Bitcoin Global News (BGN)
July 30, 2018 -- ADVFN Crypto NewsWire -- With seemingly widespread
hacks and scams across the Blockchain industry
including the misuse of mining
software and fraudulent activities in cloud
mining, what service can we trust?
At first glance, the prospect of
cloud mining for Crypto may seem tantalizing.
You don’t need specialized hardware
and you don’t need to pay a gigantic electricity bill, even though
you do need to put your trust in the legitimacy of a firm that, for
the most part, you will never be able to verify the existence of,
in person. Hashflare, which has been of the biggest cloud mining
providers that has apparently proved itself as a trusted service
over time, began to shut down all Bitcoin services just
recently.
This is a striking action because
first, according to Coindesk and
Hashflare, it was due to the cost of mining outweighing the
overall average profits over a period of about 21 days. Secondly,
while it is easier to join a cloud mining service, again you cannot
see what is going on inside the company or really, how they
actually physically do their business, at all.
Hashflare can claim that this is
why they shut down their Bitcoin services but it could be something
else entirely. Regardless of what the truth is, the fact remains
that Hashflare was, for quite some time, what some might have
considered to be the key example of how to succeed in cloud mining.
Even with the rampant volatility of the Crypto market since the
start of 2018, leaders like Hashflare had been succeeding, at least
by outward appearances. As of now, since they have failed, the
future of the niche could possibly be more in doubt than it was
before.
What seems to give more credence to
this is that with the price being the essentially the lowest that
has been in the last year, the same report by
CoinJournal indicated that the mining space has continued
to grow.
With Hashflare’s failure also comes
the possibility that users will shy away from cloud mining
platforms not only due to it being hard to see them as legitimate,
but also because if what Hashflare says is true, profits are
sharply falling throughout the space.
The central question then
becomes: how do cloud mining firms and their users effectively
respond to this?
The easy answer is that the
services of these companies need to be altered to promote more
trust. The hardest part about this is, of course, how. As
Coindesk suggests, such companies, including Hashflare, could begin
by trying to differentiate themselves in a new way to address the
rise in competition.
If new features can successfully
show would-be cloud miners that some companies are better than
others, then certain competitors will survive the storm, while
others will not.
By: BGN Editorial Staff
News:
Cloud
Mining
Cryptocurrency
Mining
Cryptocurrencies