Bitcoin, Crypto currency, Blockchain

Genesis Mining: Unprofitable contracts should be terminated

The Cloud-Mining-Service-provider Genesis Mining would like to cancel Mining contracts, which yield no or very little Profit, in a timely manner. As justification, the company announced the descent of the Bitcoin, but it is also an increase in the Mining difficulty. For the customer of Genesis Mining, however, there is still the possibility of a higher doped of the contract.

Genesis Mining is a service provider that offers Cloud Mining Services. The customer Mining can rent capacity provided by computers and the mines of crypto-currencies offer. Many of these Cloud Mining providers maintain so-called Mining farms that have been functioning thanks to the economies of scale much more efficiently than smaller, private miners. The customer is rewarded for his Investment, then a part of the profits generated by the Mining.

Mining is less profitable – The business model starts to falter

What happens, however, if these profits? This experience had to make Genesis Mining in the last few weeks and months. As the company announced in a Blog Post, has become the business for the Miner since the end of last year, harder. This is reflected also in the income of the customers is lower than at the time of the Investment be accepted. This development leads to disappointment and Frustration.

As a Cloud Mining provider Genesis Mining could affect, but not all, of the factors of the Mining Rewards. In addition, Bitcoin price and Mining Difficulty beyond the control of the provider. Only the infrastructure is from Genesis Mining controllable. In this field, you will be issued with the Mining farms in Iceland.

Genesis Mining consequences – Unprofitable contracts are capped

In the other two fields, the market for the Cloud Mining provider, has developed less well. Genesis Mining makes the continued descent of the Bitcoin and the entire crypto-market – in conjunction with the increase in Mining Difficulty in April and may for the meager yield.

Currently, some customers therefore gain less Profit, as you claim the cost of maintenance. Therefore, Genesis Mining has decided to transfer the unprofitable contracts in a 60-day transition period. These ends 60 days, the contracts automatically, even if you were previously unlimited.

With an Upgrade of the termination to be missed

Customers who also want the mines to continue in the Mining farms of Genesis Mining, you can save your current contracts. The Team offers an Upgrade of the Bitcoin Mining contracts on a so-called Radiant contracts. They are running with a fixed term of 5 years instead of the previously applicable indefinite term. In addition, the price per 1 TH/s of 285 US dollars to US $ 180 is reduced. So wearing the market situation and calculated, and henceforth more careful.

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