Hashflare Cancels Users’ Contracts While Genesis Mining Profitability Maintains Returns
Hashflare Cancels Contracts but Genesis Continues to See Profits
The risks continue to be higher in the world of cloud mining, but one would believe that with proper planning it can continue to be profitable. Even, with hiccups along the way.
Hashflare, recently cancelled all their contracts with Genesis Mining, whereas this could have been a huge hit for Genesis Mining. However, they obviously had their ducks in a row. Because, despite the massive cancellation they were able to maintain profitability.
— Genesis Mining (@GenesisMining) July 25, 2018
Now, what also could have been a huge publicity hit for Genesis turned out also to be a huge gain on a positive note. When you see a company take a massive hit in contact cancellation and remain in profit – speaks volumes. It was stated by Genesis that they have enough hardware to ensure this profitability continues and allows them to maintain ‘lower’ bitcoin market pricing.
Bitcoin itself has seen a massive growth over the past few days.
In fact, is up nearly 50% since its lows back in mid-June. The coin has now surpassed 46.8 million TH/s. This year, we are consistently seeing new mining power show up online and, in some instances, there has been dialogue about secret hashing power becoming on demand. Although there was a temporary but still massive crash with Bitcoin mining, we have seen them recover relatively quickly and nearly tripled its hash rate.
Now, the critics still state that cloud mining is risky and that buying an initial contract can be quite pricy, thus, increasing the risk. However, bitcoins and altcoins market prices continue to vary, and it wouldn’t appear that any contract gives security – as we have seen with Hashflare for example. Although Genesis mining is confident in their hardware, we will see if older contracts continue to carry out this way, their profits may only be short lived.