I’ve updated this article since it’s original publish to add more clarification to HF payouts and expectations.
Almost 2 months ago I entered a 1 year contract with Hashflare to mine BTC in their farm. You can read my full review and updates at https://medium.com/@cryptoTweeg/hashflare-io-review-from-an-experienced-gpu-miner-and-it-guy-e9199159a9bf.
I’ve seen some ups and downs and have fielded a lot of questions. Lately most of the questions asked always boil down to people trying to decide if it’s worth it. Short answer, for me it is, but for you it might not be. Hopefully the points I make here will help you with your decision. I’m sure I’ll catch some heat for this article, but bear with me.
What is cloud mining?
First off, cloud mining is where you lease space with a mining farm to mine bitcoin. They take the risk of setup and management. You pay them a fixed fee for hashing power. They likely charge you a small maintenance fee and you get the remaining BTC. At the end of the contract you should have more BTC then you put in.
It Is easy
This is where cloud mining really wins. It’s easy, you don’t need to maintain a rig. I have many physical rigs running, and anyone who has even one rig can tell you, it’s not hands off. The noise, heat, updates, heat, crashes, and did I mention heat are all something you need to deal with. Regularly. This was my primary reason to explore cloud mining. I was running out of room.
My Goal — More BTC
I’m a very strong believer in BTC and my overall strategy is to have more BTC at the end of the year than I started with. When I started cloud mining, I initially invested $1650 USD worth of BTC buy my 7.5 th/s contract with Hashflare. At the time of purchase, my earnings forecast was 0.36 BTC, 3 times my initial investment. Since then, BTC’s value against the USD has come done a lot and I’m now earning less BTC due to maintenance fees (HF charges you $0.0035 cents per 10GH/s). After 2 months, my forecast is ~0.29 BTC. But that’s okay. I will still have more BTC than I started. And that’s what I care about.
One thing I’d like to also note, that my daily revenue forecast is higher as it’s based on my current hashrate of 9.46 th/s. If you’ve read my HF updates, you know I have reinvested some of my earlier payouts.
Soft Benefits — Great First Step
One thing that I found interesting about cloud mining is it was really good to ease someone into the crypto mining world without a huge investment. If you have no clue where to start, but want to get into the game and if you feel the financial risk is acceptable, cloud mining is a great first step. You become a miner, you get familiar with the language, processes and setups. And, with hardware costs as they are right now, it’s near impossible to build a home rig. You will be limited on what you can mine, but you’re mining.
Why Not Just Buy BTC?
Buying BTC is a good idea. I 100% support it. But that’s not what this is about. Is cloud mining as an investment the best idea? No. Are there better, but possibly more risky ways to invest? Of course. But if you’re tech savvy, interested in crypto currency and want to be part of it during the beginning, cloud mining is a good start. And yes, you will end up with more BTC than you started. What the value of that BTC is, is anyone’s guess.
Final Thoughts
If you’re interested in mining crypto currency, but don’t know where to begin, try it out. It’s easy, and for me a way to diversify a bit. If you’re looking at it thinking ‘I want to triple my money’, good luck. There’s no guarantees. Crypto currency is risky, it’s volatile and right now, no one knows what the next week, month or quarter looks like.
If you find this helpful and want to take the next step and start cloud mining yourself, please use my referral link to Hashflare here.
Or check out another platform like https://www.genesis-mining.com/ or https://www.nicehash.com/. I haven’t used Genisis, but I’ve used NiceHash.
