Genesis Mining (Genesis-Mining.com) is a very smooth operation in the sense that it doesn’t outright scam its clients, but it doesn’t actually let them profit either. To make it clear why this is indeed the case, let’s go through all the details in regards to what’s being dangled here and how the system works.
First of all, as said above, Genesis Mining doesn’t make any outrageous promises. It is a simple cloud-mining service, which essentially allows clients to rent mining hardware and to mine their own bitcoins and altcoins. To this end, Genesis Mining offers a number of contract-options, targeting various potential user-categories. There’s a Gold, a Platinum and a Diamond plan available for each crypto currency type they feature, in addition to a custom plan, which clients are free to configure themselves. The system is based on the cluelessness of the general public regarding the finer points of the bitcoin mining process, as well as on the massive hype the latest price-surge has induced way above and beyond the boundaries of the crypto currency community. Let’s just say for now that these contracts aren’t profitable.
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The supported digital currencies are Bitcoin, Dash, Ethereum, Litecoin, Monero and Zcash.
According to Alexa.com, the Genesis Mining website is highly popular (global rank of 5,586 on July 2o17), especially in the US, but also in China, India, Brazil, Spain and Germany among other countries.
Again: while the operation doesn’t make any outrageous claims, and while the whole advertised setup seems valid indeed, let’s not forget that we’re looking at a cloud mining scheme. Given that 99.9% of such schemes are scams, it is safe to say that we’re not dealing with a particularly prestigious vert here.
The Genesis Mining website on the whole seems legit. They have an “About Us” section, where the entire team behind the operation is properly introduced. Marko Streng is the co-founder and CEO of Genesis Group. The other team members are Jakov Dolic, Marco Krohn and Stefan Schindler. Genesis Mining Ltd. is the name of the corporate entity behind the operation and it’s based it Hong Kong, at Chinachem Century Tower, 31/F, 178 Gloucester Road, Wanchai. The company has an Iceland-based subsidiary as well, based at Borgartuni 27, 105 Reykjavik, Iceland. They actually have mining equipment set up in Iceland, and they do indeed mine bitcoins there. The exact size of the mining operation is unknown, but they pay about EUR 1million per month for electricity, so it’s quite massive indeed.
The operation has different mining farms set up for different crypto currencies and they’re boasting that the world’s largest Ether mining farm is theirs too. Genesis have apparently developed a specialized platform to monitor their mining operations, called Genesis Hive.
As mentioned above, it appears that the operation is indeed fully legit and that they do indeed mine digital currencies. With that in mind, it’s safe to say that Genesis Mining isn’t a scam in the sense that it tricks people and steals their money. As said above, the contracts that they feature are simply not profitable.
Let us take a closer look at these contracts. The Gold contract costs $30 and it gives buyers access to 200 GH/s mining. There are maintenance fees that come in on top of the $30.
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The Platinum contract costs $350 and it offers mining at 2,500 GH/s. The Diamond deal costs $1,950 and it features 15,000 GH/s access. Maintenance fees apply to all the aforementioned contracts.
According to the alloscomp bitcoin calculator, with current difficulty and with the current (possibly massively inflated) price of bitcoin, at 200 GH/s, one could make some $0.20 per day, which would amount to $6 per month. At this rate – if all variables remained unchanged – it would take a Gold contract buyer at least 5 months to make ROI.
Obviously though, the variables will change. Even right now, we’re in the beginning stages of a major BTC price drop, as the currency has apparently just embarked on another one of its bust cycles, following an unprecedented boom one. This fact alone can potentially completely ruin the above made calculations. We also need to add to that the ever increasing difficulty factor too, which has already factored just about everyone but specialized operators such as Genesis, out of the mining business.
The numbers add up in a similar manner for the other contract plans too, so it’s clear that even if one does reach profit territory through sheer luck and foolhardy perseverance, the profit amounts will be extremely minute. Given the massive volatility of the bitcoin price, it is therefore safe to assume that one is much better off just buying bitcoins for that same amount of money and holding on them until the price reaches a high enough level to justify selling them.
This might be the optimist’s take on the operation though. According to user feedback (and there’s plenty of it piled up at bitcointalk) there are more scammy maneuvers taking place at Genesis too. Users have complained that they managed to recover about half a BTC of a 2.6 BTC contract before the revenue-stream all but dried up.
Other bitcointalk posters have summed up the situation nicely: the investments made by buyers amount to little more than loans, where the amount of interest and actual return is decided by the person receiving the loan. It isn’t exactly a good business setup for the entity giving the loan.
Streng occasionally came out swinging in defense of his operation through various articles, summarily dismissed by the bitcointalk community as “puff pieces.” Indeed, all of Streng’s arguments have been logically taken to bits by the bitcointalkers, and thoroughly ridiculed too. Transparency is apparently not one of the strong points of the operation.
Reddit has seen some negative Genesis banter as well, though the discussions there are nowhere as enlightening as the bitcointalk thread on the operator.
Genesis Mining Review Conclusion
While it may not be a straight-up Ponzi scheme or money-stealing scam, Genesis Mining is a sort of scam nonetheless. Contracts only pay for a short while, and investors never really manage to recover their monies, much less make a profit. While there is actual mining being done, there’s no transparency and the stories of Genesis’ talking heads just don’t add up.
Verdit: Genesis Mining is a SCAM!
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Blacklisted site: genesis-mining.com
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Genesis Mining scammed me out of the lifetime contract after several months of running. Their payouts are also not transparent and I believe they have no mining equipment what so ever. Eventually, I got the help I needed from Dr. Marcus Gate.
I am mining Monero and transferring it to XLM through Poloniex, works great for me (3000 h/s).
Genesis Mining is the largest mining company in the world, that cannot be by mistake. I’m mining with them since 2015 and generally I am satisfied. When stocks went down whole cloudmining market went down hill, recovery is taking time, but I still see Genesi MIning and generally cloud mining as profitable. There is no truth in some things written here, because profit exists, but you have to be patient and aware of the stock market.
Mining market itself is a gamble, you never know how much will you earn from day to day. I think when you start mining you kind of agree on that, but you just hope for the best outcome. I am mining with Genesis Mining and despite market changes I haven’t had any major problems with my payments or contract. I have recently upgraded my contract and it seems to be a good move. I just hope the whole mining industry will be back on tracks soon.
When it compes to mining bitcoin and mining ingeneral i trust only Genesis Mining as there are so many scams and ponzi nowdays. I wouldn’t risk and invest anywhere else and I am saying this after years of mining in different sites. Genesis Mining proved to be real and legite, their paymants are regular and on time. I have a few contracts and btc is one of them. So far I can say that I am more than satisfied with how things are going and just a feeling of beeing secure when my money is invested is everything. So, Genesis is definitely my reccomendation.
Genesis Mining is the largest mining company in the world, that cannot be by mistake. I’m mining with them since 2015 and generally I am satisfied. When stocks went down whole cloudmining market went down hill, recovery is taking time, but I still see Genesi MIning and generally cloud mining as profitable. There is no truth in some things written here, because profit exists, but you have to be patient and aware of the stock market.
I don’t think Genesis Mining is a scam. There are people like me who are getting our paymants regulary and on time. I knew what I am doing when I have signed the contract. If anything, their contracts are clear and writen so you can understand them.
I have a few contracts running and I have upgraded them when I was offered. I haven’t regreted, I have to say but hopefully our profits will be much bigger next year. Hopefully, mining market and whole mining industry will get better.
absolute SCAM, DO NOT INVEST. THESE ARE FAKE POSTS THAT SAY THEY ARE LEGIT. They are not. Please don’t do it. What they do is reduce the payout even though mining difficulty has gone down. Payouts are not performed. When you email them they give you generic responses.
Dear admin, I hv been getting paid from Genesis from June.. Hv covered my money and in profits.. I get what you are saying and I don’t deny the fact..running such a scheme with more then 500,000 followers is not easy and of course sm lose some will profit..maybe M the lucky one..but so far so good..from them I hv invested on sm of the sites u hv invariably declared as scams and m getting paid from them as well like bitconnect and chain group. Are u sure your research is definite.. Hv u invested with them? Can I see sm proof if u hv before u ask me? Hope sir my questions are legit..wish only well..
Common sense says if mining was so profitable why would they need to sell contracts.
Operation like genesis are well planned by con man like their ceo because they know there is no repercussions.
Say one day you wake up and you read the paper and it say genesis ceo was gunned down in broad daylight. You can bet then genesis mining operation will cease to exist.
Sometimes it takes a bullet to set things right.
Not receiving my ETH 175Mh/s contract payout from Genesis Mining after paying 4800USD.
Sent so many email to Genesis mining regarding about my problem but no reply at all.
Get them individually at Linked-in . They all have an account there .
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Genesis Mining is not dumb nor generous, they are not going to sell you contracts if they believe they make more mining it themselves. There are times when contracts go “out of stock” and THOSE are the few small windows that you will be profitable. Kind of like most buffets, there WILL be few unprofitable customers but the rest 99% is where the money comes from.
Are they really out of stock ever? Absolutely not. THOSE are the time where the people crunching numbers in the back says, hey look we will lose money with these contracts, let’s remove them from the site temporarily and mine it ourselves. Just a few weeks ago, they did a so called “pre-sale” of btc contract mining starting oct 31. Hilarious, ~60 days is eternity in cryopto-mining.
Their argument of how you can make money because btc appreciates in value is also very weak. If you paid 1 btc worth $2000 and got back 0.8 btc worth $4000. You still lost.
worst investment I made on my life, spend lot of LTC there. I was dummy. Genesis Mining is not a scam but it’s a rip off. they are doing the big bucks. Put the fees as a percentage of your profits and not static! i wish I could put you in court
Alright so here it is, don’t ever invest in genesis , there is no way to make a profit, even have your money back, I bought a 2 years contract and 3 months in is almost not paying and will stop paying in 2 months if I’m lucky. It was an 18 000 $ investment, I will lose around 5-6 k on it. If you invest less money it’s gonna be even worse.
all those discount code you see evreywhere is the only way to finally make a bit of money , so the only way for you to make your money back is to refer tons of people ; think about how a ponzi work …
Halvening every three month 2/3 of invested money lost. Stay away take your coins put them in your node and wait. Watch those videos on youtube carefull how often they tell you “use my code” and read the comments “use my code” they do that because its the only way of breaking even. Don’t be greedy and invest in a scam.
Everyday a sucker is born and one day it was me.
After reading this review of Genesis Mining I did some of my own research into cloud mining. It may take a little while to get a point of breaking even with the investment cost, but I feel it’s going in the right direction. Obviously you need be educated about mining difficulty and block reward rather than just the price on the bitcoin against your currency, as there are several factors to consider including timing. No get rich quick scheme here, just another investment opportunity that you take with the same care and diligence as any other investment.
poloniex stole all my mining from genesis 1.83 bitcoin, now im into trouble , have 21 months left to my contracts of 4040 mhz x11 worth 18 k usd , if anyone is interested i would let them go for 10 k usd , we would go through genesis for payment and transfer, reply if interested
thanks in advance
haha…another “healthy profit” guy
one of these guys tried to defend the scheme at bitcointalk too
this is the rebuke he got:
“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.”
Food for thought eh?
I am incredulous. I started mining with Genesis in Dec 2016 and have long passed my initial $450 investment. I’m still getting paid and making a healthy profit. How you come to the conclusion that “you will never make a profit,” defies reality.
If you can provide us with proof of these claims, we would be happy to alter this review. However, I find it hard to believe that all those people claiming from their experience that Genesis Mining is a scam are just lying… check out for yourself what people say at bitcointalk.org.