Mining hardware comparison - BitcoinWiki

HashFlare’s Exit and the Future of Cloud Mining

Cloud mining — a service that enables individual users to lease hashing power from dedicated cryptocurrency mining operations — came forth as professionalization and cartelization of the mining business began to drive out smaller and insufficiently equipped players from the scene.
Since there is no way to verify that the share of the mining rig you are supposedly leasing actually exists — even if returns on your investment seem to be flowing regularly at first — the scheme is widely regarded as a happy hunting ground for scammers. Perhaps the only way to steer clear of fraud is to rely on the reputation of the established cloud mining brands. But with the outbreak of the recent scandal around the cloud mining platform HashFlare, this option might also soon be off the table.
HashFlare, one of the leading names in the business, announced on July 20 that it has dropped its mining service of active SHA-256 Bitcoin contracts, pursuant to a clause of the platform’s terms of service reading the following: “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.”
Citing the ongoing “difficult time for the cryptocurrency market,” the firm claimed that by July 18, the payouts were lower than the maintenance fees for 28 days in a row, which activated the clause allowing for the the conclusion of the contracts. The statement implied that HashFlare would be open to resume Bitcoin mining, should more favorable market conditions arise. Apparently, the cease only concerned Bitcoin contracts, as operations with other crypto assets available in the firm’s portfolio — such as Litecoin and Ethereum — proceeded as usual.
While this July has not been the brightest month ever for the crypto market, especially in comparison to December 2017, many users have rightfully questioned HashFlare’s reasoning. After briefly touching the floor at just above $6000 in the first days of the month, Bitcoin prices entered a steady upward trend, coming close to $8000 by the day that the contract termination was announced.
Additionally, the first week of the month saw the Bitcoin network’s hashrate drop massively as a result of heavy floods in the Sichuan province of China, home to a dense conglomeration of mining rigs. This should have led to a corresponding decrease in difficulty for the rest of the nodes. Even before the disaster, around the time when the mining platform’s dry season allegedly started in mid-June, the network’s hashrate plummeted to around 30 TH/s. As the HashFlare’s account of things seemed to stand in contrast with a widely accepted version of reality, the allegations of fraud began to pour out.
Stranger things
The cost structure for participating in the HashFlare enterprise consists of two types of payments: a one-off investment in the processing power itself, and recurring maintenance fees — normally covered from mining profits. One of the several poignant circumstances accompanying the announcement is that the cloud mining operator decided to terminate the contracts without reimbursing users for the remainder of the annual contract fees, which they had paid upfront.
The current mishap appears to be at least the second time on record when HashFlare unilaterally altered its contractual commitments. 11 months ago, the platform switched all SHA-256 and Scrypt contracts from lifetime to one-year, on the grounds of global mining hardware scarcity. Obviously, many cloud miners did not appreciate this development and there was even a petition on Change.org with some 2,500 signatures.
Coincidentally, those who held lifetime contracts before September 2017 can derive some satisfaction from the fact that, in the wake of the recent debacle, their losses were modest. Since the yearly contracts that relaunched 11 months ago were set to expire late August, these customers are only losing a month’s worth of shares of their yearly investment in hashing power. Compared to them, people who jumped in during the year are suffering a greater degree of damage, with the most recent investors finding themselves in the worst-case scenario.
Granted, infuriated cloud miners took to Twitter and Reddit right away. A sizeable group of people who suspected HashFlare of being a scam finally had the chance to savor their ‘I told you so’ moment. The Twitter user who goes by the moniker ‘Madoff wasn’t on the blockchain’ and specializes in exposing crypto fraud, gloated over what he considered evidence that HashFlare never really had actual mining facilities — despite boasting a brand new data center just a few months earlier. He also brought up a February interview with the firm’s customer relations manager Edgar Bers, pointing to numerous ‘red flags’ — inconsistencies that allegedly indicated the operation’s fraudulent nature.
While some users reported they were able to initiate the chargeback process for HashFlare payments with their credit card issuers, the less lucky ones said they were considering a class action lawsuit. The operator is based in Estonia, so strict European consumer protection laws could be potentially applicable to the case. However, some observers surveyed by Blockonomi noted that, by the time the claim makes it to court, the defendant could cease to exist or fight back by exposing the users’ personal data.
Another odd detail that plays right into the ‘scam’ argument is the new withdrawal regulations that HashFlare put in place just days before dropping the Bitcoin contracts. All of a sudden, the mining operator urged users to comply with a set of KYC procedures, severely restricting the ability of those who failed to comply to move their funds out of the platform. Assuming malicious intent, this move could serve at least two purposes: hindering the flight of capital upon the release of the news and getting some leverage over the disgruntled users who will make it to the courtroom.
Cloud mining’s dim future
Albeit there are many considerations that could point to malice, none of them look indisputable. In terminating the contracts, HashFlare followed the clause of their own terms of service, which every user had to sign upon registration. These terms were found to be unaltered since at least last year. The clause in question does not specify a particular entity that is supposed to certify that maintenance and electricity fees indeed exceeded the mining payouts. And. even if the evidence that those data centers actually exist is scarce, robust evidence that they do not exist is even scarcer. Hopefully, a trusted third party will soon enter the scene to shed some light on the true state of affairs.
Meanwhile, HashFlare’s competitors are doing just fine. Users on another major cloud mining platform — Genesis Mining — reported getting payouts on their contracts as usual. So did the customers of Minergate. HashFlare’s fluke might well provide a short-term PR boost to other major players in the field, as well as an influx of new users who will want to switch to a presumably more reliable operator. But, in the long run, the fallout from the demise of one of the most prominent cloud mining operations could prove a massive blow to the whole industry.
Cloud mining already has a reputation of a risky endeavor: While contracts are usually long-term and initial payments fixed, fluctuations of crypto prices render such investments a roulette. Especially with Bitcoin, massive crowds of new miners constantly enter the market, driving the hashrate up. A recent report by CoinJournal highlights the tremendous rate of its growth over the last several months. This is good news for the crypto industry at large, meaning that — despite the relatively unimpressive price dynamics of 2018 — more and more resources are pouring into the network. Yet, for mining enterprises, this primarily signals more competition, spelling death for those who come up short in the arms race.
Against such a backdrop, the lack of trust in service providers might become a deal-breaker. Why engage in an increasingly precarious activity that promises fewer payoffs, especially when you cannot be entirely sure that the platform facilitating your engagement is trustworthy? If HashFlare’s case entrenches in mass consciousness as a poster for cloud mining services, the model is unlikely to survive the ongoing hashrate rush.
submitted by SwitchKanun to hashflareinfo [link] [comments]

Is Cloud Mining More Profitable than Bitcoin Mining Hardware?

Getting started with bitcoin mining can be a difficult process for many. For example, you must consider things like the specific algorithm used by the Proof-of-Work cryptocurrency you want to mine. Additionally, bitcoin mining hardware can cost thousands or even tens of thousands of dollars. With all of these challenges it might be a good idea to look at alternative ways to gain cryptocurrency profits, but is cloud mining a legit, more profitable option in the long-run? In this article, we’ll compare these two possible options so you can make a more informed decision.
Costs of Bitcoin Mining Hardware
As discussed in this post, bitcoin mining hardware generally requires a substantial upfront financial commitment on the part of miners. First, it’s important to consider how much mining rigs cost. This not only depends on the cryptocurrency which you are aiming to mine but also how expansive and powerful your mining operation needs to be.
First, let’s consider hardware costs. If you want to mine BTC, for example, you’ll most likely need an ASIC mining rig. These are typically much more expensive compared to GPU and CPU mining rigs. Despite their potential to mine at much faster hash rates, ASIC mining rigs often face scrutiny for the fact that they cannot be repurposed. This means that, if a cryptocurrency project makes changes to their hash algorithms, ASIC miners will have to buy new gear. This can lead to some significant costs that can easily negate revenues and even lead to net investment losses.
In contrast, GPU and CPU mining gear can generally be repurposed if algorithm changes occur. In addition, these rigs are usually much less than their ASIC counterparts. Additionally, more projects are continuing to trend towards ASIC-resistance rather than ASIC-acceptance. For most miners, this means an overall reduction in both upfront and ongoing costs.
While having one mining rig might be a good first step to see if you can indeed become profitable, many people start out with more rigs to have a multiplier effect. However, even with rising prices, starting with multiple rigs should be done cautiously as each additional rig will likely add to the number of months it takes to make back your initial investment.
Of course, other factors like electric bill costs have to be considered. These vary by geographic area, making it difficult to put a precise amount on how much money is needed for keeping hardware rigs operations.
Costs of IT Cloud Mining
In comparison to hardware mining, costs for IT cloud mining are much simpler to calculate. Most companies run on a monthly subscription model that is determined by the cryptocurrency you want to mine and the hash rate speeds as seen on popular sites like Genesis Mining and HashFlare.
Prices for 2-year contracts of ETH mining with Genesis Mining currently vary from $1,520 at 40 MH/s to $12,960 at 360 MH/s.
HashFlare offers 1-year contracts of ETH mining for $1.80 per 100 KH/s.
Make sure to read reviews and check out projected ROI on any cloud mining service. The fact is that there are many services with extremely low profitability and even some which are known scams. Luckily, there are a few guides available on the best ways to identify potential cloud mining scams.
Hardware Mining ROI
Even though there is no way to say for certain how long it will take to break even on investments in hardware mining equipment or cloud mining, it’s still crucial to do research on estimated time frames. According to most miners, it’s difficult to expect to become profitable within 3 to 6 months. 10-15 months is realistic for many, though. A lot depends on crypto prices, electric costs, and the type of mining rig you use. Nicehash provides a good calculator for determining this.
IT Cloud Mining ROI
Based on information from Reddit forums, reviews, and ROI calculators, it is clear to see that cloud mining isn’t all that popular or profitable. For example, as of May 30, 2018, HashFlare Scrypt and SHA-256 currently take 3,828 and 3,983 days (or a little over 10 years) to reach ROI on BTC respectively according to this calculator from Coinstaker. Genesis Mining for ETH has an even worse ROI, taking around 25,992 days (70+ years). In both cases, it’s difficult to justify cloud mining over hardware mining.
The problem with keeping a subscription for cloud mining is that it can be difficult to keep paying monthly even in bear markets. These stats could certainly improve if we see a massive bull run as seen in December 2017; however, it can be pretty difficult to predict when a bull market will begin and end.
Compare this to using bitcoin mining hardware, and the choice is a bit more obvious. That’s because, even if the market is bear, most costs are upfront and not recurring. Sure, there are costs like electric bills to consider with hardware mining, but there are several locations throughout the world where energy consumption is very cheap and hardware mining is legal, making it a clearly more profitable option than cloud mining even in bear markets.
Conclusion
Despite the high upfront costs, the consensus is that bitcoin mining hardware remains much more profitable than cloud mining. Possibly the biggest benefit of cloud mining is its overall ease-of-use since it requires no difficult hardware installation and avoids potentially unpredictable electric costs. However, most in the cryptocurrency community would agree that if you can’t start a hardware mining operation, it’s probably best to make profits through trading rather than going the cloud mining route.
submitted by SwitchKanun to hashflareinfo [link] [comments]

Bitcoin Mining 2019 - Should We Mine Bitcoin? - YouTube Is Bitcoin Mining Profitable RIGHT NOW In Early 2020 ... Bitcoin and Litecoin Mining Rigs. See the differences Litecoin Mining - Comparing Hardware from Bitmain and Innosilicon Comparison of GPU VS ASIC Mining

Ethereum vs. Bitcoin Mining: Profitability Comparison It is difficult to compose a legitimate Ethereum vs. Bitcoin mining profitability comparison because there are so many factors to consider. Both cryptocurrencies will require a substantial investment to start up a mining operation. A Bitcoin vs. Monero mining comparison shows that using a similar hashing power while mining on both blockchains, a user mining on the Bitcoin network will yield less than $10 per day (all numbers based on 100 KH per second mining power). That means it’s roughly 80% more profitable to mine Monero as opposed to Bitcoin, criminal activity or not. 1. Get a Bitcoin mining rig. If you want to start mining in the first place, you have to own a mining rig. Although in the beginning of the Bitcoin history, miners used ordinary domestic computers, and later graphic cards, today you will not acquire any Bitcoin with these machines (or more precisely you may gain something, but it will be a really small amount in a very long period of time). An ASIC-based system recently developed by specialist mining rig firm Avalon has a 66,300 Mhash/sec capacity with a 620-watt overhead, equating to 106 Mhash/watt. Read updated ASIC bitcoin miner ... Search, order and filter through all bitcoin mining companies, mining pools, bitcoin mining equipment and ASICs and ethereum cloud mining contracts. Prices are updated every ten minutes so it is easy to find the top miner for your needs. Want to buy mining bitcoin hardware or ethereum mining graphics cards or GPU's? Use our tables and rankings to find the best products - list rigs and ASICS by ...

[index] [27609] [16585] [17839] [3330] [31128] [765] [18139] [20423] [19653] [20547]

Bitcoin Mining 2019 - Should We Mine Bitcoin? - YouTube

How to make a Raspberry Pi Bitcoin Mining Rig - Duration: 9:43. Tinkernut Labs 301,665 views. 9:43. What Is BitCoin Mining? and Should You Mine? - Duration: 6:07. TingaWinga5 182,642 views. WANT FREE STOCK FAST? CLICK LINK And CLICK "SIGN UP NOW"! 💲💲💲 http://join.robinhood.com/jareds7 ALL VIDEOS ARE ONLY REPRESENTATIVE OF MY OPINION. ONLY INVEST... Install Raid for Free IOS: https://clik.cc/lZAiM ANDROID: https://clik.cc/I3nBm Start with💰50K silver and join the Special Launch Tournament for a chance... Bitcoin & Crypto Mining Comparison https://www.genesis-mining.com/a/1669797 Best Cloud Mining Genesis Mining is one of the leading cloudmining companies and ... Quick video on my mining rigs Bitcoin ===== 20x ASICMiner Block Erupters 1x BFL Jalapeno "4.5" GH/s (Actual is 5.9 GH/s) Litecoin ===== 7x 7970s 3x 7950s 5850 5870 6990.

#