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RE: [ANALYSIS] Genesis Mining "lifetime" BTC Cloud Mining Contracts
Great post. What do you think about the company? They have the biggest network of current generation graphic cards in the world and buy everything they get from nVidia and AMD I heard. That makes one heck of a super computer and it is quivkly growing. They could switch from mining to AI one day and would be market leader. Sadly these contracts will end when the mining ends. So all the current customers will be left out in that case.
I think they are legit. Genesis Mining is a real company with great infrastructure; however their contract offers might fool customers. (again, this is normal in business - every party secures its own benefit)
Regarding AI, I believe software is much more important than hardware to develop an AI. Google leads the way as well as Amazon because they "own" the vast amount of data that is needed for the Machine Learning algorithms.
Everyday a new currency is getting created so, when BTC or ETH mining is over, I'm sure they'll find something to make use of the hardware. Plus, they will have earned their USD investment back for a few times until then ^^
What do you mean with the contract? The fact that they can cancel when it is not profitable anymore?
They offer multiple contracts that allow you to mine a group of similar coins. Currently, BTC, ETH and XMR contracts are available. ETH is a fixed - 2yr contract, not sure about XMR.
BTC on the other hand is a 'lifelong contract' - many people are fooled by this and dont consider the fineprint. Genesis charges a maintenance fee of $0.00028 per 10GHs - which means if the difficulty rises too quickly and BTC price drops - your earnings may dip below the maintenance fee. If this happens - your contract will essentially be in hibernation until a rise in BTC price or a fall in difficulty result in your mined output being higher than the maintenance fee.
If your contract stays unprofitable for 60days (pl confirm), it will be voided
I must say, I am not very convinced about this business model. Everyone is hyped up about that because we all can see how much people like CryptoNick or BoxMining are making there. But that is just thanks to the referral program. I don't know, I am torn between liking Genesis-Mining and having a bad feeling about it.