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.
However, ZeusHash is not suspending their cloud mining services just yet. The company did issue a general warning to their customers that if the daily cloud mining payouts are lower than the maintenance fees for 10 consecutive days, mining hardware will be shut down. All cloud mining contracts will be frozen to avoid further losses.
With the current Bitcoin price dropping below the US$200 mark once again, these 10 consecutive days may be reached sooner rather than later. While the ZeusHash team remains optimistic about the Bitcoin price in the near future, they have a duty to protect their customers from financial losses, and will act accordingly if needed.
In order to minimize customers’ losses when cloud mining contracts would be frozen in time, there are several plans being discussed internally. No official information has been released in regards to these plans, but we will keep our ear to the ground. Rest assured that ZeusHash will do everything in their power to work on a solution.
New Contracts with Lower Maintenance Fees Coming Soon?
ZeusHash is not a company to dwell on the current situation, but rather look ahead in order to provide the best service to their customer base. The team is negotiation news deals with their partners in order to reduce the cloud mining maintenance fees m as well as work out new contracts for the near future.
These new contracts and maintenance prices will be released once everything is finalized, but no official ETA has been provided at this point in time.
Scrypt Cloud MIning Not Affected
Contrary to what other news sites are claiming, ZeusHash is not shutting down their Scrypt cloud mining operations any time soon. Even though Scrypt coins have to be exchanged to Bitcoin in order to “cash them out”, and they are affected by the recent Bitcoin price dip, cloud mining will proceed as planned for the time being.
As is the case with the Bitcoin cloud mining contracts, it all depends on the earnings/maintenance fee ratio for miners. So far, it seems like they are still earning more compared to how much a Scrypt cloud mining contracts costs in maintenance fees. We will be keeping an eye on this situation as it further developers.
Source : http://news.zeushash.com/news/29