I just recently started mining with Genesis Mining and Hashing24 after years of mining at home became more and more expensive. I thought I would do a comparison between the two leading Cloud Mining Companies and mining at home with an ASIC miner of the same hashpower and see which is more profitable. I would like to note that both Hashing24 and Genesis Mining are industry leaders in cloud mining and the only two companies I have even considered using. Genesis Mining has been around for many years and thousands, perhaps millions of people have mining contracts with them. Hashing 24 has been around for several years as well, just not as long as Genesis Mining. They ARE however, partners with Bitfury and that's where their hashpower comes from. This also lends them credibility in my eyes, because Bitfury is the biggest miner in the Cryptosphere and manufactures their own ASIC miners. Mining contracts from both companies are open ended contracts, which means they don't end after 2 years like other companies' mining contracts.
First, let's look at mining at home. For the purposes of this comparison, I chose the Antminer S7 4.73Th/s ASIC miner as it is available(used) on Ebay and is a fairly new technology(28nm), so it is still a good choice for the home miner. The S7s on Ebay are a variety of prices because they are ongoing auctions, so I found one that had a "Buy It Now" price. The price for this miner was $699.99 with free shipping.
It will also require a power supply(none of the miners listed come with a power supply) and it has to be 1300 watts. I found a power supply on Newegg.com for $279.99 plus $8.99 shipping.
So, our grand total for the Antminer set up is $988.97. Let's plug in some numbers on the coinwarz.com mining calculator and see what kind of ROI we can expect.
I input the hashrate, the wattage of the PSU, and the cost of the equipment. I left the Electricity cost at 10 cents, because that's about average and also put in the normal Pool Fee of 2%. According to coinwarz, we can expect to recover our $989 in 571 days, or almost 2 years. This is a long time because of the electricity usage. This figure is in dollar value however, so let's see how many Bitcoins the Antminer would mine in a year at 4.73Th/s.
In a year it would mine 0.64 BTC approximately, but look at the electricity cost! After you pay for the power, it will net $631.47 per year at current difficulty levels!
Now, let's see if cloud mining can do better. We'll look at Hashing24 next. We'll use the same 4.7Th/s and see what it costs.
Hashing24 sells 4.7Th/s for $935.35 USD, or you can pay in Bitcoin(0.3247 BTC). As I mentioned earlier, this is an open ended contract, so it will mine until you cancel it. It's also $53.62 cheaper than the Antminer and power supply. You also don't have to set it up, configure any settings, or listen to it. How will it compare as far as ROI?
After changing a few parameters, like power is zero, electric cost is zero, pool fee is zero, and the cost is a little less, we see that we will break even in 184 days! That's much sooner than mining at home, because there is no electricity bill. There is a small daily maintenance fee, but it's only a few cents, so it's negligible. Now, let's see how many Bitcoins it will mine in a year.
According to coinwarz, the Hashing24 contract will mine about the same 0.64 BTC, but look at the annual profit difference. It nets $1,848.79 per year at current difficulty! That's almost triple the return of mining at home. Of course, it will be slightly less, because of the maintenance fee, but not by much.
Of course, you don't have to go for 4.7Th/s all at once, Hashing24 sells contracts as small as 100Gh/s for only $19.90!
Let's see what the ROI is on a 100Gh/s(0.1Th/s) contract.
Coinwarz says a 100Gh/s contract will break even in 184.5 days(same as the 4.7Th/s contract). Let's see what it will mine in a year.
It will mine 0.01352198 BTC in a year's time at current difficulty, or $39.34. Not bad for a $19.90 investment. After the break even period, it's all profit!
Now, let's see how Genesis Mining stacks up to the competition. They have been sold out of Bitcoin Mining contracts for a week or so, and just relisted them on the site. I hope they don't run out again. Anyway, let's take a look.
Genesis Mining doesn't have a 4.7Th/s option on the slider, so I had to go on up to a 5Th/s contract. As you can see it's quite a bit cheaper at $700 even. This price drops to $679 if you use the code below for a 3% discount. For the sake of this comparison though, I'll go by $700. Let's see what 5Th/s would mine in a year.
I had to change the Hash Rate and the Price, of course, but coinwarz tells us that a 5Th/s contract will break even in 129.91(130) days. That's a full 54 days faster than Hashing24, which was already faster than mining at home! Not bad at all. Let's see how many Bitcoins 5Th/s would mine in a year.
It looks like it will mine slightly more at 0.676 BTC, for an annual return of $1,966.79! There is also a small daily maintenance fee on Genesis Mining, but it is negligible as well.
While we're at it, let's look at the smallest of Genesis Mining's contracts(200Gh/s).
The 200Gh/s(0.2Th/s) contract will cost $30. That's about 50% more than Hashing24's smallest mining contract, but it's double the hashrate, so that's pretty good. The 3% code can be used on this contract as well, bringing the cost to $29.09. About 90 cents off.
Let's see the returns on this contract.
This one will break even in 139 days. It's slightly longer than the 5Th/s contract, but the bigger contracts probably give a price break. Let's see how many coins it would mine in a year.
According to coinwarz, it will mine 0.027 BTC in a year's time at current difficulty for a return of $78.67! That's pretty darn good for a $29 investment. This is also an open ended contract, so it will continue to mine even after you break even!
Both Hashing24 and Genesis Mining are great companies with good deals on mining contracts. This comparison reveals that Genesis Mining is indeed more profitable, but it's good to have Hashing24 as a backup in case Genesis Mining sells out of Bitcoin Mining contracts again. Hashing24 could also lower rates in the future, so it's worth keeping an eye on them. If you should decide to start mining with either one, it would help me out a little and save you some money if you visit them through one of my banners below or use my discount code below to save 3%. Have an awesome day!
P.S. I almost forgot to mention, Genesis Mining also has contracts to mine other cryptocurrencies like Ethereum, Monero, Dash, Litecoin and more. Hashing24 is strictly Bitcoin mining.
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