Cloud Mining with Hashflare: Good, Bad, and Ugly – Daily Cryptocurrency

Te the 2nd part of my investigation into cloud mining services, I voorkant hashflare.io, a service suggested by a somewhat mysterious Estonian company called HashCoins. (Read part one about Genesis Mining.)

Hashflare is a bit of an odd ball te the cloud mining world. At very first glance, their service can seem very attractive and competitive to other cloud mining offerings. Some of their prices are lower, and they suggest Scrypt mining on an open ended poot.

However, things are not fairly so elementary spil that. Before wij get into the specifics of how the service works and how much it costs, wij need to dig a little into the history and structure of the company.

Hashflare itself comes off spil a very secretive organization. They belong to a group called HashCoins, which itself is also cloaked ter mystery. They seem to have ties to Russia, with hashflare.io often attempting to connect to several .ru domains including yandex.ru (which emerges to be a search provider) but say their office address is ter Estonia.

They make no mention of where their server farms are and have not made available any photos or movies of their mining operations. Wij also do not know what hardware they are using to mine or what the size of their operation is.

According to the HashCoins official webstek, they are a provider of “block chain solutions” but don’t suggest much te terms of specifics. They have a section on their pagina dedicated to hardware, but it is exceptionally vague and refers to devices that don’t yet exist but were planned for release ter Q1 2018 – already ter the past. When I attempt to search for HashCoins hardware, all I can find is references to reviews from 2014 and 2015 about devices that are no longer being made or commonly sold.

HashCoins.com claims that the fresh device they are making is based on a 16nm manufacturing process, but there is no reference to this anywhere else on the entire internet. The fact that they don’t update their webstek to reflect the fact that this hardware wasgoed either canceled or delayed is odd.

They also don’t seem to have produced any mining hardware since 2015. This would imply to mij that they are not using their own hardware, but te truth, there is no way to know. If they are selling hardware, they are certainly not being clear about it.

So how well does the service itself work?

I invested a petite amount into Hashflare, about $100 or so worth of Bitcoin to see if it would be worthwhile to invest further into the verhoging. Bitcoin is the only crypto currency they accept, compared to Genesis Mining which will accept a few altcoins like Litecoin.

At the time of my signup, Genesis Mining wasgoed out of stock (and spil of this writing, is still out of stock) of any Scrypt hash power, but Hashflare seemed to still be suggesting it. I signed up for a modest Five MH/s spil a way to dip my toe ter the waters.

I’ve bot keeping track of the payouts that have bot coming te each day te an attempt to see what the payout is vanaf month vanaf megahash. Te the beginning, my results were spil goes after:

Price paid: $13.50 vanaf MH/s, open ended contract with daily maintenance toverfee

  • Day 1: $Two.29 vanaf MHs vanaf month
  • Day Two: $Two.41 vanaf MHs vanaf month
  • Day Trio: $1.68 vanaf MHs vanaf month (Hashpower enlargened to 8 MHs)
  • Day Four: $1.73 vanaf MHs vanaf month
  • Day Five: $1.64 vanaf MHs vanaf month
  • Day 6: $1.58 vanaf MHs vanaf month
  • Day 7: $1.27 vanaf MHs vanaf month

I found this exceptionally odd that the very same day I upped my hash power, my earnings vanaf hash dropped considerably and never recovered. I admit that this is hardly conclusive, but it’s still disappointing, to say the least.

This downward trend has continued to this day, with each day earning a little less and a little less with no signs of everzwijn moving upward again. At this rate, it would take one year just to reach my ROI or terugwedstrijd on investment.

Specifically, I would calculate my potential ROI like this:

Cost: $13.50 x 8 = $108

$1.28 vanaf MH/s profit * 8 MH/s = $Ten.24 vanaf month income (assuming vapid BTC price)

$Ten.24 * 12 months = $122.88

Total terugwedstrijd = $122.88 – $108 invested = $14.88 potential profit

End of year Two, assuming no switches at all ter payout = ($122.88 * Two years) – $108 invested = $137.76 potential profit

However, the above calculation assumes that I would proceed to receive the day 7 payout for an entire year. My last payout wasgoed already below where it wasgoed then. If it keeps pulling down at this rate, I will never klapper my ROI.

Te fact, I would likely kasstuk zero income te less than 12 months. The only way I would kasstuk my ROI is if the value of Bitcoin increases enough to voorkant the shortfall. It’s possible, but it would have made more sense just to buy the Bitcoin outright.

I would also like to note that the payouts, despite it being a Scrypt contract, are all ter Bitcoin only and cannot be paid out te any other way. The prices I calculated are done vanaf day, based on the average price of Bitcoin for the day te question.

On the final day of this example, day 7, Bitcoin wasgoed priced at $2550, and I received a total payout minus fees of 0.00013 BTC. My last payout wasgoed for just 0.0001 BTC, a druppel of 24%.

Hashflare has also bot accused of having some of the highest fees ter the industry.

On day 7 of my proefneming, I wasgoed charged a maintenance toverfee of 0.00003124, or a 23% toverfee. Scrypt mining with competitor HashNest (review coming ter part Three) only charges toughly a 5% toverfee.

While at very first HashFlare’s toverfee may seem lower than on a Genesis open-ended contract, you need to consider the next toverfee that they charge and don’t readily advertise. Te fact, they are so deceptive about this that their about pagina only vaguely says “commission fees” and does not list the amount.

When you want to withdraw your money, Hashflare charges a penalizing, brutal withdrawal commission toverfee of 0.0006 BTC (overheen $Two.Ten at today’s BTC price!), which ter my case is a week’s worth of mining profits.

What this does is compels you to leave your balance on their webpagina for long periods te order to not suffer from this massive withdrawal toverfee. How much of this is network fees and how much of this is their individual profit?

With my enormously modest hash power amount, I can very likely only withdraw once vanaf year or risk cutting massively into my earnings. Hashflare does not permit you to receive your payout te the form of a cryptocurrency with a much lower transaction toverfee like Litecoin or Dogecoin, which could lightly solve this problem.

If you compare their toverfee for sending Bitcoin to that of localbitcoin.com, which spil of today wasgoed 0.0001 BTC, you can see that this is among the highest fees one would expect to pay. The only way to avoid this is to not sign up for any contract that is paid te Bitcoin, which includes Scrypt.

If you compare this to Genesis, the amount they cite spil your payout is the amount you will receive.

Overall I have very mixed feelings about Hashflare.

Some things they do much better than Genesis, other things… it’s too difficult to tell. I would be hesitant to recommend the service or tell people to avoid it.

Te the end, you need to do spil much research spil you can on the costs and fees before you make a decision to sign up for any one provider.

I also very recommend that if you are interested ter joining up, you do a petite test run of $100 or less and then calculate how long it would take to achieve your ROI.

Related movie: FOXBIT – COMO COMPRAR E VENDER SEUS BITCOINS – TUTORIAL COMPLETO


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