All About BItcoin and Litecoin mining and other alternative crypto currencies
We just got a not so pleasant surprise from ZeusHash in the form of a notifications that they may start terminating customers’ Scrypt cloud mining contracts. With “lifetime” cloud mining contracts offered by services such as ZeusHash the duration of the contract is until the coins you mine result in more than what you have to pay for the daily maintenance fee. If the mined coins end up being less than what you need to pay for maintenance for a period of time, 10 consecutive days for ZeusHash, then your Scrypt cloud mining hashrate contract will be terminated. We were just notified that there was one such day and if we get 9 more days like that our Scrypt cloud mining contract will be terminated as it would have reached its “lifetime” term. Below you can see a quote of the notification that we and apparently every other ZeusHash customer with Scrypt cloud mining hashrate probably has received today.
This is an important notice for your MHS contracts.
Due to the surging of Litecoin minining difficulty, the daily payout of MHS fails to cover the maintenance fee today. According to the term of MHS contract, “the payout allocation will be terminated in case the daily mining return is lower than the maintenance fee for 10 days in a row”.
We are sorry to inform you when this continues for 10 consecutive days, we’ll have to terminate your MHS contracts. We didn’t expect this happening so soon but we have no other choice.
For now, GHS will be a better investment and we recommend you to buy GHS instead. And to thank you for your long-term support and faith in us, we’d like to give you a GIFT of 5 GHS so you can continue with your profits in cloud mining. Please check your balance in 24 hours.
Besides, to provide more ROI despite the termination of your MHS contract, we are offering you the LOWEST PRICE TIER @ $0.419 per GHS for your FIRST ORDER between Dec. 20th and Dec. 21st(UTC+8). More promotions are on the way for Christmas as well. Stay tuned for the good news soon.
In the meanwhile, we’ll strengthen our efforts to find you better contracts–MHS with lower costs for a better ROI and cloud mining investment.
ZeusHash CS Team
Low crypto currency exchange rates, difficulty for Bitcoin and Litecoin going down, more Scrypt ASICs getting cancelled… in a situation like this how can you actually make profit mining, especially if using a cloud mining service? Well, the good news is that most of the cloud mining services are still up and running with ROI times just getting even longer than before, so it is hard to talk about actually getting a profit at the moment. At the same time however some services that promised long term contracts with maintenance fees included in the price are struggling to survive – bad planning expecting the price of BTC to skyrocket short term or well planned long-terms scams, it is hard to tell. The fact is that at the moment it may not be the wisest idea to invest in cloud mining hashrate, especially if you are not going to be paying for the hashrate with cash, but with coins that you have already mined or purchased at higher price.
– PBmining has been having some trouble for the last few weeks with claiming to be a result of blackmail and operators personal data about the service operators leaking. As a result the service is apparently a “failing business” in their own words and “recovery is trying to be made”, no more hashrate is being sold and weekly payments are at just about 5% or less of what they should normally be. If you were among the early users fo the service you might have made some profit, but for people that joined PBmining in the last weeks it could be a serious loss. It is not clear if all was due to bad business planning or if it was a scam, note that the website is still online and there are still some payments being made, but that could also change at any time.
– GAW Miners is a company that started selling ASIC miners, then moved into cloud mining and are now moving to the next step – introducing their own crypto coin and building an whole ecosystem around it. They are essentially moving away from cloud mining services and moving to another business that they see as a better and more profitable alternative, we are yet to see how things will develop on the long term.
– Bitcoin Cloud Services is probably the closest competitor with very similar terms to PBMining and prices for the hashrate. There were some concerns about the service when it launched, but it is still here a few months later, paying daily and offering attractive terms. Though since the business model could also be the same as PBMining if you have concerns you might want to go for other alternatives as well.
– Hashie is a relatively new service, but since they have partnered with the AMHash mining farm and started reselling their hashrate they have become a good place to get hashrate from. They were confirmed as an official partner by AMHash, a large mining farm operated by ASIC manufacturers, so their trust level has gone up and the price they have for AMHash hashrate is currently very good compared to other similar services.
– Genesis Mining remains one of the preferred cloud mining services thanks to being more transparent and open on their hardware partners and mining farms and who is actually behind the service, and also by offering some innovative and interesting features to miners. Their prices may not be the best out there, but at least they are here to stay long term.
– Hashnest is service for buying cloud mining and renting actual hardware miners operated by Bitmain, another ASIC manufacturer. The service had some issues in the past, but it stil running and trying to improve. They have announced a market where users can trade hashrate and get a better price per GHS, but even though you might be able to get a good price for the hashrate their maintenance fees have been quite high.
– ZeusHash has transformed from an ASIC manufacturer to cloud mining service provider, but unfortunately since they are not making their own hardware anymore and they do rely on other partners for the mining hardware their terms are far from the best. What they do try to do is to attract users with various incentives, some of which may work well, others not, but in the end people want to make money from their investment in cloud mining and this service may not be the best place for that at the moment.
– Chabat Mining is another new service that has been grown quite a bit lately by offering very attractive Scrypt cloud mining hashrate prices, but with the not so favorable situation for LTC at the moment it is questionable how wise it is to invest in Scrypt cloud mining at the moment. We’ve been having some strange issues with the service’s website, like often not being able to actually see our current mining status, but no issues with payments so far.
– CEX was one of the first large could mining farms, however with their maintenance fees going higher and higher the profitability of the service has gone down significantly. So at the moment you can say thar it is more like a large crypto currency exchange with some cloud mining options available to make somethign extra when trading with hashrate and not noly crypto coins.
– Scrypt.cc is one of the first Scrypt cloud mining services from back when Litecoin was still profitable to mine with GPUs. We’ve had some issues with the service when we started to use it, then later on they were apparently resolved, but their services are not among the most attractive as they stil rely mostly on their GPUs farms. We got some reports from users that the service is no longer available or paying, but we’ve checked both and even today it still works apparently.
With the current situation on the crypto currency markets and especially the low exchange rate of the Litecoin it is no wonder that we are seeing another ASIC manufacturer cancelling their plans to release a new Scrypt ASIC Miner. The problem with these kinds of actions is that manufacturers are loosing users trust, even though they may try to compensate their customers in some way. Back when BitMain announced the pre-order for the L1, something new for them back then, we weren’t that happy and now we are also not very happy with the fact that BitMain waited up until now to announce they are cancelling the L1 when they were supposed to actually start shipping the finished product. Below you can find quoted the official announcement from BitMain about the discontinuation of Antminer L1 along with what options they offer to customers who have pre-ordered the miner:
Dear loyal customers,
The decision has been taken not to continue production of the Antminer L1
In response, all customers will be able to choose one of three options:
1) The original order value of $599 will be refunded at 105% value [$629] by bitcoin at current market rates. Customers will receive bitcoin payment.
2) The original order value of $599 will be refunded at 110% value [$659] by bitcoin at current market rates. This will be credited against any new S3/S4/C1 order placed in the web store.
3) The original order value of $599 will be credited at 115% value [$689] against an S5 order placed in the web store. This will be issued in the form of a 15 day coupon, each coupon valued [$344.5].
Please await an email firstname.lastname@example.org for further instructions.
Though we are sorry that we do not deliver this time, it still turns out that buying L1 from BITMAIN is a very best way to earn more Litecoin.
Data Analysis: In the beginning of L1 sales, you only need to pay 115.86LTC to buy one L1 per the LTC/USD exchange rate 5.17 in the early September. However, you will get 193.22LTC under current LTC/USD exchange rate 3.1. And then plus extra 5% value, a total amount you get is 202.88LTC per unit. Return on investment is 75%. If you choose coupon compensation, Return on investment is 91%.
It is not very clear weather BitMain has already finished with the development and has actually produced some mining hardware or they are cancelling things before they have actually been finalized. The problem is that after ZeusMiner cancelled their Volcano miner and 3rd generation Scrypt ASICs and now the same happening with BitMain and their AntMiner L1 Scrypt ASIC things do not look that good for Litecoin and other Scrypt crypto currencies. The low exchange rate of LTC at the moment makes older Scrypt ASIC miners not very profitable to run due to their high power usage and with no newer generation more efficient miners announced to be coming soon things could get even worse.