HashFlare, a cryptocurrency cloud mining service, has finally stopped its Bitcoin mining service. The decision to terminate the mining services was made known to the public through their Facebook account. The primary reason cited for the decision is the drop in the market of cryptocurrency since the beginning of 2018, which has made the business not so profitable. Hashflare offers cryptocurrency mining services on modern, high- efficiency equipment before the recent decision was made.
Reasons for the Stop to Hashflare Cloud Mining Services
The company, Hashflare has stopped its mining services as was made known to the public through their Facebook account. The post reads as follows “We have made every possible effort to resolve the problem that has arisen – for instance, we have considered a variety of technical solutions, which would have allowed us to lower expenses related to maintenance and electricity. However, due to the general instability of the market, the actions we have taken could not significantly influence the current situation.” The circumstance of the payout higher than the maintenance fee has led to the decision of stopping the mining services, which was made along the clause 5.5 of the term of service of the company.
According to the projection of a Bitcoin analyst last year, Morgan Stanley, he stated that Bitcoin miners would be at a loss when the Bitcoin drops below $8,600, which it has experienced this year. The drop in value might have deemed fit for the necessary reasons for the closure of Bitcoin mining. However many investors have their cash trapped in it.
The company recently introduced know-your-customer (KYC) and anti-money laundering (AML) protocols that restricted the unverified customers to withdraw their fund, and the recent stoppage of the mining of Bitcoin has further led to many having their funds trapped on the platform. Many view it as an attempt by the company to cart away their fund, especially now that Bitcoin is already taking another rise. The company mines other cryptocurrencies as well, including which includes Litecoin, but is yet to announce the closure of the mining services for them.
There is a possibility of the company earning more than 100% profit from the investment of those who just invested in mining hardware at the recent rise of Bitcoin, with no payment to make to customers.
The step to upturn their decision in the eventuality of a rise in the value of Bitcoin is a watch to behold for the investors and the cryptocurrency community.