There are no guarantees in crypto currency.
We’ve been experiencing tremendous gains in crypto currency prices. This will end some day. Prices could crash at any time and for some coins they have already crashed.
We’ve put together an earnings calculator to give you an idea of earnings from your GPUs.
Here are some things that have happened in the past.
- Mt Gox Hack(s)Mt. Gox was one of the early large Bitcoin exchanges. They had a hack and insolvency issues. They couldn’t pay all their client’s Bitcoin back. They’ve been accused of it being an inside job. Regardless some $460 million in Bitcoin (850,000 Bitcoins) and $27.4 million in cash. The Bitcoin price fell over 23% as a result.
- Ethereum DAO Hack The Ethereum DAO was a form of decentralized autonomous organization and venture capital fund for Ethereum projects. It held over 11.5 million Ethereum. In June 2016 the Ethereum DAO smart contract was hacked. The hacker triggered the release of 1/3rd of the funds. This was eventually combatted by the Ethereum hard fork which led to the birth of Ethereum Classic. However the day of the hack the Ethereum price dropped 40%.I was mining Ethereum at the time. I went to bed and woke up the next morning to see my profitability drop dramatically. At the time I had purchased mining rigs on credit. Suddenly, between my credit card payments and electricity usage, I was barely making any money. I had to sell all my crypto as soon as I got it just to pay my bills.
- On the other hand, in 2017 crypto currency was booming. I purchased mining rigs in February 2017. Due to crypto booming and everyone getting into the mining craze… in July 2017 I was able to sell my used mining GPUs for more money than I purchased them new. I also had all that crypto I had mined during that time as this time I paid for my mining rigs in cash not credit. I had been able to save most of my currency and the value of the coins kept increasing.
- In late 2013 early 2014 we started cloud mining. Bitcoin was at $1000 for the first time ever. We decided it was too hard to mine Bitcoin directly so my business partner and I invested in another cloud mining company. They were mining a new altcoin that we thought had potential. It turned out to be a giant ponzi scheme. They didn’t have as much equipment as they promised. We lost our first $4000 in this cloud mining scheme.
We’re not investment advisors. We are only a hosting company to host your mining equipment. We cannot advise you on how much money you can make or how to invest your funds. Please seek advice from a professional financial advisor and accountant.
Mining for Bitcoin, Ethereum, and crypto currency is fun!
It’s a little bit like dollar cost averaging when you invest in stocks. Your equipment creates currency every day. Once your equipment is paid off it is generating residual income for you every day, week, month, and year.
Unlike investing you own equipment. If you invest in crypto currency and trade it on an exchange you risk losing your entire investment. If you own the equipment that equipment should have some resale value for you. It is also an asset that can possibly be written off as a tax deduction (talk to your accountant.)
Mining also helps support the network. The crypto currency couldn’t survive without a network to support and process all the transactions.
With Crypto Gulch you control your own currency!
We offer an interface for you to put in your own wallet address. We mine directly to that wallet address for you.
The frequency with which you receive payments is based on the speed of your mining equipment and the coin you mine. The more equipment you purchase the higher your hash rate and the more currency you will mine on a daily basis.
We can guarantee 100% up time because of our hosting fee. We simply forgo some of our normal mining for hosting fee. Let’s say that we had an outage for 4 hours. We would simply give up 4 hours of normal mining your equipment would do for the monthly hosting fee. We’d mine 4 less hours than normal to ensure that you always get your full time mining. Even if we have an outage of 4 days, we can simply give up 4 days worth of our normal mining.
We also own some of our own mining equipment. If there is a major outage such as a need for some of your equipment to be replaced under warranty, we can let you use our equipment temporarily while we return your equipment to the manufacturer for replacement.
Finally, because we are a professional mining operation, we have safeguards and systems in place to help ensure we operate at full capacity. We have remote monitoring solutions to help prevent outages and keep them as brief as possible.
You purchase a GPU or GPUs from us. (GPU = Graphics processing unit) We have a few pre-defined plans but you can purchase any quantity you wish.
The GPU price includes all the extra hardware it takes to run a mining rig, plus our setup fee. You will own the GPU from that point on. We’ll own the rest of the equipment that makes up the rig plus the underlying infrastructure needed to make it all work.
We try to fulfill orders from inventory we have on hand. If so your miner will be activated within 24 hours of you placing your order and giving us your wallet address. However, sometimes we have to purchase new equipment. As soon as the inventory arrives, we’ll setup the mining rig for you.
If you have a wallet address already, we can mine to your address. If you do not have a wallet we can also assist you with setting up a wallet address. A wallet is like a “bank account” for crypto.
We offer an interface to check your statistics and make updates to your account. You can also follow the process of coins being mined and deposited into your wallet. Depending on the hash rate of all the GPUs you purchased combined, funds will be deposited into your wallet on a regular basis. The more GPUs you own the faster your hash rate and the more coins you mine faster.
Hosting fees are taken out automatically! No need to setup a credit card for monthly payments. We simply mine a percentage of time for ourselves on your equipment to cover the hosting fee. This fee is taken out daily. If there is ever downtime on your rig, we make up for it by taking time away from our mining to mine more time for you and make up for the downtime. That way we guarantee you 100% uptime. (Our competitor guarantees only 93.5% uptime!)
I’m Ben Fitts. I have been an entrepreneur for most of my life. I’ve been very involved in the Internet movement. I ran a consulting company setting up internet providers back as early as 1995. CP-Tel Network Services hired me back in 1995 to setup their dial up internet services and web site. They still exist today. I also have 20 years experience as a web developer and system administrator.
I began mining back in 2013. I learned a few difficult lessons including my first $4,000 loss. Since 2016 I began mining in earnest. I now am a partner in MinerParts, a company that sells hardware and components for miners. MinerParts has been selling to miners since July 2016.
I’m making my expertise available to a few of my friends and family. They don’t have the time to learn how to mine crypto or keep up with the market. I do. I’m already doing it for myself why not make my experience available to others? Why not make my expertise at getting and building the equipment available to others?
This is how Crypto Gulch came to be. I wanted to get my mining rigs out of my house. My mining operation was growing too big. At the same time, a few of my friends expressed interest in getting started mining. Crypto Gulch became a way for me to expand my own mining and help some friends at the same time. Win, Win!
Yes! The GPUs you purchase from us are yours to keep. You can have us ship them to you for a small fee or we can help you sell them by offering the GPU to some of our other customers.
Genesis Mining is one of the largest mining companies in the world. They’ve been offering cloud mining contracts since 2014.
Genesis offers 30 MH for $870 for 2 years. You do not own the equipment this is a lease. They do guarantee the lease rate of 30 MH and 100% up-time.
Not only are our rates lower but you own the equipment. We offer a plan where you own the 30MH GPU for $650. That’s $220 cheaper than Genesis.
While we do not guarantee 30 MH the equipment is yours. If there are technology improvements such as drivers or software your hardware could perform at higher rates. If the technology decreases due to increasing difficulty mining (this is a guarantee that mining will get more difficult over time) you can resell the equipment to purchase new/better technology.
Genesis Mining contracts also limit you to one coin and one technology. With our system, you are in control. You can switch to mining another coin at any time. You can pick the most profitable coin to mine anytime you wish.
One advantage to Genesis… We do charge a hosting fee by mining a portion of the time to our own wallet. This covers maintenance fees, utilities, security, insurance, etc. Genesis includes that in their 30 MH price. Over time it may be more expensive to mine with us than with Genesis… but we require less upfront money and you own your own equipment. We feel that owning your own equipment is a huge benefit to Crypto Gulch’s services.
Why not both mine and invest!?
Investing is risky especially since the price of a coin can vary wildly. Coins are traded 24/7 and even on Holidays. There is no downtime. You can go to sleep and wake up and find some “bad news” caused your portfolio to lose 10-20% or more. It is possible to lose some or all of your investment. It is entirely possible the coin you are invested in crashes and goes to nothing. This is probably less likely to happen with a major coin like Bitcoin but it has definitely happened to some of the smaller coins I’ve owned.
With ownership, you invest in hardware, not a coin. That hardware will mine crypto coin for you 24/7. The maintenance of the hardware is automatically deducted as a part of your hosting fee. No bills for you to pay and 100% uptime guaranteed (downtime comes out of our hosting fee.) The crypto is directly deposited to your wallet address. There is NO pass-through of currency and you can see your specific hardware stats at any time.
With ownership, you also can write off the equipment for taxes or resell it. With a lease, if the vendor goes out of business you lose everything. (This happened to us in 2014.) If this happened with us, you’d still own the equipment and we’d make arrangements to ship the equipment to you or assist you in reselling it. Whichever you prefer. (A small fee would apply.)
In 2018 we’ve also seen issues where a coin is in high demand but may only be traded on a few exchanges. Those exchanges are closed to new customers due to their lack of ability to keep up with onboarding of new users. (Bittrex for example.) You couldn’t go onto an exchange to buy the coin unless you had previously created an account on Bittrex. The only way to get it was to mine it.