Genesis Mining

CoinWarz mining difficulty rankings

 

Week 2 in numbers: strong Ethereum & BTC, Monero uneventful

Second week came and went – let’s see the numbers. Everything in the setup remains the same, except for a small allocation switch between ETH and ETC. The current profitability analysis for these two coins is nearly the same, but ETC yields are much higher; I’ll do a separate post about it later this week.

Projected income got a hefty bump and now stands at around $12k a year. Very happy about this, as I was expecting the currencies’ price increase to not have enough effect to offset the difficulty increase.

All data is now available in an open Google Spreadsheet here (you can also find it from the right-hand side on the website, under “Current Status”). Thanks Jake @ DigitalInvesting.io!

These estimates don’t take into account a) the mining difficulty increase, and b) price fluctuation.

 

ETHEREUM

Ethereum yield: 0.20383

Ethereum classic yield: 0.49365724

Total contract lifetime income estimate (USD): $8673.44

Profit margin (2-year contract): $6944.01

 

BITCOIN

Bitcoin yield: 0.00731493

Total yearly income estimate (USD): $985.4

Profit margin (1st year / consecutive years): $428.62 / $985.4

Please note that in the profit margin calculation for Bitcoin, I’ve assigned the initial contract fee for the first year. Since it’s a lifetime contract, there are no investment fees for consecutive years.

 

MONERO

Monero yield: 0.21639061

Total contract lifetime income estimate (USD): $1148.16

Profit margin (2-year contract): $744.16

 

All in all, very encouraging results. Ether continues to do well, and branching out to ETC will allow for spreading the investment and increasing potential through more coin (ETC is very fast to mine), while having minimal effect in overall profitability.

Monero remains an interesting candidate due to the price increase potential, but the week was rather uneventful. In other news, Bitcoin experienced a huge price spike, but the value quickly returned to earlier level.

I also recently got into Minergate, which is an easy solution to start mining a variety of cryptocurrencies (incl. Ethereum and Ethereum Classic) with your home computer – for free. I’ve written a separate post about Minergate here.

USEFUL LINKS

Genesis Mining

Market Caps

How to mine cryptocurrency on your computer – the easy way

This guide will help you set up cryptocurrency mining on your computer, with no in-depth technical knowledge required. It only takes a few moments to begin mining with Minergate, and you can put your computer’s processing power to good use and begin making some money. Best of all: it doesn’t cost you a dime, and works on any computer.

1)

Join Minergate here. Don’t forget to use a strong password!minergate1.png

2)

Click here to download and install the Minergate software (Windows / MAC / Linux).

minergate2.png

 

3)

After the installation is done, start the MinerGate software and log in with your credentials.

minergate3.png

4)

You’re all set! The MinerGate software will automatically run in the background and use your computer’s CPU and/or GPU to mine coins, which will be deposited to your MinerGate wallet. I recommend using the Smart Mining method, which will automatically pick the coin that has the highest exchange rate at the moment.

minergate4.png

If you have any problems installing and/or using MinerGate, please let me know in the comments. Happy mining!

USEFUL LINKS:

MinerGate

Cryptocurrency mining difficulty rankings

Wallet software (Exodus)

Hashflare vs. Genesis Mining: side by side comparison

The two largest cloud mining services today are Hashflare and Genesis Mining. Since my mining investment is increasing rapidly, I decided to do a comparison of the services offered by both companies. Please note that all estimates are based on 15th June, 2017 currency rates and yields calculated with the CryptoCompare Mining Calculator.

ETHEREUM MINING

Hashflare

Contract cost: $22 per MH

Contract length: 1 year

Profit estimate for a 20MH contract: $1006.58

 

Genesis Mining

Contract cost: $30 per MH

Contract length: 2 years

Profit estimate for a 20MH contract: $2293.16

 

For Ethereum, the results are clear: Genesis Mining offers much better ROI, even if you look at 1-year returns. Hashflare’s contract cost is lower, but the 1-year length (vs. 2 years with GM) means you will end up with significantly less Ether if you sign with Hashflare.

 

BITCOIN MINING

Hashflare rates

Maintenance $0.00035 / GH / 24h

Contract cost: $0.12 / GH

Profit estimate for a 2.5TH contract: $215.125 (first year) / $515.125 (consecutive years)

 

Genesis Mining rates

Maintenance: $0.00028 / GH / 24h

Contract cost: $0.1396 / GH

Profit estimate for a 2.5TH contract: $230.00 (first year) / $579.00 (consecutive years)

 

Again, Genesis Mining comes up on top. While the initial cost of the Hashflare contract is lower, the higher maintenance cost will dig in to your revenues, resulting in a lower total yield. Especially if you’re looking to scale your Bitcoin mining higher, Genesis Mining is the way to go.

Hashflare doesn’t offer Monero mining, so I couldn’t compare it. All in all, it seems that Genesis Mining is running a more efficient operation, and is able to offer better rates for their customers. If you’re looking to start mining cryptocurrencies with cloud mining services, I recommend Genesis Mining. You can find a step-by-step guide to mining Ethereum here, and another guide on how to start mining Bitcoin here. For now, it seems that Ethereum remains the more profitable option of the two.

USEFUL LINKS

Genesis Mining

Hashflare

How to mine Bitcoin with Genesis Mining without buying hardware

With an estimated yearly ROI of 247% (1st year of contract), it’s definitely worth looking into Genesis Mining’s Bitcoin mining contract – especially if you’re not interested in building your own rig, or if it’s impossible due to space or electricity price limitations.

Here’s a short guide on how to get started. To see an example of mining results, I’ve posted about it here. I’ve also written a post about theoretical mining yields and income for the contract; more about that here.

1)

Join Genesis Mining here (or log in, if you already have an account). The process is straightforward; remember to use a strong password.

2)

After the registration process is done, log in and click “Upgrade Hashpower”. The Bitcoin contract is the topmost option; adjust the slider to select how much Hashpower you want, and click ‘Continue’ on the lower right corner when done. You can pay with a credit card, bitcoin or some altcoins – I used a credit card. You can use the code Sr5fmI to get 3% off your investment – including upgrades, if you’re already registered and are increasing your hashpower.

mining-bitcoin-slider.png

To estimate yields, use this calculator. At the time of writing (Jun 14th, 2017), the 2TH/s contract costs $300 and yields 0.2704 Bitcoin per year (valued at $756.17).

3)

After the payment is processed, the miners will begin working automatically. The next step is to set up a wallet so you can receive the payments; I recently started using Exodus, which is a really cool desktop wallet software for holding several cryptocurrencies, incl. Bitcoin and Ether. You can get Exodus here. I’ve also written a post about setting up payments directly to marketplace wallets, but I’m still contemplating whether this is the best option vs. having an external wallet. If you prefer to use a mobile wallet, I recommend having a look at Freewallet.org.

That’s it – you’re all set. The easiest way to follow your asset development is in the “My Orders” tab of the Genesis Mining website. If you paid with a credit card, you’ll receive your first mining yield payment after 30 days; subsequent payments are done daily.

If you have any problems setting up your Genesis Mining account or opening a wallet, please let me know in the comments.

Disclaimer: the numbers posted here are estimates, and can change. Like with any venture, never invest anything you’re not prepared to lose.

USEFUL LINKS

Genesis Mining

Official Bitcoin website

Week 1: results and predictions

First week’s results are in. Please note that these estimates:

  • Are based on current market prices. If cryptocurrency prices increase, profits increase. If prices drop, profits drop.
  • Don’t take into account the gradual difficulty increase in mining.

 

June 5th – June 11th

ETHEREUM

Average Ethereum yield per day: 0.0305217

Two-year Ethereum yield estimate: 22.280841

Total contract lifetime income estimate (USD): $7761.57

Profit margin (2-year contract): $6467.64

 

BITCOIN

Average Bitcoin yield per day: 0.0007745825

Yearly Bitcoin yield estimate (lifetime contract): 0.2827226125

Total yearly income estimate (USD): $843.55

Profit margin (1st year / consecutive years): $505.02 / $843.55

Please note that in the profit margin calculation for Bitcoin, I’ve assigned the initial contract fee for the first year. Since it’s a lifetime contract, there are no investment fees for consecutive years.

 

MONERO

Average Monero yield per day: 0.026489192

Two-year Monero yield estimate: 19.33711016

Total contract lifetime income estimate (USD): $995.348

Profit margin (2-year contract): $672.148

Update 19.6: adjusted Monero profit margins due to an error in original formula.

 

Comparing my numbers with the results from CryptoCompare’s calculator, the yields are around 1-2% lower. I was expecting a lower yield, so this was a positive surprise.

The most important takeaways? From a yield perspective, the Ethereum investment will be paid off fastest (at around 4 – 4.5 months), and with the PoS update coming sometime in 2017 – 2018, you will want to hold as much Ethereum as possible at that point. More information about Proof of Stake here.  I will increase investment in all three fields to keep it diverse and help manage risk, but focus is on Ethereum.

USEFUL LINKS

Genesis Mining

Market Caps

Getting paid by Genesis Mining – basic guidelines

I wrote earlier about how to set up your Genesis Mining platform.  While Freewallet (or another external cryptocurrency wallet) is a good option, it is easier and potentially safer to use a marketplace wallet directly (only one point of failure). This way, you’ll only have to do one transfer, and the funds will be immediately available to exchange for USD/EUR/your currency of choice.

There are several options to choose from based on your location. I use these marketplaces:

  • Kraken (my main platform for selling / trading)
  • BitStamp (recommended for European users)
  • Bittrex (recommended if you want to trade mainly with cryptocurrencies / altcoin)

If you plan to start mining with GM, I recommend opening an account to Kraken / Bitstamp / Bittrex already, as their verification process can take a long time, especially with Kraken. That said, it’s worth the wait, and my recommendation of the three options listed here.

After your marketplace account is set up successfully, open a wallet for every currency you’re mining (Ether, Monero, BTC) and copy the wallet address to Genesis Mining’s settings so they can pay you directly. I also recommend activating two-factor authentication for increased security.

UPDATE 21.6.2017: I’ve moved to using the Exodus wallet – click here for more information.

 

Analyzing the Genesis bitcoin mining contract (theoretical)

The Bitcoin mining lifetime contract is available at Genesis Mining again. I’ve decided to do a conservative investment and assess the results before expanding.

For the time being, here are some calculations on the profitability. Please note that before consistent data is available, this is purely theoretical, so invest at your own risk. This calculation also assumes that BTC value will stay on its current level, which is highly unlikely.

A 2.5TH/s investment will result in approximately 0.338 BTC mined per year, with a first year cost of $604.5 and every consecutive year at $255.5. With the current Bitcoin value, this translates to:

FIRST YEAR: $944.66 total mined value, $340.16 yearly profit

SECOND AND THIRD YEAR: $944.66 total mined value, $689.16 yearly profit

 

Since the Bitcoin block (and rewards) drop to half in mid-2020, I’m considering this investment to be viable only until then, even though the contracts have no ending date. All in all, it seems a viable option and a decent addition to the portfolio, especially with the current BTC price trend.

USEFUL LINKS

Genesis Mining

Official Bitcoin website

 

Monero mining – worth it or not?

Results were updated today – I’ve added the holdings value to better keep track of asset development. Slight investment increase, with a total of just over $2k and a bump to projected yearly profit, which stands at around $3.7k now.

I’ve also invested in mining Monero. While the contract’s average break-even point is not as good as with Ether (10 months vs. 4.5 months), there are two reasons to justify this:

  • More spread -> “not having all of your eggs in the same basket”
  • Price increase. Monero’s coin price is still low, and while nothing is guaranteed, its 2nd tier coin position seems fairly stable

If you are (or will be) mining with Genesis, it might be worth it to spread your hashpower investment between Monero and Ether – with emphasis on the latter. For those interested in buying directly instead of mining, check out this article by CoinDesk.

Along with mining, I will include some hold-and-sell activity in the project to add variation. More on this later.

USEFUL LINKS

Genesis Mining

Official Monero website