Way back in October, I decided to try out another cloud mining service, HashProfit.com. I used the free 200KH/s for a week and received for my troubles a whopping 0.01 BTC or something like that. I reinvested that BTC into buying some "permanent" hashing power, but all I could afford was 8 KH. I let that sit for over a month, and the payouts were pretty consistent if low. As a better attempt at investing, I decided to buy 100KH, which ended up costing 0.09638 BTC back at the start of December.
It turns out, this was a mistake. Not because HashProfit has proven to be unreliable, but rather that was the wrong way of buying hashing power. I don't recall what pricing was like in early December, but since the purchase (I've been at 116 KH/s for over three weeks now) I've been mining at a steady rate of 0.00082128 to 0.00085028 BTC per day. If we use a more pessimistic estimate of 0.0008 BTC per day, I should recover my initial investment in about 120 days. So what's the problem?
The problem is that buying with BTC at the start of December was stupid. You see, in an attempt to compete with GAW and Paycoin, HashProfit launched ProfitCoin (PFC) back in early November. The coin doesn't have nearly the backing of Paycoin (XPY), but there's one major use for PFC right now: you can use it to buy hashing power at HashProfit at greatly reduced rates. And I'm including the already reduced rates that you can get with the regular "sales" that are announced! Check this out....
At present, the going rate for hashing power on HashProfit is 0.08377 BTC per 100 KH (or if you prefer, 0.0008377 BTC per KH). There's a discount code right now, HPE241214, that will reduce the price to 0.0005948 BTC per KH -- I used a similar code at the start of the month. With that code, you can expect to hit ROI in about 85-90 days. That's pretty good, all things considered, but it's still not the best way of doing things.
I mentioned above that you can buy hashing power at HashProfit with PFC, and here's where it gets interesting. The current rate is 11 KH per 1 PFC, and the price of PFC at present is just 0.003 BTC per PFC over at C-CEX.com (and it's been as low as 0.0026 BTC in just the last day). What that means is you can buy 11 KH for 0.0026 BTC if you're willing to jump through a few hoops. Or put another way, the price is only 0.00027 BTC per KH.
If you're still not getting it, here's some additional math. 1 BTC will buy you roughly 333 PFC. 333 PFC will in turn buy you 3663 KH/s of HashProfits' "SmartMining" program. By my estimate, you would then earn about 0.025 BTC per day (actually a bit more, but I'm being conservative here). Which means you would hit ROI in 40 days or less.
Now, I'm by no means betting the family fortune on HashProfit, as the site is riddled with poor English and it seems they're trying pretty hard to copy some of GAW's success without doing a lot of the extra work that would really be required (i.e. getting millions of dollars in funding and investments). Heck, the whole thing could just be a giant ponzi scheme, using latecomers to pay out earlier users. GAW has of course had the same accusations leveled against them, and so far they're doing okay.
Anyway, I've been poking around at HashProfit for a couple months now and so I figured I'd put a larger investment into their services as so far they're doing what they've set out to do. I just bought a nice chunk of hashing power, and it will be interesting to see if ROI really comes by February. If it does, awesome; if not, I've lost far more than 1BTC worth of value ($325 right now) just with the drop in BTC prices that occur on a regular basis.
If you want to follow my example and take a small risk, here's the full sequence of steps:
Create a new account at HashProfit (assuming you don't already have one); if you don't, I'd appreciate you using my referral link as I get a potential 5% bonus on any purchases you make there.
Transfer some BTC over to C-CEX.com. They require two confirmations before you can use your BTC, so on average this will take roughly 20 minutes for your funds to arrive. (Again, I'd appreciate new users to C-CEX using my referral link.)
Go to the PFC/BTC market and buy as much PFC as you have BTC to invest.
Go to the "Buy KH/s" page (under your account on the top) at HashProfit, and under PFC Balance on the left click "Deposit". Get your PFC address and then go back to C-CEX.
At C-CEX, go to My Assets -> Balance on the top, and if you filter by "Non-zero and pending" you can find your PFC wallet. Click the Withdraw button, put in your HashProfit PFC address, and send all of your PFC over there. You'll probably have to verify the withdrawal via an email link.
PFC has a block target time of five minutes and I think HashProfit requires two or three confirmations, so you're looking at 15 or so minutes for your funds to arrive.
Now go purchase SmartMining at 11 KH/s per PFC, and you're done.
I've done all of the above today (Merry Christmas Eve!), and by my estimate I should earn 0.02619045 BTC (give or take) per day. It's almost enough to make me want to invest in a few more BTC worth of PFC, to get to the point where I'm earning more like ten times that rate. Just think of that: 10 BTC's worth of PFC transferred into SmartMining could potentially earn 0.25 BTC per day. $85 per day in income, or an extra $2550 per month? Yes please, I'd like that. Heck, double that amount and most people could quit their day job!
PS: I should note that this is a good enough deal that once this post is live on the web, we might see a run on PFC as well as the hashing power over at HashProfit. Don't be surprised if prices and rates change quite a bit in the near future, as 30-40 days ROI is pretty much the "holy grail" of mining investments.