Genesis Mining – Examining the Largest Scrypt Cloudmining Provider

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interview (2)Buy crypto currencies or mine it yourself? That’s probably the most asked question by everyone who wants to dive into the mining of Alt- or Bitcoins. Many important factors need to be regarded. In addition to the cost of the hardware, you must not forget that electricity costs play a particularly important role. So a supposedly secure business quickly can change into a loss. CCN spoke with the CEO of Genesis Mining, Marco Streng on how the cloudmining provider from Munich became the largest supplier in the scrypt mining scene.

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The race against the electric meter began already in 2011 for Marco Streng in his home. He built a rig and minted the first Altcoins, focused on Litecoin (LTC). And apparently it went splendidly. What works with a small rig (= name for a machine that digs Coins), will certainly also work with a bigger one, Marco Streng thought and developed at the end of 2013 Genesis Mining. The name Genesis based on the Genesis block (first block within the Bitcoin block chain) was chosen. (The word “genesis” comes from ancient Greek and means: creation, birth.)

In addition to the mining, Marco still worked for numerous Bitcoin exchanges, such as Mt Gox, where he was programming the back-end computer.

As often in the scene everything happens very quickly:

“We started small and quickly realized how profitable it is. After we noticed the great potential, we tried to expand and joined us together with others “- Marco Streng in an interview with Let` s talk Bitcoin

Now Genesis mining employs around 22 workers around the world and is always looking for new opportunities.

Gavin Andresen suspected Ponzi scheme behind Cloudmining

Gavin Andresen, scientific director of the Bitcoin Foundation, recently expressed that there are Ponzi schemes in many cloud mining providers.

“I suspect many of [the cloud Bitcoin mining companies] will turn out to be Ponzi schemes.”

But what exactly is a Ponzi scheme / pyramid scheme?

Definition: A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.

Specifically, Garzik accuses the providers to purchase no hardware and generate income, with the ever increasing numbers of users.

mining farm genesis mining
Genesis Mining in Island

Genesis mining seems to be prepared against this accusation. At the risk, customers may believe that there is no hardware, Marco has released photos on different channels showing the hash farm in Iceland. In the future, there will also be a video where users can see their rigs working.

“Transparency is extremely important to us because the past has shown that users of the Bitcoin companies have placed a lot of confidence in them. Another Mt Gox would not be good for the scene. “- Marco Streng

Looking at these pictures some probably ask themselves how much hashpower Genesis mining might have. Exact figures can of course not be called, but it is moving in the range of several GH / s in Scrypt mining, which makes Genesis mining the largest supplier in this field.

World Travel

In order to offer the customer the best price, the developers were always looking for countries where the cheapest electricity is available. So the trip took over China, Romania, Bosnia, America also to Iceland.

The search for a perfect location is complicated of course. Governmental regulations must be observed, for which a number of lawyers who are specialized specifically to the law in several countries must be involved.
The most important thing, as Marco emphasizes is that you need to trust the people from the crypto scene, as he shows by an example.
At an event in Berlin, he met a Chinese man who made ​​her aware of the low prices in China. The team immediately booked a flight, watched the area and transferred some bitcoins to the new partner, whom they knew only a few days. It all went well and so they found a new location.

Interesting fact: With the warm exhausted air the miners produce, they heat, for example, a school in Bosnia.

Mining at Genesis Mining

Currently, the developers of Genesis mining have introduced the “lifetime contracts”. On the day of publication, the servers were crippled by the large crowds. The demand is huge.

From $ 17.99 on you can mine altcoins. One MH / s, generates about $ 0.35 a day. (data calculated on coinwarz.com) So til the break even it takes about three months. But how can Genesis Mining realize such offers? Compared to the prices for Asic Miner with 1 MH / s this is an extremely low price, if you see the 1.3 MH / s Miner from GAWMiner for $ 35.95 and the efforts to keep the Miner running.

“We at Genesis mining are glad to have good partners who can offer us good prices due to the large quantities,” – Marco Streng

So you don`t only save when shopping, but also, if you look at the running costs such as electricity, maintenance etc..

On Genesis Mining, you can mine each of the two major coin algorithms (sha 256 and Scrypt). As part of the announced “Project X” also x11 and x13 algorithms will be mineable in the future.

According to Marco thousands of graphic cards and Asic-Miner, were purchased. Many miners are now asking from personal experience how numerous the problems in the large number of graphics cards and ASIC miners were. But here the experts at Genesis mining did a great job so far, Marco says.

“Faults are rare, because if you know what you are doing, you can reduce this risks. Should there be a fire, it is specifically deleted without damaging adjacent equipment “- Marco Streng in an interview with Let` s talk Bitcoin.

In the future, a further innovation in the crypto scene is brought to life with the “Project X”. Much isn`t known until now, but it will also give the possibility to mine x11 and x13 algorithms. And also merged mining of Dogecoins and others should be possible in the near future.

Read also: Inside Look at Cloudmining’s Iceland Datacenter

Genesis Mining Defeats Scam Accusations

Since there were allegations against Genesis mining lately, I checked it myself. I opened an account and bought 1 MH / s, which I immediately paid for with Dogecoins. Approximately two minutes after the transfer of the amount was confirmed the confirmation that the Miner now dig for me came through. I received the first payment on time by 24 clock. So far (after one week) everything works fine for me! Other sites often seem much more “scammy.”

“We had quite a few users who have paid significantly too little. We then decided to let all orders go through. This was why there were some delays. ” – Marco Streng

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Disclaimer: The author conducted an interview with Marco Streng, CEO of Genesis mining. The author is not involved in the company and digs his coins on his own computer. He now has 1 MH/s of scrypt mining power at Genesis Mining for test purposes. The author did not receive any special reward from the company.

Images from Shutterstock.

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