HashFlare Abruptly Shuts Down SHA-256 Mining Equipment and Users Scream

DooKey

DooKey

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HashFlare is one of the largest mining companies out there and they have abruptly shutdown all of their SHA-256 (Bitcoin) mining equipment. Needless to say their customers are howling at the moon and some have lost thousands of dollars on contracts they had with HashFlare. You can check out this tweet and see what's going on if you're interested. Here's the announcement from HashFlare. Now I'm not going to say HashFlare was a scam to begin with, but the saying walking and quacking like a duck comes to mind. I don't think this is going to end very well at all.

BTC mining continues being unprofitable, in light of which we would like to inform you that on 18.07.2018 we were forced to start disabling SHA hardware and today, on 20.07.2018, stop the mining service of active SHA-256 contracts in accordance with clause 5.5 of our Terms of Service, which are required to be accepted when creating a purchase and are the basis of concluding the contract.
 
as a fan of crypto as a tech... crypto requiring tons of energy and mining is extremely stupid long term for the success of the tech and for our environment. bitcoin's current method needs to die for the crypto space to evolve.
 
As long as they are discontinuing it according to contract, I don't see what the big deal is?

It's not exactly profitable to mine this second anyway, so "investors" should be ok with discontinuing the mining?
 
tazeat said:
As long as they are discontinuing it according to contract, I don't see what the big deal is?

It's not exactly profitable to mine this second anyway, so "investors" should be ok with discontinuing the mining?
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But people paid for it to be profitable so it has to be 100% profitable forever. That is how that works. No company can lose money, why would anyone invest if they could lose money.
 
upload_2018-7-20_12-30-2.png
 
From my understanding of the service, this is a rent-a-box company where you rent the cloud resource to mine or be part of the "pool".

The alternative to shutting these rigs down was to raise the rates so they could be profitable again. Their utility costs likely went above the value coming back (high difficulty for their equipment).

The lack of forewarning may be a gripe people can have, but I don't think anyone got screwed here unless they're not refunding any prepaid resources.
 
Spidey329 said:
From my understanding of the service, this is a rent-a-box company where you rent the cloud resource to mine or be part of the "pool".

The alternative to shutting these rigs down was to raise the rates so they could be profitable again. Their utility costs likely went above the value coming back (high difficulty for their equipment).

The lack of forewarning may be a gripe people can have, but I don't think anyone got screwed here unless they're not refunding any prepaid resources.
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This, and the fact that anyone investing must of not understood the effect of difficulty, or just being bad at picking what business model would work, same goes for BitConnect, both are obviously scams for the higher than room temp IQ folks.
 
triwolf said:
This, and the fact that anyone investing must of not understood the effect of difficulty, or just being bad at picking what business model would work, same goes for BitConnect, both are obviously scams for the higher than room temp IQ folks.
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I know a few people in mining that don't understand the simple economics of mining. These are smart engineer types, but they can't grasp the business logic of it (no matter how simple I put it).

When I was mining, I had a spreadsheet that tracked return versus the utility cost and the price of coin. If the equation said that it was cheaper to buy the coin outright than it was to mine, I'd shut my mining rigs down.

They could never figure out why, and said "just keep mining." I'd explain, it's cheaper to BUY the coin at certain price/difficulty levels if you're calculating your expenses as buying power. Mining only has a decent ROI if it gives you some form of leverage (e.g. you can mine more coin than it would cost the buy that same coin).

TLDR;
People blindly jump into investments without doing research or simple calculations.
 
Sounds like that contracts in this service were similar to shares of stock and investors were paid a 'dividend' based on profitable cash flow from mining operations. Much like a company with negative cash flow, they had to stop paying out the dividends once the revenue from coins mined became less then cost of mining.

I have no clue what % dividend equiv each contract generated each pay period.

If the company shuts down, how the sale of assets in handled could be entertaining. Glutto could well be correct.
 
does that shutdown mean even more over worked GPU's will be hitting eBay soon?
 
45454asasa said:
This is completely unrelated
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It doesn't really matter. This isn't the place for rational crypto discussion, ever.

The clickbait crypto threads are basically just typing practice for nervous, mass forwarding grandmothers that think if they post enough outdated memes and "Bitcoin is used by the criminal underground!" tripe, that crypto will somehow go away and the world won't have passed them by.

Lots and lots of deep-seated resentment for being too lazy or meek to take risks themselves early on, and now resenting others that did and made fortunes or just paid off a car.
 
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Ah, I see. I was puzzled. I guess we have come to the point cloud mining does not work. It has to be more about the cloud mining as prices in BC have risen a bit lately. In Winnipeg in Canada with prices at around 3c a Kw there is a thriving community.
 
DPI said:
It doesn't really matter. This isn't the place for rational crypto discussion, ever.

The clickbait crypto threads are basically just typing practice for nervous, mass forwarding grandmothers that think if they post enough outdated memes and "Bitcoin is used by the criminal underground!" tripe, that crypto will somehow go away and the world won't have passed them by.

Lots and lots of deep-seated resentment for being too lazy or frightened to take risks themselves early on, and now resenting others that did and made fortunes.
Click to expand...


gee i can't see why people think crypto is a huge scam.

MW-GJ818_crypto_20180524101202_NS.jpg


just a hunch is all.
 
DPI said:
It doesn't really matter. This isn't the place for rational crypto discussion, ever.

The clickbait crypto threads are basically just typing practice for nervous, mass forwarding grandmothers that think if they post enough outdated memes and "Bitcoin is used by the criminal underground!" tripe, that crypto will somehow go away and the world won't have passed them by.

Lots and lots of deep-seated resentment for being too lazy or meek to take risks themselves early on, and now resenting others that did and made fortunes.
Click to expand...


ROASTED

Have mercy on the low-t betas!
 
I have no idea about whatever HashFlare is, nor do I understand users with contracts losing thousands. (Or was thousands of losers using?)

My only question: does this finally mean that I can buy a new gpu for a sane price?
 
I only lost $200 to hasflare as experiment money, i can afford to lose that.. but its gotta be awful for the ones that have spent 500-10k+
once again, another "dont invest anymore than youre willing to lose"

would be nice if they refunded everyone, but thats not going to happen.
fucked up part is that theyve been mining this whole time for a month or two now, not paying out.. so wheres this mined bitcoin going to?? noone seems to ask that question.. its going into their pockets. or they have no mining equipment to begin with.

we all got scammed, plain and simple.. we saw it coming, made jokes about it, and it happened. no surprise.
 
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