Hashflare-One of the largest mining firm by the Team of mining experts ‘Hashcoins’ during an official press release stated that they are shutting down their cloud mining services for the Bitcoin contracts as mining during this era of market downfall is not proving to be profitable.
As per the company stated in a press release:
“SHA-256 contracts mining is proving to be very unprofitable these days, in light of which we would like to inform you that on 18.07.2018 we were forced to start disabling the mining hardware and today, on 20.07.2018, we are stopping the mining services for Bitcoin as per with the reference of clause 5.5 in our Terms of Conditions.”
The company further stated that due to the volatility of prices in the crypto market, the current profits from mining are decreasing day by day than the actual mining maintenance costs due to which the the customer who have bought bitcoin mining contracts are not getting any profits though even after several steps taken by the company to withstand this market instability.
The mining was disabled with reference of clause 5.5 in the Terms and Conditions of the company which states that the firm holds complete rights to terminate its mining service contracts for the users, if mining remains unprofitable for a consecutive time period of 21 days.
This sudden shift of Hashflare to the no mining zone without declaring a proper clarification to its customers regarding their present funds with the company, looks like some kind of exit scam plan. Further, it seems even more suspicious as even then after declaring no mining, the company on its twitter page stated:
“We are always attentive to existing international standards and regulations and the current update is aimed at ensuring compliance with KYC/AML standards. In order to provide our services we are periodically required to identify users on our platform.”
Though its certainly true that the cloud mining firms are facing a very big issue with mining process as the current difficulty level of Bitcoin has increased to more than a 100% as compared to the previous year and is expected to increase even more in the upcoming days. Without the unavailability of proper ASIC mining chips the mining sector seems to have not a very good future ahead. Mining is a key element of the crypto eco-system and Proof of stake might become a revolutionary key in changing the mining sector in mere coming future.