Genesis Mining is a popular cloud based Bitcoin mining platform that lets users mine for Bitcoin. Each user is placed on a contract, through which they are allocated provisions in order to be able to mine through the platform, differing platforms offer differing rewards but of course, the bigger the reward the more expensive the contract, therefore, Genesis Mining have had to make some cut backs in order to ensure that those on the big contracts still have access to the service, as a result of the collapsing value of Bitcoin.
In essence, those on smaller less significant contracts are now costing the company more than they actually earn, they aren’t even breaking even and therefore, some users have seen their contracts come to an abrupt end. According to The Next Web, Genesis Mining have made an official statement about the matter:
“Unfortunately, Bitcoin went into a downward trend around January. This trend combined with the heavily rising difficulty around April and May reduced mining outputs even further. As a result, some user contracts are now mining less than the daily maintenance fee requires to be covered, and thus they entered the 60 days grace period, after which open-ended contracts will get terminated.”
Moreover, according to The Next Web:
“It was reported around a month ago that one of Genesis Mining’s main competitors, HashFlare, was experiencing similar problems, and subsequently began terminating unprofitable Bitcoin contracts, Litecoin, Ether and Dash were unaffected. However, at the time it was reported that Genesis remained profitable. It seems this is no longer the case.”
See more for yourself, here.
Now what happens?
Those who had smaller contracts are now without service and it’s unlikely that they will be able to resume service anytime soon either. As Bitcoin’s value falls, the difficulty of mining increases, as is the cost to mine through growing costs for hardware and energy bills. The industry and becoming less and less cost effective. Moreover, the depleting amount of ‘mineable’ Bitcoin means that eventually, the entire industry will become redundant. Of course, other cryptocurrencies can still be mined but for Bitcoin specifically, more projects like this one will see an end of the line soon enough.
That is unless the price of Bitcoin manages to skyrocket past the expenses involved in buying running and maintaining mining equipment. If the value of Bitcoin jumps up faster than the price of energy bills, perhaps we will see a change in the climate here. For now though, users who carried out small mining projects within Genesis Mining are no longer able to do so.