Genesis Mining Bitcoin Contract: ROI

Bitcoin mining is still very much hyped and everyone praises the high ROIs of the different cloud mining providers, of course always linked with their affiliate code. Beginning of September 2017, I did buy a 100 TH/s open-ended Bitcoin mining contract from Genesis Mining. The start date of the contract was October 31th and it has been running now for 3 month. A good moment to have a critical review of this ‘life-time’ contract, as no one exactly explains you or know how long the contract will last.

I paid 12,611.31 USD in Bitcoin, at the date of my purchase it was 2.79 BTC. The open-ended contract includes a daily maintenance fee of 28 USD for 100 TH/s that is automatically deducted before any payments are issued.

The total payout after 3 months is stated as 12,556 USD or 1.27536076 BTC. Purely watching at USD, I’m on track at the moment to get my initial ROI back after 3 months.

Looking at the price paid in Bitcoin, it’s a completely different story. I did spend 2.79 BTC and have after 3 month a return of 1.27 BTC. I have 45% of my initial investment back. Not too bad after 3 month, you may think.

My daily payout is 0.00762128 BTC, down from 0.01569203 BTC per day at start - this is a decrease of more than 50% in just three months! Extrapolating this decrease of the daily payments, the contract will end before I get my initial investment in BTC back. The price of Bitcoin will have a great impact of the duration of the open-ended contract as the daily maintenance fee of 28 USD (USD 0.00028 per GH/s and day, deducted daily) is deducted from the generated coins. If the price of Bitcoin is higher, the generated coins will longer be sufficient to cover the daily maintenance fees.

To sum it up, the open-ended Bitcoin contracts with the daily maintenance fees seems to be profitable for Genesis Mining only. With these conditions I will be lucky to reach the ROI on my invested BTC and the dream of a good investment will be over.