I was really excited when I bought first contract with Genesis Mining expecting a payout every day. OK, I was a bit optimistic but nevertheless the expectation of receiving passive income was a dream come true.
I purchased life time Bitcoin mining contracts and 2 year Ether mining contracts. The payout was smooth going with payouts every day so I was pleased at the rate of return on my investment. I worked out at the time that based on my payout I would see my principal returned within 5-6 months and after that it would be profits all the way. Three months has now elapsed and I am on my way to making free money.
5-6 months is still a long time, but with interest rates at an all-time low of near to 0% it was still better than nothing. Bitcoin being a “life-time” contract will allow me to mine bitcoin continuously albeit in small amount each time and ether for a duration of 2 years from the time I purchased my contracts.
However the recent hack discovered on 21st July 2017 resulted in the slow payday at Genesis Mining. Genesis Mining has informed us that they are on the case and everything will be back to normal soon. It has now been over a month and payouts are still being affected. However, missed payment have been made whole so I did not lose out as a result of the hack.
The hack has not affected my original schedule in which I expect to see return of my initial principal I invested in to Genesis Mining.
Whilst all eyes have been on the hack, the bitcoin mining difficulties seem to have decreased as I make this post whilst ether mining difficulties have increased. This is where I might find the spanner in the works.
The chart below shows the mining difficulties for bitcoin in the last few days has dropped considerably. Is this because of SEGWIT(X2) and the need to make bitcoin mining more profitable in order to overcome the challenges from the new upstart called Bitcoin Cash (BCH).
Snap shot of chart taken from https://bitcoinwisdom.com/bitcoin/difficulty
We see that the value of Bitcoin is going up every day but at the same time from the chart, the difficulties is decreasing. This only bodes well for the future of Bitcoin mining. As the difficulties drop, the number of bitcoin mined should also increase and thus Bitcoin should be come more profitable as a result.
However the chart showing the Eth mining difficulties tells a different story. The mining difficulties have spiked in the last few days.
Snap shot of chart taken from https://www.coinwarz.com/difficulty-charts/ethereum-difficulty-chart
Although difficulties have spike, the daily mining average does not seem to be affected as yet. Hopefully as the ether mining difficulties increase the price of ethereum should also go up in-line with the increasing difficulties.
There have been many YouTube commentators who are unhappy with the current situation regarding delayed payout associated with Genesis Mining and their decision to quit or not to upgrade their hashpower. They are only focused on the daily payout aspect and not on the picture as a whole. Of course it would be nice to get free money but with such rewards comes associated risks and one must always be aware of these risks before investing.
I still have faith in Genesis Mining to create a steady stream of passive income although it will only become so after I recuperate all my invested principal.
Oh! and by the way, if you are looking to buy more hashpower, do use my code UxW31v for a discount on your purchase.