Cloud Mining – ‘a hidden pocket of the universe’. Not clearly mentioned on how exactly it began but rather, as sources mentioned, the rise of such companies started by the end of 2013. It is a common tendency for a cryptocurrency mining company to set up mining farms in areas which can utilize cheaper electricity with maximized efficiency. One example is the Genesis Mining company.
What is Genesis Mining?
Founded in 2013, as mentioned, the founders themselves met each other via the same platform when trading and purchasing bitcoins. The start of a friendship led to an execution of an idea that enabled the company to grow along with their user base.
Blessings after the blessing, new mining farms were constructed and additional staff was employed consisting of mainly programmers and engineers. All the current members, employers, and employees come from different design streams and scientific disciplines, yet, their common belief towards a digital currency generation and cryptocurrencies make them stronger in developing the online community.
How Does it Work?
Employing a remote data center with sharing data processing power, it creates and executes the process of mining bitcoins.
Users now would not need to purchase expensive hardware or “miners” to mine bitcoins but rather leave it to these service providers who will mine it instead. It compares to the concept of an agency who takes care of all sorts of issues before the consumer starts using the service.
These data centers/mining facilities are owned and controlled by the mining companies itself, therefore, leaving the user to register and buy the mining contracts/shares.
Similarly, the Genesis Mining company, as mentioned in their website, provides services, to users; that is easy to obtain hash power without having to deal purchase and deal with complex hardware and software to setup and install.
One of the main core aims of GM company is to provide the most efficient, effective and reliable rigs to the clients for rent.
Steps to be a Part of the GM experience
- Register on their website and create an account.
- Fund the account through different payment methods via Bitcoin i.e: Amazon, Paypal, credit card, wire transfer
- Choose the best mining plan package suitable.
Perks for being part of the GM experience
- Well reputed and set up with data centers being empirical.
- Contracts available for many cryptocurrencies.
- Often sold out due to the popularity of its services.
- Most transparent cloud mining company.
- Registered with the SEC for being provided funds for Bitcoin.
According to GM, the company has received abundant inquiries over the past two years estimate. Many users have started their own mining by using different hardware and carried out their own operations, however, this is not so appealing towards professional investors.
Therefore, the creation of the LOGOS Fund had started. It was considered a more professional approach which targeted wealthy investors attaining a high net worth. It was an initiative taken to entertain the investors and to improve the brand image of GM even further.
As mentioned through their website, there are 6 types of cryptocurrencies (Bitcoin, Dash, Ethereum, Litecoin and Monero, Zcash) which GM provides along with the limited pre-sale packages such as Starter, Advanced, Professional and Custom plan.
Bitcoin – the most popular cryptocurrency that is decentralized and wide open for users to register. Using an SHA-256 algorithm and ASIC software, it can be traded with flexibility with other cryptocurrencies. Contracts provided are variable and are determined by two to three factors mostly. A fixed maintenance charge will be taken thus deducting from daily payouts in BTC.
Dash – An acronym for Digital Cash, it provides quick secure payments online or through the store using an open platform which is protected. Using an algorithm of X-11, which is written by ingenious programmers, it enables mining of other cryptocurrencies to be done simultaneously.
It has the feature of Autotrading (mining the most profitable coin at any given time and then trading it); which is then enabled for other cryptocurrencies. Contracts do not charge maintenance fees and consists of a 24 hour- interval period.
Ethereum – Using an eth-hash algorithm, it runs applications in a way that does not create obstacles towards issues such as fraud, censorship, breakdowns, or any political/third party interventions. Just like Bitcoin and Dash, it auto trades and runs on smart contracts.
No maintenance charge will be added to the contract time and most likely for the contract to exist for 24 months. Certain actions will be taken in order to mine out the most profitable coin with the given hardware on a best-given effort basis.
Litecoin – It comes second to Bitcoin’s golden tales where it is fast, reliable and efficient which works more effectively with short-term transactions and day-to-day revenue expenditure. It uses the Scrypt algorithm and mines using ASIC software. Similar to Ethereum, it does not charge any maintenance fee and contracts are available for up to 24 hours.
Monero – Using an algorithm of CryptoNight, it makes an extensive use of ring signature to ensure that personal identities remain privately. It is built from scratch that is ensured to focus on 4 factors- users’ choice, adaptability, privacy, and decentralization. No maintenance charges are available and contracts for a 24 month periods are provided.
Zcash – Applying a financial system that is not strictly monitored and open, it provides an auto-trade while using a software called ‘Equihash’ algorithm. It provides, like Monero, a 24 month interval period contract with no maintenance charges.
Through GM, it is possible to earn numerous coins depending on the contracts purchased.
Example: Using the X11 contracts, you can mine coins such as Bitcoin, Litecoin, Dogecoin, Dash, Peercoin, Startcoin, and Namecoin. With SHA-256 contracts, you can mine coins such as Dash, Zetacoin, and Darkcoin along with Bitcoin and Litecoin.
Profitability will depend on numerous factors that are variable. The price of each coin, network difficulty and hash rate changes per day so it would be difficult to determine the profits sustainability throughout the months.
However, for a common user, profitability may seem unlikely to be achieved due to the hardware used but as science, innovations, and developments start to improve, it will lead to an increase in chances of earning profits via ASIC mining hardware.
GM employs cheaper hardware compared to the hardware in the market price. Considering the maintenance costs, storage of the miners are important as finding cheaper locations help GM to reduce the costs in terms of electricity. GM’s main aims towards the location of miners are to obtain cheap electricity supply or to avoid or reduce cooling.
It is common for users to pay for their own hardware and start mining but as research states, it is a tendency to forget few costs that need to be paid. It is an aim for GM to provide a better experience at a lower cost.
For SHA-256: Expecting payouts of 0.37mBTC per 1TH/s with a cost of 0.25 BTC per 1TH/s, therefore, expecting an estimated break-even at 650-670 days.
For X11: Expecting payouts of 0.0027mBTC per 1MH/s with a cost of 13.6mBTC per 1MH/s, therefore, expecting an estimated break-even of 500 days.
We have seen the perks of GM’s services and packages towards different cryptocurrencies but how is GM different from other cloud mining providers?
Apart from its feature of providing all the necessary hardware and software to mine, one peculiar feature of GM is that the users are being given the choice to purchase a certain hashpower, therefore, they can decide which coins they would want to mine. Thus, this will enable the user to split up the obtained total hash power and use it for different coins, therefore, provide flexibility in investments.
An interactive web interface that enables the users to easily set-up, monitor the bitcoin and altcoin mining farm. It is an execution towards the plan of managing the rigs.
This system was being developed early in order to increase the potential hash power efficiency and energy usage. Through this system, the mining operations set online can be expanded into niche digital operations. Providing a suitable user-friendly interface and experience, Genesis Hive interacts and engages with the users towards building a profitable Bitcoin mining experience.
Furthermore, Genesis Hive was built on the intention to survive the extreme threat of the market conditions, with this, it assists those who want to start earning bitcoin and serves as an overseer to give protection and guidance.
Programmers have built all the necessary features in a single dashboard with herculean filters and smart notifications. Improvements are still in the process, hoping to be more successful and effective for GM and the online community.
Due to security purposes and consumer protection, GM has only released ¼th of information related to their fields. Selling out critical information can lead to a disruption in authority and data information on Genesis Mining.
Enigma Ethereum Mine
Supporting smart contracts, these farms are designed specifically for the Ethereum project. Using the Skrypt algorithm, it mines via GPU (graphics cards) and built rigs to meet specifications.
Bitcoin Mining Facility
Using specialized hardware, it is designed to increase the efficiency of mining performance. With this currency, technology is constantly being updated and changed.
Dash Mining Facility
Utilizing the X11 algorithm, it processes data using GPU (Graphic Processing Units) mining hardware rather than ASIC devices which are being used up till today.
Comparison of Genesis Mining and other Cloud Miners
Claiming to be established around 2012, H.24 revealed their website around 2016. In particular, this company has no mining centers or data centers on their own but rather teamed up with a well-known provider BitFury where it leashes hashpower to the users. This provides trust and a good reputation amongst the users that the operation is legit.
Using the H.24 demo version, it helps in assisting the users in learning about mining and to see how much can be earned, but would not necessarily let the users gain profits but mainly used as a learning source.
Regardless of how the mining contracts are being purchased, H.24 charges a service fee of $0.00033 per GH/s per day. In addition, there is also a one-off revenue fee for purchasing hashing power with a certain host.
Hashflare offers you the option to purchase hashpower providing a variety of SHA-256 and Skrypt coins such as Bitcoin and Litecoin, Ethereum and Zcash. Users are being given the freedom to choose their own mining pool.
Offering variable fees such as they are $0.0035 per 10 GH/s of SHA-256 coins and $0.005 per 1 MH/s of Scrypt coins per day. These costs do not relate to Ethereum contracts but rather, payouts will be determined on the mining pool the user has chosen and how much hash power that must have been allocated to it.
Previously, mining contracts have been on an unlimited basis for a guaranteed hash rate but now offers are only provided towards the Bitcoin and Litecoin.Thus, creating a barrier for the user to earn profits from the original capital investment.
Launched in 2014 by Bitmain, Hashnest has mining farms located around the world thus taking advantage of low electricity. The website offers a PACMiC i.e Pay-out Accelerated Cloud Mining Contract. However, there are alternate methods which users can choose such as purchasing hash power from Antminer devices at a rate of around 125 TH/s while at the same time, paying for a fixed maintenance fee of around $0.19 TH/day.
Developed and registered in 2013, it provides a two-factor authentication where the user can access his/her account through a code sent through the mail with the password.
Eobot offers contracts from a 24 hour period to a 5-year interval. The website offers an estimator which calculates the daily profits after purchasing a certain amount of hash power. Maintenance fees are charged at $0.00021 GH/s per day and contracts are made available for all types of cryptocurrencies.
Providing a good cause for the public, Genesis Mining is finding innovative ways to create a gap between fraudulent scam sites and legitimate cloud providers.
One of their effective methods was to produce an all-access view in their mining operations naming the project: ‘Life inside a Bitcoin Mine.’ Such initiatives encourage users to feel safe and assured in knowing that if they are choosing the best option to invest in or not.
Editor in chief for BitCongress.org , Rose is based in Washington, D.C and has more than a decade of experience in the field of finance and trading.