Envestio – Update and Cryptomining projects at a closer look

This post is also available in: Deutsch (German)

Well, nearly a half year went by since my last post about Envestio . Who has read my previous posts (here and here), might remember that I am a bit critical towards the marketplace. The performance of the platform although left a positive impression. Installements were on time, so I should not lament. Exactly this is a point, which I still find weird: no lates (or did you have some?) or something, only business as usual? This just leads me to believe that not every installement is paid directly from the borrower. I can imagine a scenario where the borrowers have allowances (and for some projects you see them in the description), and the repayment is taken from the allowance. Important for me is, that we see new projects on the marketplace, not more tiers of existing projects (which is okay to have, but not exclusively). Most projects on the platform are not rateable for me as I have no clue about wooden pellets or fish 😉 But recently there were projects I could proxy a bit.

Crypto Mining Projects

Firstly I try to explain for what crypto mining is needed, I am no expert in this field, so forgive me my superficial approach. Mining basically approves transaction within its network, at least with Ethereum. So if A send 1 ETH to B, this must be confirmed by the network, and this is what miners do. Some transactions together go into one block, and who finds the block, gets a reward in Ethereum. But this network can do more, there are apps on it (dapps = decentralized applications etc). So there really needs to be miners 😉

During the past weeks there were two such projects added on the marketplace, with a volume well over 1 Million Euro. In the project description we can see that the borrower got an order to build a mining rig containing of GPU’s. At first I thought now way there are GPU’s costing 900 USD per piece, but GTX 1080ti GPU’s are that expensive, and there are others which cost double. Money for which you get a good laptop, but this may be comparing apples and oranges. The nice thing about mining is, that it is calculatable and therefor we know the profitability. I used whattomine.com to calculate the profit. I was very fair and assumed electricity costs of 0.05 USD per kilowatthour(KWh). If you mine Ethereum, then you make 61 cent net per day, so amortising one card has a duration of 1475 days. Not the best point to start I think. Surely there are more profitable tokens to mine, but with less market cap and less volume to trade, so price swings are normal. Furthermore these results are from one point in time. Usually the mining gets more difficult when more people start mining, which happens when prices are increasing. As long as the difficulty increases less then the price, everything is okay and profitability is better.

Whattomine.com with 0.05 USD power cost and using a GTX 1080ti GPU

There seem to be more efficient GPU’s to mine then the above mentionned one.

Conclusion

At the moment everything is fine in Envestioland, but I think one should really think twice before investing in mining. It really was glad to see that these projects filled in more time then others. So people are actually watching in where they invest in. Don’t get me wrong, basically I really like Envestio’s idea: Support companies and help the economy grow. This safes jobs and creates more. For investors it is great as well, fund a great cause and get high yields. But with high yields, normally comes high risk 😉

New Investors get 0.5% Cashback (for the first 270 days) plus 5 Euro starting bonus, if you register through this link. There are not always projects available, so best strategy is to deposit some money and act quickly once you get a notification about a newly added project.

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