Hashflare ends all Bitcoin mining contracts for not being "profitable"

Hashflare is one of the largest mining companies in the cryptocurrency market, however, Bitcoin's volatility levels and the shortage of mining malware that generate high costs in this equipment have gradually changed the way

Earlier, we saw that Hashflare revealed through a statement that the SHA-256 mining contracts would be subject to changes in terms and rates as of September 1st. Specifically, the SHA-256 10 GH / z contracts would cost US $ 2.40, while Scrypt's contracts to operate Litecoin (LTC) and receive payments in bitcoins would cost US $ 11.50 for each MH / z .

Now, in a desperate move that threatens the entire community of users of the cloud's operating platform, Hashflare told his users that he has terminated all the contracts of the day. Bitcoin mining assets because they are no longer "profitable".

The information was known by an email sent to users, where the company explains its "difficult" situation in recent months due to the volatility of the market. In this regard, explains Hashflare:

For over a month, our users have been faced with a situation where payments were lower than maintenance costs, resulting in zero charges in the balance.

] In fact, the company reports that since July 18, 28 consecutive days have been completed, with payments being lower than maintenance costs. The consistent thing is to think that Hashflare could reduce energy and maintenance costs to solve the problem, but they claim that they have made it impossible and have not overcome the fact that Bitcoin mining is still profitable.

For those who know the subject Hashflare's decision is not too surprising, given that the company has raised the limit of small withdrawals to 0.05 BTC and 0.1 ETH, which surely drives to the rapid increase of bitcoin hashrate as the main motivator.

Since this hashrate has almost tripled since January, the price of Bitcoin has not increased much, which speaks volumes about the profitability problems of Hashflare's business model. For now, if Bitcoin continues to grow as John McAfee speculates, Bitcoin extraction will continue to be an attractive alternative for many users, and other platforms will benefit.