Scam alert : Do NOT INVEST in Genesis Mining

[Panda Trump]

This is an absolute scam I fell for.

The way they do it is that they're in bed with this calculator (which is the top result if you search for cryptocurrency mining in google):

https://www.cryptocompare.com/mining/calculator/eth?HashingPower=80&HashingUnit=MH%2Fs&PowerConsumption=140&CostPerkWh=0.12

This calculator does not adjust for the block difficulty increase, which is almost constant and can be easily predicted, instead, their calculation is correct for the first day only. And they just multiply that by 7, 30 and 365 to calculate the returns for weekly, monthly and yearly mining respectively. That's absolutely not correct, and would not happen.

My payouts decrease by 20% in 10 days. if it goes like this I will end up with less than half the either I would've been able to buy on day one for the same price as the mining power I purchased. You might be able to make profit in dollar terms, but your profit would be far larger if you just buy the currency you're mining and just sit on it.

I emailed them about a refund. and I got this reply:


<quote>"We are sorry to tell you that we do not accept refunds as stated in the clause 4 of your signed agreement. We do not issue refunds also because we have invested your payment in mining infrastructure. Investing in cloud mining is not without risk and we expect our customers to be aware of that and do their own research before purchase.

Thanks for your understanding. "</quote>

I guess that's some money down the drain.

Too bad 
I also almost fell for it, when I first saw Genesis Mining, but then I did some research on it and calculated my expected returns and read some detailed reviews. That kept me from investing in it luckily 

Thanks for telling your story here though, as it may keep other people from being scammed.

Regards,
Trump

[1713905666]

1713905666

[1713905666]

1713905666

[1713905666]

1713905666

[Rogerdale]

This is an absolute scam I fell for.

The way they do it is that they're in bed with this calculator (which is the top result if you search for cryptocurrency mining in google):

https://www.cryptocompare.com/mining/calculator/eth?HashingPower=80&HashingUnit=MH%2Fs&PowerConsumption=140&CostPerkWh=0.12

This calculator does not adjust for the block difficulty increase, which is almost constant and can be easily predicted, instead, their calculation is correct for the first day only. And they just multiply that by 7, 30 and 365 to calculate the returns for weekly, monthly and yearly mining respectively. That's absolutely not correct, and would not happen.

My payouts decrease by 20% in 10 days. if it goes like this I will end up with less than half the either I would've been able to buy on day one for the same price as the mining power I purchased. You might be able to make profit in dollar terms, but your profit would be far larger if you just buy the currency you're mining and just sit on it.

I emailed them about a refund. and I got this reply:


<quote>"We are sorry to tell you that we do not accept refunds as stated in the clause 4 of your signed agreement. We do not issue refunds also because we have invested your payment in mining infrastructure. Investing in cloud mining is not without risk and we expect our customers to be aware of that and do their own research before purchase.

Thanks for your understanding. "</quote>

I guess that's some money down the drain.

This was your decision to buy ETH mining contract. Ethereum is transitioning to PoS, time bomb is already in place and doing its job. Moreover, total hashrate increased twice in the last month. There is almost no chance for ETH mining contract to ROI. 100 MH/s 2 year contract will earn something between 3.4 (if ETH price soars) to 7.5 (if price remains the same) ethers and will not fully ROI (in ETH at least, maybe in dollars you will get your ROI).

This is not because GM is a scam, this is because you should do a research before buying.

[Panda Trump]

This is an absolute scam I fell for.

The way they do it is that they're in bed with this calculator (which is the top result if you search for cryptocurrency mining in google):

https://www.cryptocompare.com/mining/calculator/eth?HashingPower=80&HashingUnit=MH%2Fs&PowerConsumption=140&CostPerkWh=0.12

This calculator does not adjust for the block difficulty increase, which is almost constant and can be easily predicted, instead, their calculation is correct for the first day only. And they just multiply that by 7, 30 and 365 to calculate the returns for weekly, monthly and yearly mining respectively. That's absolutely not correct, and would not happen.

My payouts decrease by 20% in 10 days. if it goes like this I will end up with less than half the either I would've been able to buy on day one for the same price as the mining power I purchased. You might be able to make profit in dollar terms, but your profit would be far larger if you just buy the currency you're mining and just sit on it.

I emailed them about a refund. and I got this reply:


<quote>"We are sorry to tell you that we do not accept refunds as stated in the clause 4 of your signed agreement. We do not issue refunds also because we have invested your payment in mining infrastructure. Investing in cloud mining is not without risk and we expect our customers to be aware of that and do their own research before purchase.

Thanks for your understanding. "</quote>

I guess that's some money down the drain.

This was your decision to buy ETH mining contract. Ethereum is transitioning to PoS, time bomb is already in place and doing its job. Moreover, total hashrate increased twice in the last month. There is almost no chance for ETH mining contract to ROI. 100 MH/s 2 year contract will earn something between 3.4 (if ETH price soars) to 7.5 (if price remains the same) ethers and will not fully ROI (in ETH at least, maybe in dollars you will get your ROI).

This is not because GM is a scam, this is because you should do a research before buying.

Genesis Mining wouldn't have given him ROI anyways.

As a wise man once said:
They aren't made to make you ROI. They are made to make them ROI.

Let's face it: Cloud Mining Company, Attractive Name and Incorrect Stories... You're calling it his own fault and not the scam's?
So if someone steals $100 from you, it is your own fault that you didn't have the money in a built-in safe, protected by multiple locks and that it was your fault you didn't have a heat-detection system in your house? Would it then be your fault that some burgler came in and took your precious $100?

[Rogerdale]

Let's face it: Cloud Mining Company, Attractive Name and Incorrect Stories... You're calling it his own fault and not the scam's?
So if someone steals $100 from you, it is your own fault that you didn't have the money in a built-in safe, protected by multiple locks and that it was your fault you didn't have a heat-detection system in your house? Would it then be your fault that some burgler came in and took your precious $100?

Ok, go find better deal for ETH cloud mining. 100 MH/s costs $2715 with discount. If you build your own mining rig and run it for 2 years that would cost you:
1) 4 GPU cards. Now each such card costs $400.
2) Motherboard, CPU, power unit - $400 more.
3) Electricity costs. That will be 800 watt for 2 years - about $1400 if kwh costs $0.1.

Total cost is $3400. At genesis you can run same rig at $2715.

It's not their fault that ETH difficulty rises that much.

You can equally say that banks are scam because they request you to pay interest on credit card loans much higher than US Fed rates, and therefore steal money from your pocket.

[suchmoon]

Ok, go find better deal for ETH cloud mining. 100 MH/s costs $2715 with discount. If you build your own mining rig and run it for 2 years that would cost you:
1) 4 GPU cards. Now each such card costs $400.
2) Motherboard, CPU, power unit - $400 more.
3) Electricity costs. That will be 800 watt for 2 years - about $1400 if kwh costs $0.1.

Total cost is $3400. At genesis you can run same rig at $2715.

It's not their fault that ETH difficulty rises that much.

You can equally say that banks are scam because they request you to pay interest on credit card loans much higher than US Fed rates, and therefore steal money from your pocket.

Bull shirt.

A decent R9 380 4GB could be found for ~$120 on eBay a couple of months back. Maybe $160-180 today. I'm pretty sure there are better price/performance options, just using this as an example because most of my own setups are low density 380 or 970.

I'm still running some GPU rigs from 2014-2015 and can sell them for ~40-50% of what I paid for them, so this two year contract is a total rip off since GPUs don't disappear after two years, nor do they disappear when ETH is no longer profitable.

[Glucose]

Ok, go find better deal for ETH cloud mining. 100 MH/s costs $2715 with discount. If you build your own mining rig and run it for 2 years that would cost you:
1) 4 GPU cards. Now each such card costs $400.
2) Motherboard, CPU, power unit - $400 more.
3) Electricity costs. That will be 800 watt for 2 years - about $1400 if kwh costs $0.1.

Total cost is $3400. At genesis you can run same rig at $2715.

It's not their fault that ETH difficulty rises that much.

You can equally say that banks are scam because they request you to pay interest on credit card loans much higher than US Fed rates, and therefore steal money from your pocket.

Bull shirt.

A decent R9 380 4GB could be found for ~$120 on eBay a couple of months back. Maybe $160-180 today. I'm pretty sure there are better price/performance options, just using this as an example because most of my own setups are low density 380 or 970.

I'm still running some GPU rigs from 2014-2015 and can sell them for ~40-50% of what I paid for them, so this two year contract is a total rip off since GPUs don't disappear after two years, nor do they disappear when ETH is no longer profitable.

+ you can sell yourself the rigs you used for mining... So it lowers the cost...

[Rogerdale]

A decent R9 380 4GB could be found for ~$120 on eBay a couple of months back. Maybe $160-180 today. I'm pretty sure there are better price/performance options, just using this as an example because most of my own setups are low density 380 or 970.

I'm still running some GPU rigs from 2014-2015 and can sell them for ~40-50% of what I paid for them, so this two year contract is a total rip off since GPUs don't disappear after two years, nor do they disappear when ETH is no longer profitable.

Good luck in building and maintaining your own mining rig (and finding GPU cards of $160-$180, give me a link if you find one).

R9 380 4GB gives only 17 MH/s on Ethereum mining, by the way: https://www.cryptocompare.com/mining/sapphire/radeon-r9-380-ethereum-mining/ so you need 6 of them to get 100 MH/s and you would pay more for electricity.

If you go to a broker and buy a stock, and next month the stock crashes, would you call it a scam (the broker obviously knew it will crash, isn't it)?

[suchmoon]

A decent R9 380 4GB could be found for ~$120 on eBay a couple of months back. Maybe $160-180 today. I'm pretty sure there are better price/performance options, just using this as an example because most of my own setups are low density 380 or 970.

I'm still running some GPU rigs from 2014-2015 and can sell them for ~40-50% of what I paid for them, so this two year contract is a total rip off since GPUs don't disappear after two years, nor do they disappear when ETH is no longer profitable.

Good luck in building and maintaining your own mining rig (and finding GPU cards of $160-$180, give me a link if you find one).

R9 380 4GB gives only 17 MH/s on Ethereum mining, by the way: https://www.cryptocompare.com/mining/sapphire/radeon-r9-380-ethereum-mining/ so you need 6 of them to get 100 MH/s and you would pay more for electricity.

If you go to a broker and buy a stock, and next month the stock crashes, would you call it a scam (the broker obviously knew it will crash, isn't it)?

I don't need luck, I've been doing this for years. I'm not even trying that hard, running mostly stock in low density setups, 4-5 cards per rig.

R9 380 does ~20-22 MH/s on stock settings, some can be overclocked to 25+ if you know what you're doing. Cryptocompare is not the site for that kind of info.

Plus you can get extra DCR with Claymore's miner.

Here is one for $175 + shipping: http://www.ebay.com/itm/PowerColor-PCS-R9-380-4GB-Great-Condition-/253014789947

Funny how you completely ignored the resale/residual value issue. Basically you're gifting 40-50% to Genesis on top of the already overpriced hashrate.

Genesis Mining is not a broker, and if a broker was selling stocks with a 100% markup that wouldn't be kosher either. Get your analogies straight. It's a horrible overpriced piece of crap you're shilling here.

[Rogerdale]

Genesis Mining is not a broker, and if a broker was selling stocks with a 100% markup that wouldn't be kosher either. Get your analogies straight. It's a horrible overpriced piece of crap you're shilling here.

Bitmain at Hashnest sells S9 miners with 20% markup (and takes all tx fees from mining) and sells L3+ miners with 150% markup. Mostly these miners are out of stock, but when they were in stock last time, S9 cost was $1400 (retail price with PSU is about $1200) and L3+ cost was $3600 (retail price with PSU is $1500). Is Hashnest scam?

Hashflare sells Litecoin hashrate at $13.5 price per 1 MH/s and sells 1 year ETH contract at $2200 per 100 MH/s. None of these will be profitable for investors. Is Hashflare scam?

According to you every cloud mining site is a scam.

[suchmoon]

Genesis Mining is not a broker, and if a broker was selling stocks with a 100% markup that wouldn't be kosher either. Get your analogies straight. It's a horrible overpriced piece of crap you're shilling here.

Bitmain at Hashnest sells S9 miners with 20% markup (and takes all tx fees from mining) and sells L3+ miners with 150% markup. Mostly these miners are out of stock, but when they were in stock last time, S9 cost was $1400 (retail price with PSU is about $1200) and L3+ cost was $3600 (retail price with PSU is $1500). Is Hashnest scam?

Hashflare sells Litecoin hashrate at $13.5 price per 1 MH/s and sells 1 year ETH contract at $2200 per 100 MH/s. None of these will be profitable for investors. Is Hashflare scam?

According to you every cloud mining site is a scam.

Two (or three) wrongs don't make a right.

And I didn't say "scam", I said "horrible overpriced piece of crap". I think the worst thing I've ever said about Genesis was something along the lines of "smells like scam". Perhaps the "scam" part could be argued, although they don't provide proof of mining so there's that. But the "overpriced piece of crap" part is a fact, no matter how many fallacies you try to invoke denying it.

[chiRal]

I have read through this entire thread and am not convinced Genesis mining is a scam. Yes there is a premium, but that premium translates to an ease of life trade off.

I just spent $7k USD on Genesis mining, across various things.

Everyone is complaining about the exorbitant fees, lets have a look at my bitcoin purchase:

10  TH
Cost: 1400 USD
On current difficulty, number of coins mined per day: 0.003533 (https://bitcoinwisdom.com/bitcoin/difficulty)
Cost per day (USD): 0.00028*10*10000 = $28 USD
Current Price of BTC: 2549.34
Current earnings per day: Current Earnings (0.003533*2439.34) - Cost per Day

= $90.0681822 - $28
=$62.0681822

Number of days to make back investment: 22.55584021 days (at current difficulty and BTC price)

I anticipate the BTC difficulty to remain stagnant or slightly decrease.

If the price of BTC goes up, it's better.

When we compare this estimate to what the cryptocalculator says:

Estimated earnings: $3287.62 USD per year
Estimated earnings minus costs: 22654.8865 USD per year

Still above the amount I invested for it ($1400).

What is everyone complaining about?

[Rogerdale]

What is everyone complaining about?

Your calculations are wrong. You earn 0.003533*2550 = $9, not $90. And you will earn $9 - $2.8 = $6.2 per day and payback period will be at least 225 days (actually that depends on difficulty and price).

[chiRal]

Yes I agree, sorry had an extra 10 multiplier in my spreadsheet.

However, it's not too bad..

Yes the costs are high but as long as I don't go under my break even (which should be a BTC price of around $900) should be good for a long time to come.

[Glucose]

Yes I agree, sorry had an extra 10 multiplier in my spreadsheet.

However, it's not too bad..

Yes the costs are high but as long as I don't go under my break even (which should be a BTC price of around $900) should be good for a long time to come.

Problem is you don't take the rising difficulty into account in your calculations. This will probably multiply your ROI time by 2 or 3.

[Isaaq.Almaguer]

That is true! Do not invest guys! I've been bitten by this company! And after a long back and forth through email they refused to give me any sort of refund.

[MrHarribalsonya]

Sure, i can understand if you spent $50usd and you thought you were going to be living the high life in three month's. You would be pretty pissed when your not.

If your lazy expecting to put in no work and get all the reward then you obviously havent been paying attention to the strategy for using the system to your advantage.

Short term investers are better looking somewhere else. This takes discipline and consistency. If your not snowballing every payout back into genesis for the first 5-6 month's then your doing it wrong.

Gensis mining is only ment for the aggressive investor's like myself any many others who still haven't stopped upgrading once whatever goal we set at first is met. You don't quite your job the first month, second, third, etc.... Wherever people are getting this ROI overnight idea is ridiculous. This is a long term investment in bitcoin. This is a dedication to the blockchain itself and a dedication to maintaining it. But if money is all you're concrned about. Then the secret sauce is clear. You remain profitable only if you properly upgrade your hash power to meet the increasing difficulty of mining. Period... Whether you do it at genesis with the worlds largest known documented super computer or at home upgrading every 3-4 months as necessary by increasing difficulty.

It's sad people even need this spelled out.
Over 200TH/s in 4 month's. Now upgrading 50TH/s every 2 weeks forever. 

Tell me it's not profitable? It's a scam? 
Then stay on the sidelines, more contracts for us in the game. 

[Glucose]

Sure, i can understand if you spent $50usd and you thought you were going to be living the high life in three month's. You would be pretty pissed when your not.

If your lazy expecting to put in no work and get all the reward then you obviously havent been paying attention to the strategy for using the system to your advantage.

Short term investers are better looking somewhere else. This takes discipline and consistency. If your not snowballing every payout back into genesis for the first 5-6 month's then your doing it wrong.

Gensis mining is only ment for the aggressive investor's like myself any many others who still haven't stopped upgrading once whatever goal we set at first is met. You don't quite your job the first month, second, third, etc.... Wherever people are getting this ROI overnight idea is ridiculous. This is a long term investment in bitcoin. This is a dedication to the blockchain itself and a dedication to maintaining it. But if money is all you're concrned about. Then the secret sauce is clear. You remain profitable only if you properly upgrade your hash power to meet the increasing difficulty of mining. Period... Whether you do it at genesis with the worlds largest known documented super computer or at home upgrading every 3-4 months as necessary by increasing difficulty.

It's sad people even need this spelled out.
Over 200TH/s in 4 month's. Now upgrading 50TH/s every 2 weeks forever.  

Tell me it's not profitable? It's a scam?  
Then stay on the sidelines, more contracts for us in the game.  

Yeah yeah noobie with 1 post you are the only genius who understands how to make profit with them. Get the fuck away GM puppet.

It's a scam, and it's not profitable.

[tbonetony]

Over 200TH/s in 4 month's. Now upgrading 50TH/s every 2 weeks forever. 

Tell me it's not profitable? It's a scam? 
Then stay on the sidelines, more contracts for us in the game. 

Why are you so lame at 50TH/s biweekly? GM Crusaders like you deserve 50TH/s *EVERY* day I would say is the least.

Don't worry, you can, and should, take *ALL*, not just more, contracts. Should you live highly to the moon.

I am a lowbie, so I will only pray for you to fly to moon.

[socialengaged]

ok, im new here and in genesis mining. i dont really think they are scam, but ive read many forums that says so. I made then calculations (that actually show how non convenient is to invest in cloud mining those days). In genesis I purchase
1mh ether mining 2 years contract, and today i get 0,0003eth = 0,05 usd per day
this means at the end of year 2, i get 36 usd. so 6 usd profit, after TWO years.
Also, there are no really clear clues on how much i spent, and how much im gaining really (%, loss, etc). So this is very unclear report and analytics, which misleads users.
im also an affiliate marketer, and i find more convenient those other affiliations (like CPA).
also, i tried https://demixmine.com/?ref=sM19rc, and it seems MUCH more profitable than genesis mining (i get like 12usd per day with an investment of 300usd in total).
Basically, I spent more investing in genesis mining (cause of all that youtubers out there) then demixmine, but maybe it was worth to invest there all of that money.
One final thought in general about cryptocurrencies and blockchain. As said im a newby. But i see that the problem here (also for mantaining the blockchain) is that things get really expensive (software, gui, electricity etc) VERY SOON. So, my question is, why don't developers allow easier algorithms (security starts at day one, so why not keeping things easier) in order to spend less in mining, and make it more profitable once and for all?
This crazy system will not make crypto live long, in my opinion, just because of the incredible expenses it generates overtime. Just some thoughts.
Thanks Eugenio
PS If genesis mining would answer to that point of the 0,0003 eth per day (meaning 720 days to return the investment) that would be great : ) i know price of the currency can increase, but that, as said from other customers, would mean that is better to invest 30usd today in those coins, than in mining for 2 years. if the price increase, i sell and i get roi even within days or hours, not in TWO YEARS of mining. How mining is profitable, if there are such expenses and investments?
As said, demixmine seems a fair option to me, lets say if they are stable thou.

[BitMaver]

Guys, cloud mining has long been dead! You can disagree with me, but this is a passed stage. I have not been doing this for more than two years.
In my opinion, it's better to rent hashing power than to buy. Sometimes I rent hashing power on NiceHash when I see a potentially promising coin. But in this case we must constantly be aware of what is happening.