Genesis Mining DASH (X11) Return on Investment

Genesis-mining DASH Profitability Guide

This article outlines the return on investment for Genesis mining DASH  contracts (also known as X11 Mining). We highlight some of the risks and rewards of buying the 2-year contract (check out guides for Bitcoin, Ethereum).

In May 2017  we calculated:

Please note that yields are affected by many uncertain variables such as DASH value, mining difficulty and other risks. These risks are not accounted for in the above calculation, read the article for additional information on these risks.

What is DASH

DASH (also known as Xcoin, Darkcoin) is a form of digital currency that is not controlled by any government or individual entity. DASH is based on Bitcoin technology, with some major differences between:

  • Anonymous transactions – DASH transactions are anonymous, so it is impossible to trace the source of DASH funds. This offers significant privacy benefits for DASH users.
  • Instant confirmation – Masternodes instantly confirm DASH transactions, whilst Bitcoin transactions take 10-30 minutes to confirm.
  • Low fees – DASH transaction fees are significantly less than Bitcoins or any other bank for that matter.
  • X11 Algorithm – DASH mining uses a different algorithm called X11.

DASH Value

If you are investing with a fiat currency (eg USD), the value of DASH is one of the most important factors when calculating the return on investment. Once the contract is purchased, DASH will be paid out on a daily basis, based on the success of that day’s DASH mining. The fiat currency value of DASH fluctuates greatly over time and it is difficult to predict the future value. However,  DASH has grown explosively over the past 6 months, from $11 USD to $109 USD (March 20th 2017). Whether this will continue or decline is up to the market.

Price of DASH has gone up dramatically in March 2017
Price of DASH has gone up dramatically in March 2017

X11 Mining Contract 

Genesis mining is currently selling X11 mining in the form of a 2-year contract. 2 years of upfront payment must be made. Everything mined during the 2-years will go to the contract owner. It is important to note that you cannot change the mined currency after purchase. At the end of the article we will show you our calculations for a potential Return on Investment (ROI).

  • Maintenance – Unlike the Genesis mining bitcoin contract, there are no maintenance or electricity fees. This is an important factor in ROI calculations as the electrical bill can significantly cut profits.
  • Cost – $6 USD per 1 Mhz (hashrate). The price the hashrate goes down if you purchase in larger quantities (Goes as low as $4.5 per Mhz with the 1000 Mhz Plan)
  • Coupon – 3% discount with coupon:  6bXKwD

Daily Yield

Genesis-mining pays out the profits (yields) from cloud-mining on a daily basis. The daily yield of DASH depends on a few factors:

  • Network difficulty- Think of it this way, every day the same wage gets paid to all the DASH miners in the world.
  • The value of DASH– The current USD value of DASH is important for those seeking profits in fiat currency (USD) or even Bitcoin (BTC). *Genesis mining can be set to mine in DASH or BTC (automatically sell at market price)

To help with calculations, DASH mining calculators can be used to calculated the daily, monthly and annual yields. Note: Assume power consumption as 0 and 2 year period.

DASH Profitability Calculator

We can see from the image above that the annual profit for a 100 MH/s is $1057 USD (or 11.10 DASH).*

*Note: Network difficulty changes are not taken into account in this calculation. Increases in network difficulty reduce the DASH yield and in return will reduce the profit per year. Improvements in mining technology (ASICS) will increase network difficulty.

X11 Mining Return on Investment (ROI)

We will calculate the expected Return on Investment for a 100 MH/s contract as follows:

  • Expected value = $2114  (2-year contract of with annual yield $1057)
  • Cost of contract = $485 USD (Assuming coupon code “6bXKwD”)
  • Return on Investment = 436%

The current Return on Investment is simply insane. This is because the value of DASH has gone up whilst the cost of mining has not. In addition, physical miners (such as the Baikal Miner) are sold out.

What is X11 and what else can I mine?

When you purchase a DASH mining contract, you actually rent an ASIC that mines using the X11 Algorithm. X11 algorithm can mine coins such as Litecoin (LTC), Dogecoin (DOGE) and DASH. Genesis mining will mine other X11 currencies if it is no longer profitable to mine DASH. Genesis Mining can be set in “Auto” mode, where it will automatically choose which coin is most profitable and mine it. The following image shows the X11 settings on Genesis-mining.

X11 Genesis Mining Panel

The image above shows the default X11 mining option BTC (AUTO). With Genesis, they will use their X11 miners to mine the most profitable coin and automatically convert it into bitcoins. This is the most convenient choice as it reduces the need to create multiple wallets.

How to store DASH

The are two good ways to store DASH:

  • Dash Wallet– Storing it in a personal DASH wallet allows easy access and spending
  • Online exchange– You can store DASH directly at an online exchange. Using this method you can trade DASH to USD directly when the time is right. Not all exchanges allow DASH trading due to its anonymous nature. The top exchange at the moment is Poloniex.com.

About Genesis Mining:

Genesis-mining has a few different crypto-currency cloud mining options available, and choosing between them may be extremely difficult. One of the top considerations when buying a contract is the return on investment (ie: profit) for the cryptocurrency.

Genesis Mining is a cryptocurrency mining company located in Iceland. Genesis Mining provides evidence for the existence of its mining operation (live streams, videos of data-centers).  Their data-center page contains videos of wide angle sweeping shots of its data centers, along with their employees installing bitcoin mining gear. Iceland also has one of the cheapest electricity costs at 5.54 US cents per kWh (source Wikipedia).

Updates:
March 2017: DASH Mining on Genesis was Out of Stock for 36 hours.
March 20th 2017: DASH value and contract cost.
March 26th : value and network difficulty
May 4th : DASH contracts are now sold out

Click Here to Sign up with Genesis-Mining.  Remember to use the Promotion code “6bXKwD” to get a 3% off discount coupon!!

Disclaimer: Information contained on Boxmining.com is for informational purposes only. It should not be considered legal or financial advice. You should consult with an consultant or other professional to determine what may be best for your individual needs. Cryptocurrency and mining are subject to huge losses and/or gains.