Please watch: 'ProfitTrailer - New Crypto Trading Bot - Best Auto Trading Bot - Better than Gunbot?' --~-- ► Follow Me On Twitter: ► Follow me on Steemit: ► Bitcoin Mining Profitability Calculator: ► Signup for Hashflare: ► Use My Code on Genesis Mining for 3% OFF CODE: teJSC0 ► Join us on Discord: ► ► Signup for Coinbase (Get $10): In today's video, I wanted to take a deeper look into how profitable Hashflare Bitcoin cloud mining contracts really are. We're going to be looking at how much Bitcoin you put into the cloud mining contract versus how much Bitcoin you profit from the contract. We're also going to be taking into account the rising difficulty over time so that our profit estimates are closer to being accurate. We will be using a Bitcoin profitability calculator that I created in Excel to assist in doing this.
Join hashflare if you want to get into cloud mining investing today! Due to the difficulty in forecasting both price and nethash, I was forced into a few assumptions. Instead of calculating just a base scenario (which every other calculator on the web does) I wanted to come up with different scenarios to get an idea of what.
In the past three years, difficulty on average has just about perfectly matched price. Right now price is actually beating difficulty by a wide margin. Since the beginning of october, sha-256 mining profitability has increased by a factor of three: Because difficulty is related to hashing power, and hashing power requires people to add new hardware, difficulty will always lag large upward price movement, simply because it takes time to produce, procure, and install new hashing capacity. The price on the other hand could double overnight. I would venture that profitability will remain in the $3 per THs range for the next 2-3 months, and slowly start to close the gap as the price grows more moderately into 2018. A 1TH/s contract including a year of maint fees costs $278.
So break-even would be $0.76/THs/day on average. So if the trends suggest that we will enjoy this elevated profitability for a short time and then it will start to moderate itself, the best strategy would be to reinvest aggressively for the next 2 months, taking advantage of the short term profitability to compound your principal, and then take profits as the difficulty peaks and slowly draws down. Of course this can be dynamically adjusted if trends change. If after a few month profitability still holds in the $2.50 per TH/s/day range, that would warrant continued reinvestment. Conversely, if the gap closely quickly, it would warrant taking profits sooner.
• • • • • • •. This 'math' is based on immediate value of selling. So yes, if you had used the same money to purchase 1.5 bitcoins you would have 'already made close to 2x profit' if you sold your coins. The point of mining is not to create fiat profit. The point of mining is to generate more bitcoin. • If you had used your 15k to purchase 1.5 bitcoins, then in 1 yr.
You'd still have 1.5 bitcoins. • By using the 15k to purchase a contract, in 1 yr. You'd have closer to 5BTC. Mining is a long-term holdings investment. If by the end of 2018 BTC is worth even double what it is now (lets assume 40k) you'd have different gains. • By spending your 15k on 1.5 bitcoins, you'd now have 60k USD in Bitcoin.
• By spending your 15k on contracts, you'd have 200k USD in Bitcoin.