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