{"id":4869,"date":"2018-07-20T22:21:10","date_gmt":"2018-07-20T19:21:10","guid":{"rendered":"https:\/\/forklog.media\/?p=4869"},"modified":"2018-07-21T22:30:08","modified_gmt":"2018-07-21T19:30:08","slug":"cloud-mining-service-hashflare-terminates-bitcoin-mining-contracts","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/cloud-mining-service-hashflare-terminates-bitcoin-mining-contracts\/","title":{"rendered":"Cloud-Mining Service Hashflare Terminates Bitcoin Mining Contracts"},"content":{"rendered":"<p>Cloud-mining company Hashflare has announced Friday, July 20, it has terminated all active bitcoin mining contracts because they are no longer profitable.<!--more--><\/p>\n<p>The announcement was both posted on HashFlare\u2019s Facebook page and sent to users via email.<\/p>\n<p><iframe loading=\"lazy\" style=\"border: none; overflow: hidden;\" src=\"https:\/\/www.facebook.com\/plugins\/post.php?href=https%3A%2F%2Fwww.facebook.com%2FHashFlareGlobal%2Fposts%2F1743402749046796&amp;width=500\" width=\"500\" height=\"301\" frameborder=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>The company stated:<\/p>\n<blockquote><p>Dear users!<\/p>\n<p>As you know, the last few months have been a difficult time for the cryptocurrency market, which has also affected the operation of our service.<\/p>\n<p>We have made every possible effort in order to resolve the problem that has arisen \u2013 for instance, we have considered a variety of technical solutions, which would have allowed us to lower expenses related to maintenance and electricity. However, due to the general instability of the market, the actions we have taken could not significantly influence the current situation.<\/p>\n<p>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.<\/p>\n<p>BTC mining continues being unprofitable, in light of which we would like to inform you that on 18.07.2018 we were forced to start disabling SHA hardware and today, on 20.07.2018, stop the mining service of active SHA-256 contracts in accordance with clause 5.5 of our Terms of Service, which are required to be accepted when creating a purchase and are the basis of concluding the contract.<\/p>\n<p>We expect that the cryptocurrency market situation will stabilize in the nearest future and we will be able to offer our users new advantageous solutions.<\/p>\n<p>We will continue to inform you about any changes. Stay tuned for updates!<\/p>\n<p>Respectfully,<br \/>\nHashFlare team<\/p><\/blockquote>\n<p>Notably, just yesterday the company told users they must undergo the process of identity verification.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en-gb\">\n<p dir=\"ltr\" lang=\"en\">Starting from 19.07.18, all HashFlare users must undergo the process of identity verification. FMI: <a href=\"https:\/\/t.co\/hXGCMyIAWe\">https:\/\/t.co\/hXGCMyIAWe<\/a> <a href=\"https:\/\/t.co\/FWjCBsyKXt\">pic.twitter.com\/FWjCBsyKXt<\/a><\/p>\n<p>\u2014 HashFlare (@hashflare) <a href=\"https:\/\/twitter.com\/hashflare\/status\/1019945860313083904?ref_src=twsrc%5Etfw\">19 July 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As Cryptoglobe <a href=\"https:\/\/www.cryptoglobe.com\/latest\/2018\/07\/cloud-mining-company-hashflare-have-terminated-bitcoin-mining-contracts\/\" target=\"_blank\" rel=\"noopener\">notes<\/a>, with Hashflare recently raising the threshold for small withdrawals to 0.05 BTC and 0.1 ETH \u2013 the announcement might not be surprising to many who have paid close attention to the rapidly rising total Bitcoin hashrate and are sceptical of their cloud mining model.<\/p>\n<p>Indeed, mining profitability has moved on substantially from its early heyday where it seemed that almost anyone with a GPU could make a reasonable profit.<\/p>\n<p>With more and more miners getting in on the act, the total Bitcoin hashrate has risen dramatically in 2018 \u2013 currently standing at 44.3 EHash\/s.<\/p>\n<div id=\"attachment_4871\" style=\"width: 2264px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/forklog.media\/wp-content\/uploads\/2018\/07\/bitcoin_mining_hashrate_2018_07_20.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4871\" class=\"wp-image-4871 size-full\" src=\"http:\/\/forklog.media\/wp-content\/uploads\/2018\/07\/bitcoin_mining_hashrate_2018_07_20.png\" alt=\"Cloud-Mining Service Hashflare Terminates Bitcoin Mining Contracts\" width=\"2254\" height=\"756\" srcset=\"https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_hashrate_2018_07_20.png 2254w, https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_hashrate_2018_07_20-300x101.png 300w, https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_hashrate_2018_07_20-768x258.png 768w, https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_hashrate_2018_07_20-1024x343.png 1024w, https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_hashrate_2018_07_20-470x158.png 470w\" sizes=\"auto, (max-width: 2254px) 100vw, 2254px\" \/><\/a><p id=\"caption-attachment-4871\" class=\"wp-caption-text\">Source: bitinfocharts<\/p><\/div>\n<p>The problem also lies in the fact that while the total hashrate has almost tripled since January \u2013 the price of BTC during this period has fallen by more than half its December peak \u2013 resulting in a serious drop in profitability:<\/p>\n<div id=\"attachment_4872\" style=\"width: 1881px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/forklog.media\/wp-content\/uploads\/2018\/07\/bitcoin_mining_profitability_2018_07_20.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4872\" class=\"wp-image-4872 size-full\" src=\"http:\/\/forklog.media\/wp-content\/uploads\/2018\/07\/bitcoin_mining_profitability_2018_07_20.png\" alt=\"Cloud-Mining Service Hashflare Terminates Bitcoin Mining Contracts\" width=\"1871\" height=\"502\" srcset=\"https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_profitability_2018_07_20.png 1871w, https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_profitability_2018_07_20-300x80.png 300w, https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_profitability_2018_07_20-768x206.png 768w, https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_profitability_2018_07_20-1024x275.png 1024w, https:\/\/forklog.com\/en\/wp-content\/uploads\/2018\/07\/bitcoin_mining_profitability_2018_07_20-470x126.png 470w\" sizes=\"auto, (max-width: 1871px) 100vw, 1871px\" \/><\/a><p id=\"caption-attachment-4872\" class=\"wp-caption-text\">Source: bitinfocharts<\/p><\/div>\n<p>With Bitcoin enjoying somewhat of a mini bull-run earlier this week to break the significant $7,000 level, most of those that continue to mine &#8211; even without the additional maintenance costs of cloud-mining contracts \u2013 will do so largely with the expectation of a substantial rise in Bitcoin prices.<\/p>\n<p>Follow ForkLog on <a href=\" https:\/\/twitter.com\/forklog_en\/\" target=\"_blank\" rel=\"nofollow noopener\">Twitter<\/a> and <a href=\"https:\/\/www.facebook.com\/forklogen\/\" target=\"_blank\" rel=\"nofollow noopener\"> Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cloud-mining company Hashflare has announced Friday, July 20, it has terminated all active bitcoin mining contracts because they are no longer profitable.<\/p>\n","protected":false},"author":1,"featured_media":4870,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"human_written","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[627,586],"class_list":["post-4869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cloud-mining","tag-hashflare"],"aioseo_notices":[],"amp_enabled":true,"views":"318","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/4869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=4869"}],"version-history":[{"count":2,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/4869\/revisions"}],"predecessor-version":[{"id":4874,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/4869\/revisions\/4874"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/4870"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=4869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=4869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=4869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}