Bitcoin Mining with CloudHashing.com
Day One: On 12/4/2013 I went to www.cloudhashing.com to try out ASIC Cloud Mining.
I purchased the Silver Plan for $275.95 USD to get 4 Gigahash/s for one year.
Cloud Mining is where you buy a chunk of ASIC processing power for one year for one price and cross your fingers and hope that the cost of Bitcoin goes up enough and difficulty stays low enough for you to make a profit.
Cloud Mining Claim vs. ASIC Hardware Purchase
I wanted to test the waters without dumping in a lot of money and the best way to do that was to buy a Bitcoin Mining Claim on www.CloudHashing.com
Before I did that I looked at 3 different ways to make money with Bitcoin.
1. Buy Bitcoin and see if they go up (Speculate) I'm used www.Coinbase.com to buy 0.1 BTC just so I can say that I have some Bitcoin. Total investment: $110.00 USD.
2. Buy a mining rig and see if you can mine your own Bitcoin. I think that the days of easy mining are gone. It's hard to say if you can make your money back by the time your $5000 mining rig shows up 4 months after you pre-order it. (The difficulty goes up while you wait)
3. Buy a mining claim on someone else's hardware. In my case, CloudHashing.com. The beauty in doing it this way is that CloudHashing.com manages everything for you. I just pay my $275.95 and sit back for a year and watch. No Pools or software to worry about. Just give them your wallet address and they send you your Bitcoin.
My CloudHashing Estimates
So far I have been running for 9 days and I'm at .02 BTC, worth around $18 USD.
Cloudhashing will re-invest 30% of my earnings in faster hardware, so the Hash rate should go up over time to offset the change in difficulty.
If the 0.02 BTC / $18 is before the 30% reinvestment, then I should be earning around 0.042 BTC / $38/mo. after the 30% reinvestment. Over the span of my one year claim, that will come out to 0.504 BTC / $453/yr if Bitcoin is selling for $900 BTC.
In the website's FAQ they list the return on the Platinum plan to be estimated at 18.761 BTC over 2 years. Break that down into one year at 4Ghs and your looking at around 1.87 BTC. After the 30% reinvest that comes out to around 1.309 BTC or $1178. Not bad if it holds true over 12 months.
Genesis Block Mining Calculator Estimates:
Using the Genesis Block Mining Calculator it seems that I will not break even over the year, but there is no way to calculate the benefit of re-investment using that tool.
They show my return to be around $86 over 12 months with no profit past month 7. Ouch!
Here is the estimate for the Silver Plan: http://mining.thegenesisblock.com/a/bd883a0073
Should you Cloud Mine? Too early to tell. Check back for updates as this all plays out!
12/4/13 Initial Investment
0.1 Bitcoin at Coinbase = $110
CloudHashing Silver Plan = $284 ($275.95 + Tax)