Since the start of this summer, I have been very intrigued with the crytocurrency and blockchain space. Its hard to miss the mania in the space, as some of the currency returns have gone parabolic. I started off with buying a small amount just to get my feet wet and as I look at learning more about the space, I started getting interested in mining the coins.
Like almost everyone out there who is interested in it, I wanted to mine the currency myself, but ran into some technical issues and reading more I realized that individual mining does not yield much, esp for the really popular currencies like Bitcoin (BTC) and Ether (ETH). You need specialized ASICs for Bitcoin and good GPUs for Ether to make it worth your while. So, I started looking for other options such as cloud services to pool mining operations. While this looked like an interesting option, I didn’t move on this front for a while. Until very recently.
This changed in late September, as I decided to invest in Hive Blockchain Technologies (HIVE.V). That initial investment was a complete gamble on my part, but it paid off. After a 200%+ return in less than a month, I sold half my position, while I currently free-carry the rest. Hive is in partnership with Genesis Mining, which runs multiple datacenters that mine cryptocurrencies in Iceland and Sweden. What better way to understand a business model than to become a customer 🙂 And that is exactly what I did…I decided to buy a mining contract with Genesis Mining to mine three cryptocurrencies — Ether (ETH), Zcash (ZEC) and Monero (XMR).
Doing this has multiple advantages and I invite you to explore the idea as well.
Why I think this is great:
- I don’t have to build my own mining rigs and spend money on electricity at home. The data centers are setup to run and mine these cryptos in parts of the world where the energy prices are dirt cheap (Iceland).
- As mentioned above, becoming a customer of Genesis, I have a better understanding of Hive’s business model. This may seem unappealing if you are not a shareholder in Hive, but doing this also exposes you to this new paradigm of cryptocurrencies; allows you to think about this space, think about various different currencies and motivates to read and follow when you have some skin in the game; setting up wallets, sending and receiving funds — sooner or later everyone will have to do this as digital currencies become the norm, so why not get a head start?
- I have learned more about ZEC and XMR after I bought this contract — something I wouldn’t have learned if I was just following the news headlines, which focus more on BTC and ETH. There are other currencies to mine with Genesis as well, depending on pool availability such as Dash (DASH), Litecoin (LTC) etc.
- Provides me with a passive income 🙂 This is the big one, which draws people to mine cryptos. Depending on how much hash power you buy in your contract, you are compensated every single day with cryptos that are accumulated and sent to your wallet. With this setup, I have now diversified my income stream with another source!
- The cryptos that I earn daily are “dollar cost averaged” as I build my portfolio over time.
- I believe some or most of these cryptos will rise in value over time, so not only am I earning money via passive income today, but unlike cash — it is also an automatic investment for the future as the crytpo world gets bigger, and heads towards mass adoption.
Note that this is a pretty small investment on my part and I will not be reaching financial independence anytime soon with this, but as I like to mention to my readers — its all about finding those multiple streams of income. This is another little stream that will contribute to my monthly income.
The way things are setup with Genesis Mining right now, I have a 2-year contract for the three cryptos (ETH, ZEC and XMR). At the end of the 2 years, I expect to probably break-even or just go slightly higher than my initial investment amount, in today’s crypto dollars worth. If in 2 years, these three cryptos are valued much higher, that just means extra returns.
If you are interested in signing up with Genesis Mining, I would like to ask using my referral code: 7rCM6o. Using this code, both you and I will receive extra hash power on the servers allowing us to grow faster.