Why I chose Mining Ether and how I did it

[empowers]

Background

Already invested in traditional markets (stocks, real-estate, savings, bonds), I recently raised my interest in the cryptocurrencies.

I looked at differents aspects : blockchain theory, ICOs, bitcoin and altcoins, main currencies value and chart evolution, mining (DIY and cloud). I rapidly was excited by this new eldorado and the opportunities that could emerge.

To resume my main question was :
Should I buy/sell currencies or produce them?

It seems that the currencies are at their hignest, can potentially continue their progression but you have to take position rapidly in order to buy and sell at the good moments.
It is something I am already used to with the stock market and therefore not so attractive anymore and also time consuming.

The other option is original because of the mine allegory.
Who did never dream to find a gold mine and exploit it?

Is cryptocurrency mining profitable?

I began to produce altcoins with minerGate on my MacBook Pro.
The app selects the most profitable altcoin (mostly with CryptoNight algorithm) to mine based on its hash rate and coin value : at this time it was Monero (XMR). My computer was hardly managing to mine at 100 H/s.
After one day of continous mining and maintaining the power of my Mac, here are the stats :

• 0.00727 XMR (equivalent to $0.3 at the time I made it)
• 0.96 kWh ( equivalent to $0.1)
• profit of $0.2 !!!

Wow it works, but it will take a lot of personal computers to make the difference.

The way to earn big money is to see at a bigger scale : increase the Hash rate while maintaining the costs low.

Cloud Mining

So I began to look at the well known cloud mining solutions : Genesis Mining, HashFlare, ViaBTC,…
I eliminated rapidly bitcoin mining because of the low profitability and also the unknown duration of contracts.

I took a look at Genesis Mining (GM) and HashFlare (HF) offers with the only currency they have in common : Ethereum.
Both propose a duration limited contract with no additional fees (maintenance or electricity).
So I compared offers that generate the same amount of ETH (if difficulty is constant): 100 MH/s for 1 year (HF) and 50 MH/s for 2 years (GM) and computed the daily profitability (pd), ROI.

pd = ({daily generated coins}*{ETH value} / {daily cost}) - 1

Results :

• HF: pd = (0.0938 * $205.49)/(2200/365.25)-1= 220% ; ROI = 114 days, 251 pure profit days
• GM: pd = (0.0469 * $205.49)/(1450/730.5)-1= 386% ROI = 150 days, 580 pure profit days

Of course there is no guarantee that the ETH value will stay the same and that with the difficulty increasing you can generate the same amount of coins every day, but there is so much space for profit in these conditions and also the ETH has still a big potential.

Reminder : Never borrow to invest, nor invest money you can't afford to lose.

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[BitWhale]

So I compared offers that generate the same amount of ETH (if difficulty is constant): 100 MH/s for 1 year (HF) and 50 MH/s for 2 years (GM) and computed the daily profitability (pd), ROI.

The thing is though difficulty is never "constant" and is always rising. Ethereum mining looks really juicey right now, but only at current valuations & current difficulty. Imagine hypothetically that in 6 months (180 days) when the difficulty is @ 50% higher than it is now and Eth is 50% lower in value, it's going to cut into the profits majorly.

http://www.coinwarz.com/difficulty-charts/ethereum-difficulty-chart

This reminds me of in 2013 when all the asic miners on ebay started doubling and tripling in price because BTC mining suddenly became profitable again. Alot of people seem to forget that there were periods in 2012 & 2014 where miners were mining speculatively, it was basically breakeven/small profit but most of them were mining coins to hold for the future.

The community always says you are much better just buying and holding if your plan is to hold the Ethereum you make. You will make much more profit from taking the cash you spend on contracts and buying Ethereum for the future, just preferrably don't buy in the middle of one of the largest crypto-bubbles in crypto's short history though, you should've been buying last year

[emezh10]

Monero today was really a goood altcoins at a high price if you sell your monero today that was a good profit but i guess macbook pro was not really a good hardware for mining you better build a desktop pc with a high end hardware it is better and give you a good profit i guess.

[cengsuwuei]

ethereum(ETH) price is very high and still potential incraese so if you mining ETH can profit
and ETH user is very high, include added feature ethereum token can incraese very hig to user community, and much people still always use ETH

[empowers]

Let's take into account the difficulty increase and the Ether price evolution in 2 Years in order to compute a more realistic profitability of Ether Mining with GM offer.

Ether :
current value $200
current difficulty 450T
Future profits estimated on My Crypto Buddy

Ether value change	-80%	-50%	-30%	-20%	0%	20%	50%	100%	200%	500%
profit. Diff incr. 10T/m	-37%	57%	120%	152%	214%	277%	372%	529%	843%	1787%
profit. Diff incr. 50T/m	-61%	-2%	37%	56%	96%	135%	193%	291%	487%	1074%
profit. Diff incr. 120T/m	-75%	-38%	-14%	-2%	23%	48%	85%	146%	269%	638%

Consequently investing in Ether Mining allows to outperform the Buy/Hold strategy in a 2 years period