With the very volatile Ethereum price right now, cloud mining contracts for this digital currency are a decision that needs to be weighed very carefully. It will be all the more difficult to make an ROI right now, but the comparison over at CryptoCompare gives quite an interesting overview that is well worth taking into account.
Also read: Ethereum Technical Analysis for 04/13/2016 – Major Battle Zone at 0.0215
Falling Ethereum Price Means Slower ROI
The one thing people tend to forget is how yearly cloud mining contracts are very ROI-dependant on the value of the coin that is being mined. In the case of the Bitcoin price, anything below US$325 will make it pretty much impossible to ROI anytime soon. But how does this stack up for Ethereum, which has taken a serious beating over the past few days?
So far, there is no reason to despair just yet, as miners will earn their original investment back and still make a small profit, according to the CryptoCompare statistics. That being said, the term to earn back the original investment amount has been increasing by quite a margin, and may turn away a lot of potential investors.
CryptoCompare tracks two major Ethereum cloud mining providers, in the form of Genesis Mining and Hashflare. Both of these companies offer similar products, as contracts run for a full year, albeit the pricing is quite different. It is exactly that difference that makes the difference between a very slow and a relatively slow ROI at the current Ethereum price.
Hashflare users are, according to CryptoCompare, able to get an ROI within 302 days, which leaves very little room for profits to be made. This same ROI time is valid for all of their cloud mining contracts, although the eventual profits will range from US$6.72 to US$772,31 per contract. More hashpower means bigger profits, but also a larger upfront investment.
Things are slightly different for Genesis Mining Ethereum cloud mining contracts, though. With an expected ROI time of 355 days, users will earn a very small profit, which is almost not even worth mentioning. The 100 MH/s contract, which costs US$4,400; will net investors a US$112 profit over the course of one year, assuming prices do not crash further.
It is clear for anyone who is even considering buying an Ethereum cloud mining contract from either provider that proper research needs to be done. Granted, Hashflare has a lot of potential, and their original investment value is a lot lower than Genesis Mining. But keep an eye on the CryptoCompare page at all times, as things will fluctuate quite a b`it.
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