Ninjastic
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Board Service Discussion
Re: Cloud Mining Journey (with Hashflare)
by
mghaynes
on 20/12/2017, 17:43:01 UTC

DAY 16
So here we are two+ weeks into the cloud mining adventure with Hashflare. The mining difficulty has increased and yesterday I only mined BTC0.0025 down from a previous average of about BTC0.003. However, this is basically inline with bitcoin profit calculators that now show 20 TH/s should mine about BTC0.02685 per day. You can see the recent history of my mining here: https://i.imgur.com/Q5OLhxo.jpg. As mentioned by others on this thread, ROI is always difficult to calculate based on the ever increasing difficulty. However, economists should love crypto mining - it's the ultimate perfect competition market. As profit increases, more and more people get into the business causing difficulty to rise. Ultimately, difficulty will chase price such that the most efficient miners (lowest electricity cost) are profitable and others are forced out of the industry.  Of course, the market is highly speculative which may allow some less efficient miners to stay in over time. What does this mean for cloud mining? Now is a booming time and I believe you can make money on cloud mining. In the future, if the Dash market is any indicator, I expect annual profit to approach the cost of a mining machine. Which means annual contracts will probably break even but not make any money. We can see this starting to happen now with increase in Hashflare price. I bought an S9 equivalent TH/s (13.5) for $1890. That same TH/s now costs $2970. After factoring in the maintenance fee, you will make profit with a 1-year contract with Hashflare as long as the difficulty stays the same (it won't) and the price of BTC stays over $5000 (it might). We know lots of TH/s will be coming on line over the next few months so difficulty will increase. BTC has run-up so fast it is inevitable to drop at some point, but by how much is anyone's guess.

The other topic to discuss is the Hashflare withdrawal policy. Now that I've hit the two week mark, I'm eligible to withdraw funds to my personal wallet. Yay! On my dashboard, I click the withdraw button and....find out I can't withdraw.  Undecided  https://i.imgur.com/eItW8ny.png. Hashflare has temporarily changed the withdrawal policy to require a minimum withdrawal of BTC0.2. That sucks. You can see the policy here:https://i.imgur.com/QRPo1QF.jpg. Looks like I'll be waiting for either Hashflare to change their policy or a couple months until I have BTC0.2. Interestingly, I feel less worried about this policy than I have previously about other moves by Hashflare. But stay tuned and I'll let you know how it turns out.