July 23, 2018 322By Adrian Barkley
“Hashflare, a cloud cryptocurrency mining platform, abruptly shut down bitcoin mining service and canceled all active bitcoin contracts, citing weak profit amid difficult cryptocurrency market. In a Facebook post, the company noted that BTC mining continues being unprofitable and it started disabling SHA hardware on July 18. On July 20, the company stopped the mining service of active SHA-256 contracts.”You can see the full report for yourself, here. This is as a result of months of negative movements form Bitcoin, movements that have been part of a very difficult market. Because of this, the amount of FIAT currency Hashflare have made through Bitcoin mining specifically has actually been less than the maintenance costs of the equipment alone, meaning that Bitcoin mining in essence, became completely unprofitable. According to Hashflare:
"We have made every possible effort in order to resolve the problem that has arisen - 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."One of the major problems here is that many users have subscribed to a full years worth of access to the mining service. Therefore, these customers are now out of profit as many still have months left of their subscription. In essence, they have paid for access to something they now no longer have access too. Of course, this could be rectified with a refund but as it stands, no Hashflare customers have been issued with such compensation, instead, Hashflare are promising to offer their customers a more promising solution, once the markets re-stabilize. Overall, we’re not feeling very confident about this. If Hashflare are relying on volatility to end in the markets before they compensate the customers they have essentially stolen from, it says a lot about their future plans and lack of a fail safe procedure. Overall, this could be but the start of the demise of Hashflare and perhaps we can expect other mining pools to follow suit too, as the mining industry becomes less profitable by the day.