Assalaamu Aleikum everyone. Many of you are wondering, should I cloud mine? And if so, should I use a popular cloud mining service like Genesis Mining or Eobot Cloud Mining? Today’s video blog post will take a look at both cloud mining services. I’ll share my Genesis Mining review along with Eobot as well.
If you’d rather not watch the review by video or read the blog post below, and you’d like to get straight to the answer of, should I cloud mine with either Genesis Mining or Eobot Cloud Mining, then the answer is, no. You should not cloud mine with either. Why? Because cloud mining with Genesis Mining or Eobot Cloud Mining is not profitable.
Now if you’d like more detail as to how I arrived at such a conclusion, then please take a look at the video below.
We’ll look at what both cloud mining services have to offer, the cost of their cloud mining contracts, how much Bitcoin they payout, cloud mining altcoins, and finally, my overall verdict on why I do not think you should cloud mine with either cloud mining service.
Again, you can watch the video or read the video transcript below. You can use the menu feature in the video to jump to different sections of the video insha’Allah.
Islamic Principle – Things are Permissible Until Proven Otherwise
As-salamu alaykum and thank you for checking out this latest video on Islam and Bitcoin. Today’s topic of discussion is Should I Cloud Mine. That seems to be the popular question so, we’re going to get into that today.
Now, keep in mind I am not going to address this from the Sharia aspects meaning is it halal or is it haram to cloud mine? I won’t do that. I won’t get into that aspect of it simply because I do not know. I do not know. I’m a student of knowledge, I’m learning. And once my knowledge of this subject matter grows if I find out differently, I would let you know.
However, with that being said, I am operating under the Islamic principle that things are permissible until proven otherwise. Things are halal and permissible until proven otherwise. This is the basic Islamic principle that we operate on and that is what I am doing here today.
So, as of now, no one has said that it is haram and I will make the assumption, I’m going off of that principle that it is permissible until proven otherwise. It is not for the Muslim to make things haram and then work backwards to try to figure things out. That’s not what we do in Islam. At the same time, this is a deen of ease, it’s not a deen of burden. We don’t make things unnecessarily difficult for ourselves.
At the same time, this doesn’t mean that we just are lazy in wanting to seek out knowledge and say, “Well, I haven’t heard anyone say it’s haram and I’m not going to do my part to study and find out. I’m just going to keep doing what I want to do.”
We don’t do that. It’s for the Muslim to simply operate on the principle that things are permissible until proven otherwise while at the same time, doing their due diligence to go and study and learn on the matter so, that they may not only benefit themselves but benefit others.
And this is the approach that I am taking and as I continue my studies in Islamic Finance, if I come to find out any difference, if I come to find out that cloud mining is actually haram, insha’Allah I will make another video and share that with you. It is not my intention to misguide you or myself – audhubillah (I seek refuge in Allah) astaghfirullah (may Allah forgive me). All right, so, with that being said, let’s get right into it.
What You Will Learn in Today’s Video
Now, as I’ve said in the past, I have experience with cloud mining. So, I thought it would be best to make this video, share my experience with you. For those of you, you brothers and sisters out there who are contemplating whether you should step into cloud mining or not. I think if I share with you my experiences, I hope that by doing so, this will be a benefit to you.
So, we know out there that there are a number of cloud mining services that are being offered. I’m taking a look at my notes right now and I see we have companies out there like Game Bitcoin, Genesis, Eobot, HashFlare, Hashing24, MineGate, MinerGate, BitMiner.
There are a whole lot of companies out there when it comes to cloud mining services and many of you are like, “Well, who’s good, who’s not? Who’s fake, who’s not? Who has the best prices? Who has the best rates? Where am I going to get the best return of investment?” So, insha’Allah my intention is to share with you my experience with the hopes that this will hopefully be of benefit to you and answers some of those questions.
So, today’s video is going to be rather long. So, I’m going to ask that you bear with me. It’s going to be a long video because I’m going to take a look at two cloud mining services in detail. Two cloud mining services in detail.
One of those services I have actually used and I’m going to share with you my experience with that particular on cloud mining service as well. So, let’s not delay any further. Let’s hop right into it right now. Let’s jump right in to the first cloud mining service that we’re going to cover today.
Eobot Cloud Mining Services
Ok. So, first up on the list is Eobot Cloud Mining Services. Here we are at their home page, you can take a look here and see all the cryptocurrencies that they cloud mine and I do think that is quite a bit actually.
Scroll on down the page and you’ll see here that they say that they have over 600,000 users. I do think that is a lot also. Let’s go ahead and log in and get to the dashboard page so we can actually see what is going on there.
Ok. So, here we are at our dashboard also called our Account page. And the first thing that you will notice is that the user interface is really clean and easy to understand and you can see all the different coins that you can mine for, Dash, Bitcoin, Ethereum, Litecoin, Zcash. Look here even Gold. You can even cloud mine for Gold, Subhan’Allah. Who would have thought that you can do that? But there you have it, gold it is.
If you go up top here you see where it says Mining and right next to it is BTC. This is to show you what you are currently mining for. At this present time, we’re mining for Bitcoin. Now, once you purchased your cloud mining contract with Eobot, you can change up what you would like to mine for anytime by simply selecting that coin in this dropdown menu. So, I’m going to click on Dash. We see now that it has changed what I am mining for; my focus is now on Dash.
Now, let’s just say you want to mine for a multitude of coins. You can click here on Diversify in the dropdown menu. And what this will do is – let’s see here, I’m going to select Bitcoin, Ether and let’s say Monero. Now, what this will do is it will go ahead and randomly choose one of these coins that you have selected and mine one of those coins randomly every 10 minutes. So, that’s pretty cool if you like to do that.
Eobot Account Page and Products List
Let’s go back to the Account page. Ok, so now we are back at our Account page. One thing I wanted to point out is that you’ll notice that you see the prices for the coins, the purchase price underneath the respective coin. This is showing you the price in real time. So, at the time of the making of this video, Dash sits at a little over 100 USD.
If you don’t want to see the currency designated in USD, it does have a few options here you can change out the – how the currency is shown on the page. BRL, I believe would be Brazil, so, you see here it is now changed out – how the currency is shown on the page and that’s pretty cool.
Another thing that you can do here is let’s just say you don’t know what a particular coin is. You know nothing about that coin. You can actually click on it and they actually have a page here where you can actually read up on what the coin is about.
You can see here they even have the home page that you can visit. They even will show you the market capitalization of that coin. And if you scroll on down, it will show you the market rates for that coin in different currency. Show you what the value of that coin is, the purchase price for that coin in different currencies. So, I think that is pretty cool and we go back to the Account page.
Let me go ahead and scroll down here. You will notice at the bottom of the page here you’re going to see a pie chart. This is showing you your portfolio and how many coins you have in your portfolio. Now, if you notice it says that BTC that my portfolio is made up of 91.4% Bitcoin and 8.6% Doge.
Now keep in mind I am not cloud mining with Eobot at this time. I’m not cloud mining at all with them. What happens is when you log in you automatically get Doge everyday just for logging in to the site. So, this just shows the Doge that I have received simply for logging into the site.
When it comes to BTC Bitcoin, again, I’m not cloud mining with Eobot. I’ve been able to earn, I can’t say earn, get Bitcoin by utilizing this right here, Faucet. And I’ll show you more about this later.
Right here, this is just showing you by a click of a button you can check out your deposits, withdrawals and everything else here that is on the ledger. You can even exchange between different coins so, that is, that’s what you can do here and that’s pretty much it for the– your Account page.
Let’s go ahead and take a look at the Product’s list. Ok. So, here we see all the services that they offer under the Products tab with Eobot. Let’s go ahead and click on Cloud Mining. Now, on the Cloud Mining page, here is what you will find all the information you need to know as to how cloud mining works with Eobot.
You see right here that you can purchase a five-year or a 24-hour cloud mining package with Eobot. So, you can mine for as long as five years or as little as 24 hours if you so, choose. You can also purchase a contract using Bitcoin or any of the cryptocurrency that they work with. You can even use a credit card to purchase your cloud mining package.
The cloud mining packages that they offer, again, they mention a five-year contract, you see that right here on their five-year contracts. This is how many contracts they have sold thus far. And this right here is showing the available supply of mining contracts they have that were mined at the SHA-256 algorithm. They have 2,600 contracts that will mine at the 4.0 TeraHash and 4000 contracts that mine at 3 TeraHash with the SHA-256 algorithm.
If you scroll down some more you will see they have a cloud mining calculator where you can go ahead and plug-in your numbers here, choose the crytocurrency of your choice and then they will provide you with an estimated daily payout that you will potentially receive. The same thing here, they will show you your potential estimated monthly payout with your mining contract.
Now, if you scroll down they give you more examples. So, here, this is showing you that if you mine with the SHA-256 algorithm at 3 TeraHash, let’s just say you purchased your mining package with Doge and you paid this amount. Well, then you can expect to receive this amount in your monthly mining payout. And it would take you this length of time, 100 months, just to break even. How about that?
Now, scroll down the page even more and you’ll see that it will give you another example again mining at the SHA-256 algorithm, this time using 4 TeraHash again, using Doge as our example. If you purchased your contract using Doge and you purchased this amount, then you can expect this amount here as your monthly payout and this would indicate how many months it would take for you to break even. Anything above this we can assume will be profit. All right?
Now, let me scroll back up the page and let’s talk a little bit about purchasing a contract using a credit card. Let’s click on that. All right. Now, one of the things that I do not like with cloud mining services is that you know when you’re purchasing using a bank or credit card, they ask you all of this information, all your personal information and I am not a fan of that.
It means that you cannot be anonymous. No, anonymity for you and the reason is because they have to follow AML and KYC compliance laws. AML simply stands for Anti-Money Laundering and KYC is Know Your Customer. Again, if you’re purchasing using a credit card, they’re going to ask you all of your personal information. I am not a big fan of that.
Let’s go back to Products tab. Ok, so, now let’s visit the Faucet link. And this is the page that will allow you to receive free Bitcoin. I know a lot of people like that. Let’s just go ahead and wait for this page to load. It should’ve been showing me some time of advertisement, but it did not. Hey, it is what it is. Ok, so, the Faucet is really simple.
All you’re going to do is it will pop-up and show you some information here and you will type in right here so, Taco Tuesday, that is what I need to type in. So, let’s go ahead and put that in, Taco Tuesday. And now let’s click on Get Faucet Reward and there you have it.
So, I was able– oh, Dash, they gave me Dash. So, oh that’s right because I selected Dash as my– as what I’m mining for. So, that is the faucet. It gave me the faucet in Dash. So, that was a surprise I didn’t realize it did that. And so, here that is it for faucet.
Let’s go ahead and take a look at another link. All right, so, now let’s take a look at My Pool and see what this is all about. All right so, Eobot offers you the opportunity to rent a cloud miner to join a mining pool.
Now, you can either utilize, you can mine a mining pool that Eobot runs or you can join another mining pool that’s independent of Eobot. Here are the respected contracts that you can purchase to do that.
And let’s just say you wanted to join a mining pool that was run by Eobot, you’d just go back to Products tab, go down to Pool Information and this is where you will find information that will tell you the different pools that are run by Eobot and they also provide you information on where you need to– what’s the servers that you need to point to in order to start mining with their mining pools.
So, again, you can utilize their mining pool or go independent and use your own. So, that is another option for you right there.
Let’s go back up to the Products tab, all right so, let’s take a look at the Redeem page and this should wrap it up for mining. We’ll talk about some other things. Now, the Redeem page, Eobot interestingly enough actually, it seems like they allow you to purchase mining rigs.
So, you can purchase a mining rig, it gives you the specs here what that rig is and they will go ahead and ship it to you, shipping and handling is free and yeah, once you get it, you can mine it in your own homes.
So, I guess there are people out there who are still doing that. Maybe they are mining old coins and not necessarily Bitcoin but I thought that was interesting that they offer you that option.
Ok, the only two that we haven’t talked about was Cloud SETI and Cloud Folding. Cloud SETI is where you’re able to install a particular software on your laptop and by running that software, you will be helping the SETI team or the Search for Extra Terrestrial Intelligence Team.
You’ll be having them for aliens. I don’t believe in aliens; I think that’s all a sham. But if you do that you will earn great coins for doing this. Let’s see, Cloud Folding is where you’re able to let’s say mine for Curecoin utilizing your computer as a tool to help Stanford University help find cures for Alzheimer’s, Huntington’s, Parkinson’s and different types of cancers.
Again, you would be installing a particular type of software on your computer and they will send your computer equations to solve and these particular equations help them do research when it comes to fighting these particulars cures.
Eobot Public Audit Page
So, let’s go now over to the Resources tab. All right, so, under the Resources tab, the only two links that we’re going to check out is Social and Audit. If we click out on Audit you will see here that they have a public audit page where they show you their account holdings of the cryptocurrencies that they have.
So, if you look up top here, they will show you the total number of Bitcoin they have in their holdings. This is how much they have in their hot wallet and this is how much they have in their cold wallet known as cold storage.
So, you scroll down, you see here they have 614 Dash total. Thirty-three (33) of those Dash sit in a hot wallet, 592 are in cold storage. So, that’s pretty good right there. You can click on this link here and it even takes you to the blockchain.info where you will see the total number of coins they have. Let’s see if we can– all right, so, they have 116 Bitcoins in cold storage. So, let’s go back here, all right so, that’s that page.
Let’s go back to the Resources tab and click on Social. Now this page is interesting. You are able to look at other people who use Eobot cloud mining services. So, if I was to click on let’s see, I want to pick somebody here, who should I click on? Let’s say I click on this let’s pick on the first person here.
We are able to see what this person is mining. mining Bitcoin, we’re able to see the total amount they have made so, far, 133 USD. If we scroll down, we can see that this person has 99% of their portfolio in Bitcoin, it says here they have 132 Bitcoin. That’s interesting, very interesting.
Let me go back to the social page. Let’s see I just want to click one more person to see if it shows anything different. Let’s click this person right here. So, we see this person is mining for Monero, same thing we look up here. Looks like- what is this? What currency is that? Is that Japanese, it must be Japanese.
So, yeah, and it shows here that they’re mining Zcash and Monero and Ether so, their wallets, I’m sorry, their portfolio is broken up into different cryptocurrencies and I think I don’t know what the term is for the Japanese currency but I think that is, Japan.
So, I think it’s a bit interesting that they would do that. I don’t know I don’t know if I mean again, no privacy, why would you want to show that? But hey, that’s what they’re doing with that Social link there.
Frequently Asked page is pretty explanatory, straight forward, they cover general questions for you. They also cover questions on cloud mining as well as software and miner questions, probably looking to do pool mining with them. So, that is that when it comes to Eobot.
Genesis Mining – Dashboard
So, let’s go ahead and hop into the next cloud mining services and this service I’ve actually used. So, let’s hop into that cloud mining service and take a look at that right now. Ok? So, we’re going to take a look at Genesis Mining.
This is the actual cloud mining service that I used. I’m going to go ahead and log in to my account. We’ll take a look around inside. I’ll share with you some of the features of Genesis and then talk a little bit about my experience with using Genesis Cloud Mining service. Let me go ahead and log in so, that we can get started.
Ok, so, we are not inside my dashboard page here at Genesis. The first thing you will notice is that the user interface is clean and easy to understand with your main tabs being here in the left column and everything else to the right. What you’re looking at here where you see it says Bitcoin, Litecoin, Zcash, et cetera, et cetera.
This is just showing you what contracts you have purchased with Genesis. If you notice here, you will see that everything is zeroed out so, zero (0) TeraHash for Bitcoin, same for Litecoin, Dash. Monero and all the other coins.
That is simply because I am not mining with Genesis at this moment so, everything is zeroed out. But if you had purchased a contract with Genesis, you will see numbers here that indicate the hashing power of your contract. Let me scroll on down the page.
Here are links for your Mining Allocation tab and if you want to upgrade your hash power, we are going to get into that in a little bit but I want to scroll on down here and let’s take a look at the earnings chart here for Bitcoin.
Your dashboard page will also show you what your earning payouts are, and they are denoted– denoted here in US dollars, I don’t know if that changes depending on your country. But for me here I’m seeing a USD.
If you look at this line here, we move across, you will see that it is pretty flat. No movement up and down whatsoever, and again, that is because I am not mining anything at this moment with Genesis.
But if I was, you would see some upward movement in that line indicating your daily payout. If you scroll down the page, we will see that you have earnings chart or charts for the other coins as well. So, Litecoin, you will see Dash, you will see if you scroll on down earnings chart for Ether which is Ethereum, Zcash and Monero, Monero as well.
So, your dashboard page will provide you, again, your earnings chart for your different currencies that you are mining as well they show you the contracts that you have purchased.
Genesis Mining Page
All right, let’s go ahead and take a look at the Mining Allocation tab. Ok, so, here we are at the Mining Allocation page. First thing I will do is close this as we don’t need that. So, on this page you will be able to choose your mining algorithm.
So, you see here you can choose Bitcoin, Zcash, Litecoin, and the like. We have Bitcoin selected so, if you are mining with the Bitcoin algorithm, you can scroll down the page and also take a look at other coins that you can mine using the same Bitcoin algorithm.
So, you see here we have Litecoin, Doge, Zcash, Dash. Now let’s just say you want to allocate your hashing power to a multitude of coins. You can do that with Genesis Mining.
So, what would you do is, let’s just say I want to also mine for Dash while mining for Bitcoin at the same time. I would take my cursor, put it over the zero there and hover it there and scroll the wheel on my mouse and change the allocation there.
So, 25% now is mining, being mined for dash, 75% for Bitcoin unless you say I wanted to add Zcash into the mix so, I’ll do the same thing, hover over that zero, scroll the wheel on my mouse. So, now, I’m mining 25% Zcash, 25% Dash and 50% for Bitcoin. So, that is an option with Genesis that you can do that and you can do that with other coins as well.
So, one thing you should know though is when you choose a mining algorithm, let’s choose Ether. Let’s choose Ether and let’s scroll down the page. You notice that when you choose an algorithm, it will then tell you what coins you can mine with that algorithm.
With Ether, you can only mine these three. It should be Ether, Bitcoin and Zcash, So, if I was to click on Monero, same thing, it will tell me what other coins I can mine using Monero and there you have it right in front of you.
Let’s take a look at Dash which uses the X11 mining algorithm, you’ll see here that you can mine a whole number of cryptocurrencies. So, Curecoin, Monero, Zcash, so, many coins, Litecoin, Bitcoin and of course Dash itself and obviously you can always as before change the algorithm amount, I’m sorry, the allocation amount of what you would like to mine.
So, there you have it, so, Genesis does allow you to pick a particular mining algorithm and then choose as we show down here the allocation amount that you would like to mine for the different coins of your choice.
Genesis Hash Power and Price
So, with that being said, let’s go ahead and move on over to Upgrade Hash Power. Ok, so, here we are at the Upgrade Hash Power page and this is where you are able to upgrade your hash power after you have purchased a cloud mining package with Genesis.
But I think I’m getting a little bit ahead of myself. So, let’s go back over to the Pricing page at Genesis to take a look at how much you would have to pay for a cloud mining package. Let me scroll down the page here by default, it seems like they have it as set, looking at Ethereum packages but we want Bitcoin.
Ok, so, here we go. Now, if you notice here, they have the Gold package, Platinum, Diamond and a Custom plan. All prices you see here are in USD. Now, let’s start with the Gold plan. If you start with the Gold plan at $30 USD you will get 200 GigaHash power.
If you bump it up to the next level at Platinum for 350 USD you get 2,500 GigaHash of power which really translates to 2.5 TeraHash. Now, if you want to go up a notch further, you’re looking at 1,950 USD, that’s almost 2,000 USD for 15,000 GigaHash which is 15 TeraHash.
Now, one thing that you always want to pay attention to is the hashing power. Whenever you’re looking to purchase a cloud mining contract you are always looking at the hashing power. Why? Because you want to make sure that whatever you purchase your hashing power would be enough to tackle the difficulty rate on the Bitcoin network.
So, let’s go over to Blockchain info. We’re going to look at the hash rate. Let’s see what is the current hash rate of Bitcoin network right now? Today is– what is today? Today is the 20… it’s showing that– I guess it’s the 23rd of March is the last update here.
So, on the 23rd of March, the hash rate on t the Bitcoin network was 4.1 TeraHash, 4.1. So, let’s go back here and look at this again. So, that means if you want to make, if you want to have any chance of earning a profit when it comes to mining, you need to make sure that your mining power, your hashing rate would be higher than 4.1. That is the only way that I see you’ll be able to make a profit.
Downside of Genesis Mining
So, obviously keep paying $30 USD for 200 GigaHash or even $350 for 2.5 TeraHash. This is not going to cut it. This is not going to do it. And this is one of the downsides that I see with Genesis. I just think their packages are just too expensive.
Who here are the average person is really going to spend close to 2,000 USD for 15,000 TeraHash? I just don’t think the average person is dropping that much money or has that much money to spend in cloud mining.
Now, you might say, “Ok brother, but let’s go over to the Custom Plan.” All right, well let’s do that. So, let’s just say we slide this across and you know we can choose what we want to spend. I think, I think most people will probably be able to afford 75 USD.
I think the average person maybe they will spend 90, Ok, maybe a little over 100, 105. As we can see here that still gives us 0.7 TeraHash. You still don’t even make 1 TeraHash.
Let’s just see how much you would need to spend to go beyond 4 TeraHash, come on, let’s keep– 5 TeraHash right there. Ok, 700 USD, 700 USD for 5 TeraHash power. I do not think the average person really has this much money to spend. So, therefore I do think it would be difficult to make a profit. I just think it would be difficult to make a profit with cloud mining with Genesis because of that.
But let’s go back and take a look at the page where we left off at the Upgrade Hash Power page. Now, let’s just say you purchased a contract. You’re good. You’re like, you know what? I spent my 700 USD and I’m mining a 5 TeraHash but let’s just see what happens, the difficulty rate increases and this is where you will, you come to this page and you will therefore select to upgrade your hashing power.
I will slide the bar across and we can see the number, the dollar amount changes above, Ok? So, right here, 300 USD and I’m going to purchase an additional 2 TeraHashes of power.
And again, the reason why somebody would do this is because they realized that the package that they purchased, the hashing power is not enough for them to make a profit with mining. So, therefore that person would then upgrade and pay more money for more hashing power.
I think this is a very dangerous position to be in because it could end up being that you put yourself into like a vicious cycle of putting in money to continuously upgrade your hash power and in the meanwhile the Bitcoin network, the hashing rate, the difficulty changes every 2,016 blocks.
I didn’t mention that. So, roughly every two weeks, every 2,016 blocks, this hash rate will change, the difficulty rate will change. Maybe it will go up, maybe it will go down.
But regardless it seems that, by and large, it continues to go up. So, you would therefore end up purchasing more hash power if indeed you realize that your current package is not making you a profit and like I said, I think you get into this dangerous circle of continuously putting money into purchasing more hashing power and you’re not able to make a profit. This is what I see is a downside to Genesis Mining.
But you know, let’s just say you’re fine with it and, who knows, maybe you might be that, maybe you’re that person making profits. So, hey, good for you. You can do the same thing here with Litecoin if you wanted to upgrade your hashing power, very self-explanatory like before.
You would pay this dollar amount here that we see and you would receive this amount of hashing power, you can look over to the right-hand column here. And once you move the bar over to your left, it will go ahead and indicate here your order summary of what you’re getting ready to purchase.
So, let’s just say I decided to upgrade my hashing power for Bitcoin and Litecoin over here it’s telling me that I’m spending 300 from Bitcoin, 780 USD to upgrade from Litecoin. I simply scroll down the page. I am able to purchase using a credit card, Bitcoin, Dash, Litecoin and Doge.
So, I can purchase using a credit card or with cryptocurrency. And yeah, like down the page as well you can upgrade your hashing power for Ether, you can do the same thing for Dash and Monero. So, there you have it when in comes to upgrading your hash power and also taking a look at the– the packages, the pricing packages when it comes to Bitcoin.
Payouts and Earnings
Now, let’s take a look at the Payouts. So, we can see what I earned when I was cloud mining with Genesis. Ok, so, here we are at my Payout page and this is where you will see the daily payouts that you will earn if you do have a cloud mining package with Genesis.
As we can see here, the last date that I receive the payout was on September 17th, 2015 in BTC, Bitcoin, and this was the payout amount right here. Now, if we look at this column, we notice here September 17th, if we move down the column, we see the 16th, the 15th, the 14th, 13th, 12th, 11th, going all the way moving backwards.
We see that each day I was receiving a payout in BTC and here in this column would be the payout amount. Again, going backwards, we can see each day my payout amount, generally speaking, was larger than the previous day. Some days were different. If you look at this day here my payout amount was larger than the day before. It was larger.
Now that’s– it doesn’t always happen that way. Normally, as we see the days move ahead, we move from the 9th, I’m sorry, September 9th to September 10th going the 11th. We notice that every single day, the payout begins to decrease, and why?
Because this means that the difficulty rate on the Bitcoin network increased and my cloud mining package, the hash power that I purchased was not able to keep up with the changing difficulty rate on the Bitcoin network, so my payouts were getting less.
Now, let’s take a look to see when I started mining, I’m going to go back, let me click on page seven, seven pages back, let’s go 10 pages back, 10 pages of transaction or payouts. 13 let’s go back– just bear with me as I go all the way back here.
All right let’s go to 16, scroll down, 19 pages back- Ok, and 22 should be the end. Ok, let’s do this 22, all right there you go. Ok, so, if we see here, October 24th, 2014 that was the first day I started my cloud mining and again payout was in BTC and this was the amount.
And if you go back and look at my last payout, we will definitely see that this amount is higher more than my last payout. I’m going to go up one page here just to show you something.
Now, remember we talked about with Genesis it provides you the option of allocating your hashing power so, you can mine other currencies. Well back in the day, if you notice here, you see where the address where it starts with L then the next, the next one starts with 1, L is Litecoin, 1 is Bitcoin so, I was mining both for Litecoin and Bitcoin back in the day.
So, yes, you can just see as you look on down it every single day, I was getting a payout in Litecoin and Bitcoin. Let me bounce back or jump back to the very last day of mining, my cloud mining. Again, being September 17th, so this lets you know that I was cloud mining for almost one entire year.
Almost one entire year I was cloud mining for and as you can see, everyday I received a payout, it diminished as time went on. And again, that happened because of the difficulty of the Bitcoin network.
Ok, so, that should do it for Genesis. So, that wraps everything up. I think we– I was able to show you all the key important things you need to look at and pay attention to when it comes to Genesis. Now, what I would like to do is sort of wrap everything up and just give you my overall take of cloud mining.
Pros and Cons with Eobot and Genesis
Ok, so, there you have it. We took the time to cover Eobot and Genesis Mining. Insha’Allah getting in to the nitty gritty of it all, hopefully you found that beneficial. Now, let’s talk about the pros and the cons.
As for the pros, the positives of cloud mining is, number one, you don’t have to own the mining rig, someone else can own it for you. Number two, you don’t have to run up your electricity bill. Number three, your home won’t be blazing like a volcano with all the heat from all those mining rigs running in the background, in your house there.
The other thing is you get to mine for all these different altcoins and it even gets to mine for gold, Subhan Allah, gold. So, those are all the positives. Those are the pros when it comes to cloud mining.
So, now, if somebody comes to me and says, “All right, brother, well, with that being said, if you have to do it all over again, would you cloud mine? Would you do it?” I would say to that person, “No. I would not.”
And the reason being and this is where we get into the negatives, the cons of cloud mining. The reason why I would not cloud mine again is because number one, reason number one, is I think it’s too difficult to make a profit. I think it’s too difficult to make a profit.
My experience with Genesis Cloud Mining was that I wasn’t able to make a profit. Never mind make a profit, I wasn’t even able to break even. I didn’t even break even. And I think, I just think I just don’t think you’re going to make a profit with cloud money.
If you have that much money to put in to cloud mining, just go ahead and buy the Bitcoin outright. I have had more success in purchasing Bitcoin outright than cloud mining.
So, number one, I think it’s too difficult to make a profit in cloud mining so, that’s why I wouldn’t do it. Reason number two, the second negative or the second con, the second reason why I wouldn’t cloud mine again is because there’s no such thing as profit loss sharing.
And what do I mean by that? I mean let’s just say you are to purchase 700 USD contract for 5 TeraHash. So, you purchased your contract and you’re mining and let’s just say, the difficulty of the Bitcoin network jumps up to 7, 8 TeraHash meaning that your 5 TeraHash mining contract, your cloud mining contract is obsolete, it’s not doing you any good.
It’s not like the company turns to you and says, “You know what? We know that you purchased a 700 USD cloud mining package, about $500 worth of your package you’re really made some profit. You made profit, we made profit.” Because keep in mind, these companies are also making– they’re making money off of you when you purchase their services.
So, it’s not like the company says, “Ok, at the $500 mark you made money, we made money and you know what, we’re going to give you $200 back because your cloud mining package now is obsolete. It’s not doing you any good.” They don’t do that. What do they do? They keep all the money.
If the difficulty rate goes so, high that your cloud mining package becomes obsolete, they keep all the money so, you lost, you lost. So, this is the second reason why I wouldn’t cloud mine because there’s no such thing as profit loss sharing. It would much better if you did that. We both make money and we’re happy. But that’s not the case.
Third reason why I wouldn’t– I would not cloud mine is because at the end of the day, at the end of the day it could all be a Ponzi scheme, really. It could all be a Ponzi scheme. At the end of the day, you and I don’t know if these companies really exist and they’re doing what they say that they are doing.
Unless you and I are there to like you know go to that company, open up that door and take a look around and see if they got you know cloud mining rigs in there, oh, I see one there, or one there as well. Unless you and I can do that, we are none the wiser, we’re going on trust. It is all trust.
And for all we know, some of these companies maybe many of these companies can simply be collecting money from a multitude of people and when they said that they’re giving you your daily payout, they’re just giving you a little bit of money back from somebody else and keeping the rest as a profit.
Heck, it could be that they’ve given you your own money back. They might be giving you your own money back, little by little, drop by drop and then at a certain point say, “Oh, I’m sorry your cloud mining services is obsolete, we’re keeping the rest of your money.” It could be a Ponzi scheme.
But don’t take my word for it, I want you to check out these video clip from a– I call this person a Bitcoin guru. His name is Andreas Antonopoulos. Andreas Antonopoulos. So, I want you to check out this video clip and see what he has to say about cloud mining services.
I just don’t want you to take it from me. I want you to hear from someone else who is a professional in the Bitcoin arena. So, let’s check out this clip real quick.
Female Speaker: If the invasive mines and actually making money from the mining, then it’s from the laity because people can either buy their own hardware and do mining or they join up with larger organizations, we’ve got fastest machines in gray houses prices saying and type of share in a month. And the…
Andreas Antonopoulos: Yeah, 95% of cloud mining schemes are scams. They are straight up Ponzi schemes. And the reason is there is no effective way to prove whether the money you’re making comes from the mining share that you’ve invested in or simply from the money that the people after you are investing into the same scheme, which is what a Ponzi is.
Cloud mining in itself is almost always a Ponzi. I have not seen a single one that I will trust yet and I’ve seen hundreds of examples of them collapse. So, if they’re making money from mining, but they’re not actually running any hardware, they just put some money in and money keeps pouring out every month, I would take a 95 to 5% bet on that myself that it’s a Ponzi scheme.
Female Speaker: Yeah.
Male Speaker1: Because they just keep on selling mines, off the good of- you’re mine, you’re saying you’re making money, you’re putting out the good word that you’re making money and it’s probably got a value of two mines to one. So, every two people that did buy a new mine, the payout is like a premium.
Andreas Antonopoulos: Right. It’s the greater fool. It’s the basis of all Ponzi schemes as long as you can find greater fools to join on the backend to promise the same returns that the previous people made. So, yeah, if it was very easy to do this and you put money in and risk free, you’re making money every month that should raise a gigantic red flag in your mind.
Male Speaker1: A word to the wise might be, not, GET OUT RIGHT NOW! But, you know, like, be aware of what’s likely down the road. Make money…
Andreas Antonopoulos: They run out of greater fools…
Male Speaker1: Well, make money while you can.
Male Speaker 2: But you’re making money at the expense of a greater fool. I wouldn’t engage in that at all. You know it doesn’t matter that you’re making money at the expensive of…
Male Speaker1: Yeah.
Male Speaker 2: Yeah.
Male Speaker1: Yeah.
Female Speaker: Yes.
Male Speaker2: All right, good question and I think that applies to…
Andreas Antonopoulos: Yeah,and that’s one of the things that I’ve realized through my visits here in Southeast Asia has been that Ponzi schemes, pyramid schemes, multilevel marketing schemes are much, much more prevalent here than there are in the West.
And part of the reason for that is because investors with experience of sniffing those things out in the West have 50 years of experience.
In the East, investments by the middle-class and consumers is relatively new and so, that experience doesn’t exist. Unfortunately, the only way to learn that lesson is by being burned yourself through investing in one of these schemes. And people are gradually learning that. That makes them very profitable, these scams.
Male Speaker2: Yeah, I can back up anecdotally, we have our Bitcoin 101 class in English and then we also have it in Indonesian. And when we had the class in Indonesian, lots and lots of people show up with these questions about this mining pool or this coin or this you know we have that MMM thing going on for a while and now OneCoin, and it seems to be much more per capita prevalent in the Indonesian-speaking population so…
Well, there you have it from the Bitcoin guru himself and that is going to conclude our video for today. Insha’Allah you found the video of benefit. Any good whatsoever that you have found in this video all that is from Allah Subhanu Wa Ta’ala. Any mistakes or errors in this video is all on me, astaghfurlah, I ask that you make du’a for me and forgive me.