HashFlare, a cryptocurrency cloud mining company announced that they will be resuming their mining services. The cloud mining company’s SHA-256 mining process will resume on 28th July 2018 at 00:00 UTC.
The team commented:
“Throughout the last week our team has been focused on finding the optimal solution, that would allow us to resume mining SHA-256, and we are happy to announce that as a result of diligent work, such a solution has been reached.”
Cloud mining provides hardware power to miners to mine cryptocurrencies remotely through hosted cloud-based services. With the cloud-based services, the miner can purchase the mining power of hardware which is hosted and owned by a cloud mining service provider.
HashFlare provides mining services for Bitcoin which uses SHA-256 algorithm miner, Ethereum using ETHASH algorithm miner, Litecoin using SCRYPT algorithm miner, ZCash using Equihash algorithm miner and Dash using X11 algorithm miner. The services provided by HashFlare includes configuring and maintaining the hardware. Currently, apart from the Ethereum ETHASH algorithm mining, the rest is out of stock
On 20th July, HashFlare had released a statement on social media stating that their operation service was being affected because of the continuous dip in the cryptocurrency markets. They said that they looked for solutions to the problem including technical solutions which would have reduced the electricity and maintenance expenses. The measures taken by the company was frail due to the instability of the market.
“For over a month our users encountered a situation when the payouts were lower than the maintenance fees, resulting in zero accruals to the balance. As of 18.07.2018, the payouts were lower than maintenance for 28 consecutive days.”
HashFlare disabled all the SHA hardware mining on 18th July 2018 and on 20th July 2018, they stopped mining services for all the active SHA-256 contracts. This decision made by the company was in accordance with the Terms of Service which is agreed upon by all the customers during the purchase of the service.
Many consider that the suspension of the Bitcoin cloud mining uncanny as the announcement was made when Bitcoin [BTC] had started to rise and the market cap also witnessed a significant rise. Moreover, customers of the company faced difficulty withdrawing their money after the suspension of the operations.
On 16th July, the Bitcoin blockchain had stopped producing blocks for nearly an hour. There were around 18,000 unconfirmed transactions and the pending transaction fees jumped to $12500. This led to the transaction which had low mining fees remain unconfirmed.
To top this, there was a drop in the Bitcoin hashrate at the beginning of this month. This was because of the Sichuan flood on 29th June which destroyed the mining hardware. Sichuan, a province in China is also known as the Bitcoin mining capital of China. The flood led to a damage of around tens and thousands of mining devices which were irreparable. This resulted in the drop of Bitcoin hash power from 43 million TH/s t0 30 million within 24 hours.
Ashwin Mitra, a Hashflare user from Bangalore says,
“I invested close Rs. 7 lakhs [$10,000] on the SHA-256 mining service on Hashflare around December, right when Bitcoin was at its peak. Everything seemed profitable and it even felt like I could triple my money in 6 months. The drop in prices and the increased difficulty has made this investment a terrible idea. I know people who use Genesis who are still getting a payout. The drop in hashrate and still not being profitable really questions Hashflare’s tactics. I hope BTC rises in price so that atleast I can recoup my initial investment”
Bccponzi, a Twitterati said:
“How convenient, just 2 days before another 12% increase of difficulty. The only reason you guys did this, is to stop credit card refunds. The only reason you guys did this, is to stop credit card refunds. This is only a solution to Hashflare problems, not to those of the customers.”
To which, OneMillionSounds, another Twitterati said:
“I totally agree, here comes more BS. wish it was real. payout fees would have to be reduced by 90% atleast to have a decent system… Sadly its clearly because they want people to stop refunding their credit card money. they probably lost millions already.”
Thinus, a Twitterati said:
“I just need 0.01btc to be able to withdraw and be done with you.”
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Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry
Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.
In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.
The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.
Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.
The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.
At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.
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