Bitcoin Cloud Mining

General Chat
1

I have been mining Bitcoin for around 18 months now, and have used two different mining companies to cloud mine my bitcoin. Earlier this week, I received an email from HashFlare telling me that my contract with them will be teminating early.

A bit of back story here. HashFlare offered lifetime and yarly mining contracts when I purchased the mining contract with them. I opted for a lifetime contract. This then changed to a yearly contract that would end 12 months from when they told me about this change. This meant my contract should have ended 31/08/2018.
There was a clause in their terms and conditions though, stating that if the mining fee that they charge was more than what was mined for 31 consecutive days, the contract will be cancelled.

This is all well and good, but their fee is huge which is why this has been the case. I have the same amount of mining power on both services, yet the other still continues to pay out daily. Something has gone wrong for HashFlare, and I’m currently sitting here with my popcorn watching their twitter mentions.

So just a word of warning to anyone that is thinking of going into cloud mining…

Don’t

I feel I am one of the lucky ones. I managed to withdraw and sell so that I got my money back. It would appear there are so many more that didn’t have this chance and have made a big loss. Yes, that’s the risk you take… but it doesn’t make it any less annoying.

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2

I just don’t see how cloud mining can be not a scam. If it was profitable they would be doing it for themselves.

I’m glad that you got out. I’d recommend just investing in your own mining hardware.

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Had I had thousands and thousands of pounds and no worry about electric costs I would have. However I don’t and decided to invest a few hundred into cloud mining.

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4

But (if you don’t mind answering), did it pay off? Or did you just end up taking out roughly the same amount that you originally invested?

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I sold what I had originally invested and have 0.095 in my wallet currently. My other contract is still paying out.

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this - if it was profitable they’d be doing it for themselves

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Seems like they’re using user’s “investment” as a way to guard against risk, and give them a share of the profits should it pay off. But it seems there are much better investments than essentially betting on luck and the trustworthiness of an unknown, unregulated foreign company.

At least if you want to bet on luck do it by yourself - that way there’s nobody that can just run away with your investment or pull the plug like described in this thread.

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Yeah, sounds like end users are essentially subsidizing the costs of mining for the service and in return are given a share of the profit

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Which would be okay in a regulated market but as it stands there’s nothing preventing those companies from pulling a runner and keeping your investment.

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I’ve been mining on and off since before bitcoin boomed, I think HashFlare is the only provider I’ve used who has ever actually completed a 12 month contract without going bust.

I gave up on it a few years ago. Coins don’t seem to be safe anywhere other than locally on your PC. I’ve lost significant amounts of coins through Mt.Gox, Cryptsy and a few others.

Mt.Gox didn’t seem like much of a loss at the time when all the claims were possible. Wish i’d done it though, could have bought a few houses with those coins!

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Are these clouds responsible for entering the series and my processor is used for BTC minning?

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Cloud mining is where you rent mining capacity from the provider so you’re not using any of your own hardware.