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Hashflare Disables Bitcoin Mining Operations

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Despite the price of Bitcoin rising significantly this week, cloud-mining company Hashflare announced they will be disabling BTC mining due to it no longer being profitable.

They released the statement on Facebook, which reads:

Clause 5.5 of the Hashflare Terms of Service reads:

5.5. The Mining process continues until said mining is profitable. This means the Mining process will stop if the Maintenance and Electricity Fees will become larger than the Payout. If mining remains unprofitable for 21 consecutive days the Service is permanently terminated (Hashrate type specific).

They claim to have made every possible effort to find a resolution, such as lowering electricity costs, but were unable to improve the situation.

The total Bitcoin hashrate has grown to 44.3 EHash/s, approximately 1 million billion hashes per second. That is almost triple what it was at the beginning of 2018, when Bitcoin was double its current price.

The notice doesn’t indicate whether users will be refunded for their initial investment and it seems unlikely that they will. A brief read through the comments on the Facebook post reveals some very unhappy customers with a number of users calling the company a fraud. Some suggest that the reasoning for ceasing operations doesn’t make much sense since Hashflare could have just kept on paying out zero balances until mining becomes profitable again.

The announcement comes hot on the heels of a request the previous day for users to undergo identity verification to comply with know-your-customer (KYC) and anti-money laundering (AML) standards. Whether the two occurrences are somehow related is yet to be seen.

Cryptocurrency mining does seem to have come up against difficulties lately, with a Taiwanese chip manufacturer recently announcing a decrease in estimated revenue due to a forecast of reduced sales.

Image From Shutterstock

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