Back at the end of 2017, I decided to give it a try to hashflare.io bitcoin cloud mining contract. I started small, bought some 0.2 TH/s hashing power. As of June 2018, I've increased the total hashing power to 1.52 TH/s.
Now, despite this is some serious increase in less than a six months - my earnings made on Hashflare.io have decreased gradually actually. Before calling Hahflare.io a scam site, I still believe the decrease has happened because of the increased mining difficulty and of course the huge loss of the bitcoin price has seen since the December 2017.
Hashflare has lowered prices for cloud mining contracts in 2018 several times, see: Hashflare Prices Lowered, Is Cloud Mining Profitable Right Now?
In today's article, I decided to compare is it still profitable investing in hashflare.io cloud mining contracts or probably it's easier just to buy and hold cryptocurrency directly from exchanges.
Disclosure: I'm not a financial advisor and I don't provide financial advice, instead I'm sharing my own experience or observations. Investments in stocks, funds, bonds or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
For today's article, I decided to calculate what would be the ROI for a $1,200 investment on Hashflare.io bitcoin cloud mining contract for a one year.
With $1,200 we could buy 15 TH/s hashing power (Back in April for the same money we could buy just 10TH/s). For further calculations, I will take live data as on June 2, 2018
- Payout per 1 TH/s = 0.00005639473
- Maintenance fee for 1 TH/s = 0.00004648026
Now, let's do the math (assuming nothing changes in a year)
- Payout 15*0.00005639473*365 = 0.30876114675 BTC
- Maintenance fee: 15*0.00004648026*365 = 0.2544794235 BTC
Profit: 0.05428172325 BTC
If converted back to USD with June 2, 2018 BTC/USD exchange value ($7,652.10) that would give us just $415.36, taking into consideration that bitcoin cloud mining contract would expire after one year - we have lost $785.
Now, these calculations are just for illustrative purpose as we don't know how mining difficulty will change and of course, we don't know the price for BTC in June 2019. Assuming that mining difficulty stays the same for the next 365 days, we should need to have BTC price at around USD 22,120 a year later just to break even. Not to speak about profit.
That said, bitcoin cloud mining contract from Hashflare.io doesn't look like a good investment in June 2018. And I doubt it will ever look so.