It was only a matter of time until the BitLicense regulation started claiming more victims in the Bitcoin mining industry. Not only are individual miners under the scrutiny of becoming money transmitters, but mining pools and even cloud mining providers could be affected as well. Genesis Mining, one of the very few legitimate cloud mining companies, will no longer accept customers from the New York state area.
Bitcoin cloud mining has been in a state of flux over the past six months. For the most part, this situation stems forth from the Bitcoin price that is far below the target to make cloud mining even remotely profitable. That being said, several cloud mining operators decided to remain in business, in the hopes of seeing a price increase in the near future. And for some companies altcoins seemed to be the Holy Grail of cloud mining for now.
One of the recurring topics of the past few months remains Bitcoin cloud mining, and its current struggle to be profitable for customers. Several Bitcoin cloud mining providers have halted their services for the time being, as other companies are working on new partnerships in order to provide their customers with a quality service. Genesis Mining, one of the few European Bitcoin cloud mining companies still in existence, has recently partnered with Spondoolies-Tech, a Bitcoin mining hardware manufacturer.
Butterfly Labs is one of the more infamous name in the world of Bitcoin and digital currency. As Butterfly Labs (BFL) was a Bitcoin ASIC manufacturing company, they managed to become a big name in the mining space back when ASIC’s were only just hitting the market. However, after missing deadline after deadline, and eventually scamming a ton of users out of their pre-order funds, the company faced legal trouble and had to shut down. To this day, pre-order funds is still being returned to customers, albeit in a rather fishy way by the looks of things.
BitFury, one of the world’s biggest brand names when it comes to Bitcoin mining hardware manufacturing, is looking to shake up the current cloud mining ecosystem. Rumours about this “change of direction” have been announced about a week, ago, and now that BitFury has purchased cooling specialist Allied Control, it looks like the company is one step closer to breaking ground in the world of Bitcoin cloud mining.
Bitfury – The Foundation of the Bitcoin Ecosystem
While the Bitcoin price keeps hovering around the US$230 mark over the past few days, Bitcoin cloud mining services are once again facing a serious threat to their profitability plans. As we have seen a few weeks ago, several Bitcoin cloud mining services had to suspend their operations for the time being. By the looks of it, ZenMiner has suspended their cloud mining operations as well.
ZenMiner Disables Cloud Mining
A few days ago, we mentioned that ZeusHash was working on creating a new Bitcoin cloud mining contract for their new and existing customers. Not too many details were known at that point other than the fact that maintenance costs would be reduced drastically. The latest ZeusHash newsletter – which was sent out yesterday – contains all of the relevant information, so let’s take a look!
ZeusHash, one of the few remaining legit Bitcoin cloud mining services, recently announced their new cloud mining contract. In order to stay profitable for miners, the ZeusHash team had to work out a deal with their partners in order to further reduce maintenance costs while the price per BTC is lower than anticipated at this time of year.
New Bitcoin Cloud Mining Contract
Other Bitcoin news sites are claiming that ZeusHash is facing a cloud mining shutdown in the near future. After we reached out to ZeusHash, we learned this is not yet the case, although the company issued a warning in regards to the current unprofitable state of Bitcoin. Let’s report on what is actually going over at ZeusHash.
Current Bitcoin Price is Unprofitable for Cloud Mining
It is no secret that Bitcoin cloud mining at current prices is far from profitable. In fact, most miners are cloud mining at a loss on a nearly daily basis right now. Popular bitcoin cloud mining service CEX.io has already suspended their cloud ;ining operations for the time being, and other companies may have to follow the same route.
Ponzi schemes are still running rampant through the world of Bitcoin and other digital currencies. Despite the massive losses by “investors” when CryptoDouble shut down, people still keep investing their Bitcoin into other ponzi schemes in the hopes of making a profit while the program is relatively new. As a result, we also see new “types” of ponzi schemes appear, such as PonziCloud.
PonziCloud – Bitcoin Cloud Service
Needless to say, ponzi scheme operators are adapting to the current situation involving Bitcoin and cloud mining. With several companies forced to pause their cloud mining operations, as well as several ASIC manufacturers going bankrupt or even disappearing altogether, Bitcoin mining is not in a good state right now.
A major announcement was made yesterday afternoon by CEX.io, as they decided to put all of their Bitcoin cloud mining efforts on hold due to unprofitability. While this change has to do with the current Bitcoin price drops, it looks like cloud mining on CEX.io will not be resuming any time soon. Here is some more information unveiled by the team earlier today on Bitcointalk.
A few days ago, we mentioned how Bitcoin cloud mining is the only way for most people who want to be part of the mining game. With nearly each and every cloud mining provider turning up negative earnings, either immediately or after a very short period, it looks like cloud mining will not be profitable for a long time to come. With the total network hashrate taking a serious dip, will we see multiple mining difficulty decreases coming up?
Bitcoin mining at home is something of the past. I often find myself reminiscing about the fact how I could mine some chunks of a Bitcoin with an Nvidia graphics card back in the days. Ever since the big Bitcoin ASICs hit the market, that situation changed drastically, and in the end, a lot of people had to turn their attention to Bitcoin cloud mining. But is that as profitable as some might think?