ZeusHash May Stop Offering Cloud Mining Services

15 Jan
2015

zeushash-bitcoin-cloud-mining-warning

Earlier this month Zeushash has stopped all Scrypt cloud mining contracts due to the maintenance fees exceeding the mined coins for a long period of time. Today the service has warned its user that the same can happen with their Bitcoin cloud mining contracts as well. This is a direct result from the low Bitcoin price that was observed lately along with the relatively high maintenance fees of the service. As per the contract terms the Bitcoin cloud mining contracts can be stopped if the fees are higher than the profit for a period of 10 days. If this happens, though not seeming that likely today as the Bitcoin price has been recovering a bit, it would essentially mean that the ZeusHash platform will not be offering anything to the tens of thousand customers it claims to have. ZeusHash still sells GHS cloud mining hashrate, though they are warning users not to purchase any hashrate for the moment. If they stop offering Bitcoin cloud mining after they stopped with Scrypt, then this would essentially mean that the service will have nothing to offer to its customers.

At the moment it seems that other cloud mining services may start having trouble with the profitability, so they either need to optimize their operations or there is a chance they may get out of business. Most of the cloud mining services offering “Lifetime” cloud mining contracts do come with a term that if the maintenance fees exceed the profit made from the mined coins these contracts can be terminated. So as a result the user interest in cloud mining services has decreased quite a bit lately, the same goes for the purchase of ASIC mining hardware and even building GPU mining farms. There is however a chance that this not so favorable situation at the moment may actually end up helping the whole crypto currency ecosystem by helping normalize things after the very rapid growth that we have observed in the past year… we’ll have to wait and see.



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1 Response to ZeusHash May Stop Offering Cloud Mining Services

dreddjudge

January 16th, 2015 at 16:45

Witness even LTCGear… cloud mining is dead. Buy coins or put a miner in your basement.

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