The Current Situation With Cloud Mining Services

19 Dec
2014

cloud-mining-services

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.

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.

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.

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 still rely mostly on their GPUs farms.

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.

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.

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 that it is more like a large crypto currency exchange with some cloud mining options available to make something extra when trading with hashrate and not only crypto coins.



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6 Responses to The Current Situation With Cloud Mining Services

Samy Liberman

December 19th, 2014 at 16:05

Another scam ?

Just got today:

From: no-reply@zeushash.com

Dear Customer,

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 101 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.

Best Regards,
ZeusHash CS Team

Jack

December 20th, 2014 at 08:46

What happened to Gaw shitlets? Oh yeah, they never existed and customers are now just pawns in a ponzi scheme for ponzi coin…gawsome

Lexxus

December 20th, 2014 at 12:25

GAW introducing their controlled crypto going away from the essence of crypto world – no centralization, no one control. They making some “bank” or “government” and be owners of coin, who could be interested?

James

December 21st, 2014 at 19:01

People should at least make a basic due diliginence before investing in cloud mining. I recommend the following discussion:

https://bitcointalk.org/index.php?topic=878387.msg9697654

Bitcoin Cloud Services, PBMining and Hashie raise all sort of red lights. I would not invest one cent. And in Gaw neither ;) So the top four in your list are an absolute no go!

I wish media and blogs would pay more attention to the credibility of services. If there is no strong evidence that the provider is legit it should be ignored. Thanks to Puppet for the list, which saved me a lot of money and trouble.

admin

December 21st, 2014 at 19:46

This is not a top list, the services mentioned above are not listed by preference or any specific order actually. We are just sharing the current development with services that we are using, testing or have used/tested in the past.

Jamie

December 23rd, 2014 at 17:08

Well I’m lucky to have been an early adopter at PBmining and that I got a bit of profit out of it.
but their services “closed” now, I’m not very hot to get into any other form of cloud mining no more.
I’ll just buy bitcoins when it gown low and leave it in my wallet at least money is in my pocket not someone else’s..

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