My results after one month of mining on the Bitcoin.com Mining Pool

[BitcoinXio]

When the Bitcoin.com Mining pool first opened, I purchased a 1 month contract to try it out. My initial investment was $400.00, which at the time was exactly 0.22135647 btc invested.

You can see my contract here which is now expired:



After the month of hashing on the mining pool, the contract has ended and my final btc is 0.25722119 btc; a difference and return on investment of .03586472 btc ($98.81 USD). With the price increase, the $400 turned into $708.68.

[GreyWyvern]

Hey congrats!

I'd like to see how my tool fares against your experience. Judging by the amount of BTC you paid, 1 BTC was worth $1807.04. when you purchased the plan. And Price.Bitcoin.com says 1 BTC was worth $2642.50 USD on June 17th, your plan end date. This means you had a nice 1.234% daily rise in BTC price over that time. During your plan you had two difficulty increases of 13.90% and 6.42% for an average of 10.16%.

I would just need the initial daily return amount you were receiving on the first full day of the plan. You can find this under Transactions.

If my tool is doing okay, it would be pretty darn close to 0.01284873 BTC before fees. How did it do?

[BitcoinXio]

I would just need the initial daily return amount you were receiving on the first full day of the plan. You can find this under Transactions.

I assume you mean the "reward" in the transactions. The first reward I rec'd from this contract was 0.00480587. Does that help you? Sorry, I haven't seen your tool before, can you link me to it?

[GreyWyvern]

I would just need the initial daily return amount you were receiving on the first full day of the plan. You can find this under Transactions.

I assume you mean the "reward" in the transactions. The first reward I rec'd from this contract was 0.00480587. Does that help you? Sorry, I haven't seen your tool before, can you link me to it?

0.00480587 BTC would have been your pro-rated reward for your first day. I meant the first full day reward. IOW the day after you got the 0.00480587.

You can find the tool here: http://www.greywyvern.com/code/javascri ... itcoincalc

[rogerver]

At the moment our lifetime plan is priced the most aggressively.
Users will likely see a positive return on both the BTC and fiat side of their investment.

If you are wondering why on earth we would be willing to sell something that will likely make a substantial amount of money when we could just keep it ourselves, the answer is simple.
Even at the current listed price, we make a slight profit on each sale.
By selling the lifetime contract now, we can immediately recoup the majority of what the equipment would mine in the next few years.
We can then take that revenue and immediately use it to buy additional equipment, and sell the lifetime contracts for that hash rate too.

If we can sell $1M worth of contracts per week, in ten weeks, we will have ~ $10M worth of mining hardware on our pool, but only had to layout $1M worth of capital ourselves. If I didn't sell the lifetime contracts, we would need $10M worth of our own capital to have $10M worth of mining power on our pool. In short, selling the contracts at a discount of what they will actually earn allows us to leverage our working capital to grow much much faster than we would be able to otherwise.

I hope I explained that clearly. If not, I'm happy to answer additional questions.

P.S. Don't forget to try out this great calculator made by one of our forum users, Greywvren
http://www.greywyvern.com/code/javascri ... itcoincalc

[BitcoinXio]

I would just need the initial daily return amount you were receiving on the first full day of the plan. You can find this under Transactions.

I assume you mean the "reward" in the transactions. The first reward I rec'd from this contract was 0.00480587. Does that help you? Sorry, I haven't seen your tool before, can you link me to it?

0.00480587 BTC would have been your pro-rated reward for your first day. I meant the first full day reward. IOW the day after you got the 0.00480587.

You can find the tool here: http://www.greywyvern.com/code/javascri ... itcoincalc

You can see the first few payouts here, still not sure which one you are asking for?

[BitcoinXio]

At the moment our lifetime plan is priced the most aggressively.
Users will likely see a positive return on both the BTC and fiat side of their investment.

If you are wondering why on earth we would be willing to sell something that will likely make a substantial amount of money when we could just keep it ourselves, the answer is simple.
Even at the current listed price, we make a slight profit on each sale.
By selling the lifetime contract now, we can immediately recoup the majority of what the equipment would mine in the next few years.
We can then take that revenue and immediately use it to buy additional equipment, and sell the lifetime contracts for that hash rate too.

If we can sell $1M worth of contracts per week, in ten weeks, we will have ~ $10M worth of mining hardware on our pool, but only had to layout $1M worth of capital ourselves. If I didn't sell the lifetime contracts, we would need $10M worth of our own capital to have $10M worth of mining power on our pool. In short, selling the contracts at a discount of what they will actually earn allows us to leverage our working capital to grow much much faster than we would be able to otherwise.

I hope I explained that clearly. If not, I'm happy to answer additional questions.

P.S. Don't forget to try out this great calculator made by one of our forum users, Greywvren
http://www.greywyvern.com/code/javascri ... itcoincalc

Nice, so far so good Roger. I wanted to make this post to show others whether it was worthwhile or not. So far it appears to have a net gain and is a good investment.

[BitcoinNewsMagazine]

I own lifetime hosted TH/s at both ViaBTC and pool.bitcoin.com. I have had the contracts at ViaBTC for months and at pool.bitcoin.com for two weeks now. I have been keeping a running tally of fees against PPS reward for both services and can report that pool.bitcoin.com is taking an average 27% of the mining reward for fees while ViaBTC is keeping 16% of the mining reward for their fees. I did not expect such a big difference in fees between the two services but there you go. ViaBTC is out of stock, whenever they put up more TH for sale it goes quick.

[Possum577]

With my time on Bitcoin.com, i'm now a fan. I've only recently been acquainted with your mining pool, and I've not been involved in one in the past.

I have questions over the rates of return for the different contract lengths. They aren't the same and I'm curious why. The estimated daily rates of return appear to decline if buys a longer term contract, assuming the same initial investment.

-1 Month Plan Contract: $4,350 initial cost; current daily return of 0.063597 BTC
-3 Month Plan Contract: $4,340 initial cost; current daily return of 0.0296786 BTC
-6 Month Plan Contract: $4,250 initial cost; current daily return of 0.021199 BTC
-Lifetime Plan Contract: $4,515 initial cost; current daily return of 0.0148393 BTC

Can you confirm if I'm interpreting this correctly? And if so, why do Lifetime contract subscribers have lower estimated daily returns than the 1 month contract subscribers?

Thank you.

[GreyWyvern]

I have questions over the rates of return for the different contract lengths. They aren't the same and I'm curious why. The estimated daily rates of return appear to decline if buys a longer term contract, assuming the same initial investment.

-1 Month Plan Contract: $4,350 initial cost; current daily return of 0.063597 BTC
-3 Month Plan Contract: $4,340 initial cost; current daily return of 0.0296786 BTC
-6 Month Plan Contract: $4,250 initial cost; current daily return of 0.021199 BTC
-Lifetime Plan Contract: $4,515 initial cost; current daily return of 0.0148393 BTC

Can you confirm if I'm interpreting this correctly? And if so, why do Lifetime contract subscribers have lower estimated daily returns than the 1 month contract subscribers?

The reason the plans are the way they are is that you're not buying a daily return, rather you're buying an amount of hashrate for a specified period of time. The current daily return estimate is there just to help you double check if the plan would give you the return on investment (ROI) you're looking for.

You've adjusted the sliders on all the plans so that the initial costs are roughly the same, but you'll see that the X TH/s hash rate each of those initial costs buy are very different, because you're buying each of them for a different amount of time.

For example:

If I lent you $100 and asked you to pay it back over 30 days, I would ask you to pay me $3.50 per day. This would mean you'd have paid me $105 at the end of that period so I made some interest.

By the same token, if I lent you $100 and asked you to pay it back over 180 days, I would NOT ask you to pay me $3.50 per day. That would be very unfair for you, as you'd end up paying me $630 at the end of 180 days. More likely I would ask for a lesser value (a lower "current daily return") like 60 cents per day, so you'd end up paying me $108 at the end of the period.

The pricing of the plans reflects this.

[Possum577]

Ah, ok. So we're buying hashrate, which directly correlates to the processing power being used or rented in the mining pool. And we'd pay more for the same level of hashrate if we're being given access to that processing power for a longer period of time, through the longer contract term. Correct?

[GreyWyvern]

Ah, ok. So we're buying hashrate, which directly correlates to the processing power being used or rented in the mining pool. And we'd pay more for the same level of hashrate if we're being given access to that processing power for a longer period of time, through the longer contract term. Correct?

Yes. That's right.

[cryptonoob]

I'm new to the world of cryptocurrency, and very new to mining.

I would love to do this but I have a few questions and concerns.

1. what happens if there is a hard fork and I bought a lifetime contract?

2. what happens if bitcoin prices go down? I saw that fees go down if it becomes unprofitable. But is it possible to lose money every month?

3. if I buy a lifetime agreement, could I cancel it if there is a need?

Please do help me with any articles or info before I invest.

[cryptonoob]

Ah, ok. So we're buying hashrate, which directly correlates to the processing power being used or rented in the mining pool. And we'd pay more for the same level of hashrate if we're being given access to that processing power for a longer period of time, through the longer contract term. Correct?

That's what it looks like. IT kind of makes sense. They're betting that prices for bitcoin go higher, so demand goes higher.

But the lifetime contract is more than twice the 3 month contract. So it doesn't really make any sense. I could just buy another 3 month contract, after it's over..as long as there is supply.

Can someone give a good argument on why the lifetime contract makes sense?

[cryptonoob]

Also another question I have...

If I buy the lifetime contract and 1 TH/s now, can I increase that later down the road easily?


Sorry for all the noob questions.

[GreyWyvern]

Hi cryptonoob!

That's kind of a weird name to have picked because eventually you won't be such a noob anymore. Sometimes I still feel like a noob myself, as a lot of the under-the-hood stuff makes my head spin, but I do like economics and math, so I'll try answering some of your questions.

1. what happens if there is a hard fork and I bought a lifetime contract?

I'm really not sure how pool.bitcoin.com is prepared to handle a hard fork. I would actually like to know as well!

2. what happens if bitcoin prices go down? I saw that fees go down if it becomes unprofitable. But is it possible to lose money every month?

No. If the daily revenue from your plan goes down low enough that the daily fee exceeds it, your plan will cancel itself after 7 days. You won't be losing money month after month. However this is VERY unlikely for all plans except for the Lifetime plan where it is inevitable. More on that later.

3. if I buy a lifetime agreement, could I cancel it if there is a need?

The developer of pool.bitcoin.com has previously stated (pools/bitcoin-com-mining-pool-official- ... tml#p64440) that plans cannot be canceled/refunded once bought. Although the term "Lifetime plan" is misleading as it definitely won't last a lifetime.

Over time, due to difficulty increases, the (for example) 10 TH/s you buy today will not be powerful enough to return the same amount of BTC as it does today. Unless the price of BTC vs USD goes parabolic, the daily fee taken by the pool operators will inevitably exceed the amount of BTC your hashrate is generating. I would say the average "lifetime contract" would last between 1 and 2 years. A bit longer if you're really bullish on the price of BTC.

The problem is that during the lifetime contract, you will get most of your income in the first year or so. After that the fees will ever-so-slowly approach your daily revenue, so you'll still be earning on your contract, just very very small amounts for a long long time. If BTC is worth $30,000 next year, then those small amounts will be worth a LOT in terms of USD, just not a lot of actual BTC.

But the lifetime contract is more than twice the 3 month contract. So it doesn't really make any sense. I could just buy another 3 month contract, after it's over..as long as there is supply.

Can someone give a good argument on why the lifetime contract makes sense?

If you're nervous about the direction the BTC price vs USD will go in the short term, I would stick with the 3-month contracts for your own peace of mind. OTOH if you are bullish on the price of BTC, a lifetime plan will net you more actual BTC for a lower overall cost than stringing together 3-month plans.

It's like choosing between a fixed-rate and variable-rate mortgage. You pick which one most fits the risk you're willing to take.

If I buy the lifetime contract and 1 TH/s now, can I increase that later down the road easily?

You can't change a contract once you've bought it, but you can easily buy a new contract at anytime the pool has them available.

Sorry for all the noob questions.

Nothing to be sorry about! We were all noobs once.

[cryptonoob]

Thank you Grey

Very helpful. I'm going to think about it tonight and perhaps start doing this tomorrow.

I was bearish on Bitcoin, because as a developer, I like the tech behind Ethereum.

BUt with all the ICO's, the price of Ethreum is all over the place and trading comes to a halt.

Seems like Bitcoin is going back up. Although I doubt it will be 30k any time soon.

[Possum577]

They're betting that prices for bitcoin go higher, so demand goes higher.

I'm not seeing that logic in relation to their contract pricing. Everyone who's involved in Bitcoin mining believes that prices will go up, otherwise what's the point of the investment?

The bullish point of view on the investment doesn't really play a part in how they've priced their contracts.

[Rmcdermott927]

A 115% return is much better than the net loss that most cloud mining providers leave you with. I may have to buy some hash in the near future.

[GreyWyvern]

I may have to buy some hash in the near future.

Oh yeah? I heard you can get a pretty good price for it on the dark net. XD

[rogerver]

1. what happens if there is a hard fork and I bought a lifetime contract?

I'm really not sure how pool.bitcoin.com is prepared to handle a hard fork. I would actually like to know as well!

We will likely just follow the longest chain with the most amount of hash rate although there are lots of other variables that might affect things as well.

Thanks for answering so many questions on the forum and for making that great calculator!

[randz]

Was the 1 month plan cancelled? (The last reference to the plan in this thread was just a couple weeks ago.)

[rogerver]

For the moment we are only selling the 3 month, 6 month, and life time plans.
Perhaps we will add the 1 month plans again in the future.