In the light of all the recent commotion surrounding Bitcoin and altcoin cloud mining, several companies have either halted operations for the time being, or issues warnings about the current unprofitable state of their services. Genesis Mining, a German-based cloud mining company and one of our major advertisers on this website, has come up with an interesting solution to address the current state of altcoin cloud mining.
Scrypt Cloud Mining Even Less Profitable Than Bitcoin Cloud Mining
Whereas most of the cloud mining focus is on whether or not it is worth to mine Bitcoins, altcoins are suffering from a worse fate. As most of you will be aware, when you mine altcoins through a Scrypt cloud mining contract, you will have to exchange these coins against bitcoin in order to turn them into fiat currency to pay for your real life bills and expenses.
However, as the Bitcoin price started to plummet a few days ago, so did the price of altcoins. And when Bitcoin prices plummet, the price of most altcoins will plummet even more, as people are looking to exit the altcoin scene to limit their losses. with mroe and more people dumping their coins on exchanges, prices go down even further and Scrypt cloud mining becomes less and less profitable.
According to Genesis Mining’s Terms of Service, contracts yielding negative returns for twenty consecutive days will be terminated immediately. It can only be considered proper to include such a clause in the ToS, as you cannot expect a company to continue mining operations at a constant loss for the unforeseeable future.
It is important to note that Genesis Mining has not yet reached the point of negative cloud mining operations, making them one of the only companies in the world to do so right now. After sending out a reminder about their ToS to customers, and asking what they would like to see Genesis Mining do, the GM team came up with an interesting plan to avoid customer losses.
“We, at Genesis Mining believe that for ensuring the stability of any company, it is important to listen to its customers and cater to their needs. Thus for us, keeping our customers happy and content is more important than the contracts.”
Converting Scrypt Mining Contracts Into Bitcoin Mining Contracts
Other companies would have chosen the easy route and turned off all of their Scrypt mining hardware. Genesis Mining on the other hand, will allow customers to transfer their Scrypt cloud mining contracts into SHA cloud mining contracts. This feature has been requested by several customers who saw the Bitcoin price drop coming.
At first, the Genesis Mining team was not too keen on moving forward with the conversion process, as it brings a lot of expenses with it. However, after doing their due diligence, Genesis Mining has found a way to make these transfers possible, by bearing the conversion costs and expenses themselves. Basically, Genesis Mining will take a small financial hit for every conversion,but it will benefit both the customers and the company in the long run.
In regards to how the conversion process will work, 1 MH/s of Scrypt mining power can be converted into 1 GH/s of Bitcoin mining power. Customers have to keep in mind that this conversion is completely optional, and available to anyone who wishes to change their contracts. Transferring from Scrypt to SHA cloud mining power can be done by clicking on the “Transfer Hashpower” button in the user interface menu..
Source : Genesis Mining Newsletter
Website : http://genesis-mining.com (use code DEB1 for a 3% discount at checkout)