Puzzle on crypto cloud mining projection & RE-investment

I would like to point out some key issues on crypto currency cloud mining projection and RE-investment you saw in Youtube everyday.

There are several factors affecting your calculation. Below are the parameters:

• Contract Setup/Purchase Price: This lump-sum is your initial investment. The lower it is, the sooner you will break even
• Maintenance cost per day: This is the on-going cost, often in $ not crypto. It will subtract itself from your daily payout
• Mined crypto before Maintenance: This will affect your Net Income
• Crypto Price of each day: It will affect your Net Income
• Difficulty adjustment: It will affect your Mined amount
• What pool you are in: Affect Mined crypto

What is the appropriate way to project your Net Income

In most Youtube video that ask you to use their affiliated links to join these mining contract, they go to a website that let you insert the cost, the contract price and the crypto price, that will give you a projection holding all variable fixed. In reality, this is very dangerous because the actual projection is a multi-variable calculation

For example, a fixed $ per day maintenance + increased in Bitcoin price will lead to increase in Net Income in BTC. For the same contract, the Net Income in BTC of a lower BTC price will be less because the maintenance in BTC is higher. The difficulties level will also change in every period, leading to less mined crypto, and thus less Net Income.

Thus I would suggest you calculate the Net Income for each period in 14 days. Repeat for each period with different BTC Price & Difficulties (thus decrease % of mined crypto) you would expect. Using a spreadsheet like Excel and Google Sheets will help a lot.

RE-investment

Somehow it is hard to judge the effectiveness of RE-investment although most Youtuber told you you should be doing so. The RE-invest process is using the crypto you received and buy additional contract. This means it will empty your mined coins with increase in hashpower, and the break even postponed.

When you have your projection spreadsheet ready, you can input your RE-investment amount to your Price and Difficulty assumption, see when it will break even, including your RE-invested crypto.

As crypto mined will decrease gradually, RE-investment will need to be decided carefully.