Genesis Mining is probably the largest and most known crypto cloud mining operation. They are based in Iceland, seem to have a large and fully functioning mining premises, and have paid out reliably to many investors.

Their pitch, on their website is ‘It’s super simple – Your mining rigs are already set up and running. As soon as you’ve set-up your account you can start to earn your first coins from our bitcoin cloud mining service.

It sounds good, in theory, but cloud mining has a bad reputation. Almost all cloud mining operations seem to turn out to be a Ponzi scheme. There are reasons for this, which we will mention below. At the moment, there are two major cloud mining services: Genesis Mining and Hash Flare.

Genesis claim to operate several mining farms across Europe, America and Asia, but say they won’t disclose the exact locations for security reasons.

There are many reviews and complaints of people having sent Genesis Mining their money, and then not receiving regular payouts, or of the payouts stopping altogether, or payouts being so low that they will never break even on their investment. Many also complain that their customer service is lacking.

At the moment, there is no proof that Genesis Mining is scam, but, at best, it doesn’t seem like the greatest or safest investment. One could in theory put that same money into Bitcoin (on a dip) and wait for the 2-5 years equivalent that the Genesis Mining contracts would be worth, and hope that Bitcoin would go up in that period – that wouldn’t provide daily returns, but neither seemingly does Genesis Mining, to many of their investors.

This is their promotional video

How Does Genesis Mining Work?

Genesis claim to operate several mining farms around the world. These are large buildings hosting a lot of crypto mining equipment, which would be running 24/7.

You have no control over the computer(s) that do the mining. They operate 24/7. If you want, you can watch a live stream of them. Once a block is found, you get the reward after the fee of the company is deducted. Block rewards are automatically sent to your wallet.

You would get an account page on the Genesis Hive website ( which has lots of details and statistics about the whole process. You don’t need to know a single thing about cryptocurrency or mining to use the system.

They sell cloud mining services for the following cryptocurrencies: Bitcoin, DASH, Ethereum, Litecoin, Monero, and ZCash. However, we should mention that only the Bitcoin and Dash services were being offered at the time of this review, although this changes regularly, we’ve never seen all of the offerings being available at any one time. Other services are listed as “out of stock”.

Genesis Mining sells hash power. Simply put, hash power determines how strong a mining computer will be. Basically, the higher the power, the more blocks it can find in shorter time. Think of it as the CPU power for easier understanding. Hash power is defined as “MH/S” and there are different plans you can buy. For example, the options for Ethereum were these:

  • 40 MH/S Hash Power: US$1,520
  • 120 MH/S Hash Power: US$4,440
  • 360 MH/S Hash Power: US$12,960

These prices buy you two years of Ethereum mining time. The payment is done all at once. In return, you get to keep all the blocks that are found by your hired hash power. No refunds – once you make the payment, you can’t get it back.


Is It Profitable for investors?


For easy understanding, we will use Bitcoin as an example. The explanation below applies to all other currencies.

  • The basic plan for Bitcoin for 1 TH/S hash power. This costs US$275 (this has recently gone up substantially from $179)
  • This is not the only cost of the service. According to mining agreement you digitally sign, you also need to pay a fee of $0.14 per day TH/S for every day for the 5 year contract. This fee is deducted from the BTC payouts.
  • Many people seem to claim not getting daily payouts and payouts being so low as to not get back their initial investment.

Increasing the hash power (for example, buying the bigger package) is not the solution. The bigger the package, the bigger the fees are.

The profit you would get would depend on the value of Bitcoin- which tends to fluctuate rather dramatically. But you are also relying on Genesis Mining staying around and paying out for the 5 year duration of the contract you are buying.

Is Genesis Mining a Scam?

Let’s list a couple thing about the reputation of Genesis Mining:

They have Facebook, Reddit, and BitcoinTalk accounts. It seems that roughly 90% of all comments and reviews about the company are negative. People are complaining about no payments are being made, how customer support is useless, and overall, they feel like they are scammed, or at the very least, have made a bad investment and won’t see their initial investment back.

Their community representative has a Reddit account who has on occasion been less than polite to other users – you can see at However, one of her comments is extremely important: She says “legally, your payment just buys hashing power an nothing else. We don’t guarantee any payments. You paid for hash power, you got it. End of story. It is a gamble.”

We won’t claim that Genesis Mining is a scam. We also won’t say that it is a Ponzi scheme which is about to collapse. The decision is yours. However, it is worth asking whether if you had hundreds of ASICs to mine the most valuable cryptocurrencies, why hire them out rather than mine them for yourself. It seems that the profit from payments might be higher than the profit their customers get from the mining.

Genesis Mining – about the Company

Genesis Mining were established in 2013. The current CEO is Marco Streng and the CTO is Stefan Schindler. Mr. Streng is a mathematician and Genesis Mining is his only business. Mr. Schindler is also a zoologist.

They have two registered addresses -in Hong Kong and Iceland. These are “Borgartuni 27 105 Reykjavik” for Iceland and “Chinachem Century Tower, 31/F 178 Gloucester Road, Wanchai” for Hong Kong. According to Google Maps, that address in Iceland belongs to a travel service called “Iceland Limited”. (Note that the map data is from 2018.) The address in Hong Kong is a tower – probably only an office. This is an interesting address, because Chinachem Century Tower is actually listed on Offshore Leaks (Panama Papers) multiple times (1).

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