Is Hashflare Really Gone? Is this the End of Cloud Mining? So I contacted Support..Here is Their reply

in #cloud-mining6 years ago (edited)

Hello my dear Steemit Friends!

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So after many days of waiting for a change ... I come to write this article here on Steemit.

I have for a very long time now a mining contract on Hashflare of 316.06 TH/s of Bitcoin Cloud mining.
Now we all Know that there was a spike of 14% in mining difficulty ...but this wasn't the problem , the problem was that the maintenance fee tops all our rewards.

For this I give my example of 316.06 TH/s :

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And so I wrote a message to Hashflare support:

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Their reply:

Amely (HashFlare Support)
Jul 5, 10:57 EEST
Greetings,

On 05.06.18 the spike of mining difficulty exceeded 14% (https://bitcoinwisdom.com/bitcoin/difficulty), while the price of Bitcoin continues to decline. Because of this, the payouts are lower than the maintenance fee, which results in the balance not increasing and remaining the same. This means that your balance will neither decrease nor increase. Also, due to the fact that contract payouts are lower than maintenance fees, forecast revenue shows zeros.

According to our Terms of Service, the mining process continues while said mining is profitable. This means the Mining process will stop if the Maintenance and Electricity Fees become larger than the Payout. If mining remains unprofitable for 21 consecutive days the Service is permanently terminated (Hashrate type specific). During the consecutive 21 day period, Payouts and Fees will also be temporarily stopped. If during the suspension period, the Contract-related mining factors (such as the exchange rate and mining difficulty) that are outside of HashFlare’s control will change favorably, making mining profitable again, the Service will be unsuspended and contracts reactivated.

Unfortunately, we cannot influence the global factors that form profitability, neither can we take responsibility for it. The main factor that influences mining profitability is mining difficulty, and you can find the publicly available growth chart here and here. Cryptocurrency mining, trading, handling and etc. are generally highly volatile and unpredictable.

All risks are stated in our Terms of Service.​

We are considering all possible options, while taking into account the available resources, to optimize the mining process where it is possible.

Best regards,
Amely
HashFlare.io Support Team

And that was it...no solution...not an answer really... BUT If you my dear reader have a solution or an answer please post them in the comment section bellow. Cynetyc Out!

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Cool that is wonderful thank you very much @SteemitBoard!

I’m so sorry to hear that. Actualy we have been talking with other steemiens about bitcoin’s price and mining. It seems it’s coming to the point when mining stops being profitable. I don’t exactly know what your contract says, but as you mentioned, shouldn’t you be able to mine something else, or is that non profitable either?
BTW: great to hear from you again!
I hope you are well!

Unfortunately on Hashflare for the moment I cannot change my mining power to another coin.
I did ask them to change to eth but ...no direct reply...only that robotic support response.

All currencies are in a significant decline
Great information provided by us thank you
You are a really wonderful investor

For the moment it is a grim sight for cloud mining contracts.

excellent post,my dear friend @cynteyc,very good information, i like it this post all time,i really love this beautiful investor,thank you so much for sharing your post,

If somehow I will find more information ...I hope a positive one I will come back with an update on this post.

It’s exciting to see you back! Unfortunately not in a great circumstances. If your rewards don’t increase and decrease at the same time and If you have maintenance fee, how in the world can you be able to mine? If bitcoin was below 1000 just a year ago and now it’s at almost $6k how it’s still not profitable? Something doesn’t make sense. I’m aware that mining cost in the US is at around $7k. Have you considered mining in diferent countries with much lower mining cost? Is it possible?

I think the best solution is just to invest in btc when the price is down and gain rewards when the price will be up again.
For the moment I do not see a viable option in mining at this point ...unless you have a very low electric cost and a very big hashrate ...much bigger the 316....and that would mean that you will need to have more then 25 antminers s9.

Most proof of work coin is not that profitable and the power usage for these mining rigs are too high.

That is very true @obest. It came to a time that all this equipment is obsolete due to the mining difficulty and of course the high cost.

Great information you shared for update your followers. After reading this blog think cloud mining was gone.

Yes ...I do not know what will happen in the future ..but I believe mining and especially cloud mining is not profitable any more.

I mine Ether with this company and make regular withdraws no problem. THe problem is with BTC - the hardware is getting stronger and stronger every quarter as more and more products are being cheaply released - this will result in a higher difficulty as more nodes enter the mining game making it not profitable to cloud mine - this is also true with mining. Best to trade BTC rather than mine it.

Exact... this is the same conclusion I arrived too....ether and other coins like monero are still profitable to mine or even to invest.
Bitcoin has grown to much in difficulty and ...if no serios upgrade in miner th/s like for example a miner with a capacity over 50 TH/s easy to use and low in power consumption...I do not see a future in mining btc right about now.

Those are some terrible news... Once again bad news from the world of cloud mining.
I hope that the situation will improve for you and all those who had invested in Hashflare.

I hope that too @mindlock , but the future it looking pretty grim right about now.

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