Hashflare Review: Gold Mine or Mining Scam?
In today’s review, we are going to look at Hashflare’s cloud mining service and ask two important questions: Is Hashflare Legit, and is it profitable? Not only are these the two most interesting questions we can ask at this point in time, but they’re also the ones that can give us a better look into the ins and outs of this company in an era when scams abound, especially in technology sectors where people may have little prior knowledge of the subject matter.
Cloud mining is a method of mining for Bitcoin and altcoin from a distance. In conventional mining, you would need to buy, store, and maintain (including cooling! $$$) mining equipment which can be very costly. Cloud mining differs because you rent a miner located at a mining farm, and the profits are split by all ‘tenants’. There is a wave of suspecting and untrusting miners due to the sheer volume of mining companies that are actually scams. So, let us shine a light, grab a microscope, and run a toothcomb through one of the most used cloud mining companies to date.
A Short History About Hashflare
Hashflare was founded in 2014 by Estonian university graduates Ivan Turygin and Sergei Potapenko, and started operating their cloud mining services a year later with a UK registration. Their miners are manufactured in partnership with HashCoins who develop technology with blockchain solutions. This means they do boast some impressive mining equipment which is all kept in state-of-the-art facilities to prevent them from becoming damaged or overheating. Their miners are capable of mining for Bitcoin and a range of altcoins, including the also popular litecoin.
When customers register to be part of the Hashflare mining community, they must make an account with a username and password and provide some extra details such as their country of residence and date of birth. These extra bits of information will be used in case you forget your username or password or if Hashflare believes your account may have been compromised.
Hashflare offers a selection of contract lengths from day contracts probably designed to attract new customers and keep them there, up to lifetime contracts depending on some specifics. There are no limits for the duration somebody may wish to renew their contracts for. After making a payment, the mining results will appear on the customer’s account instantaneously and the first payment will occur 24 hours post the first block mined.
Users are free to choose whichever mining pool they wish to join. The digital currency then mined is shared among all Hashflare clients depending on the share they bought in that mining pool. Hashflare offers a nice range of withdrawal methods including Bitcoin, transfers, and by crediting credit cards.
Hashflare have been known to offer promotions where referring a client means you will receive a 10% commission on their Hashflare purchases. Although these sort of promotions can cause ingenuine positive reviews, so watch out for these ones!
Does Hashflare Pay?
By looking at some of the maths, and many other Hashflare reviews, it appears that nobody is really making much money from cloud mining at Hashflare – or anywhere really, even Genesis Mining with the most miners on one platform worldwide, is not really making anybody rich.
One hot topic needs to be addressed that keeps popping up and luring potential miners to the table. There seems to be a belief that if you start mining now you could make more money in the future if Bitcoin’s value goes up (We need to focus on Bitcoin as deposits to Hashflare are made in USD but payouts are received in Bitcoin). This is not the case because with any increase in Bitcoin value, a surge of people attempting to mine for it occurs. It is not a difficult concept; people want things that are worthy and the more people want it the harder it is to get. Hypothetically, if you were mining for extremely valuable Bitcoin you would get a lot less of it and your return would likely be the same as previous mining returns – nil pwa. Unfortunately for miners, the difficulty of mining Bitcoin also increases when its value decreases; it really is a lose-lose situation for all cloud mining, not just Hashflare.
I’m already committed…What should I do?
You might be reading this Hashflare review already committed to a contract and wondering what you should do next. Firstly, we have not said that Hashflare is going to leave you completely out of pocket so you could break even or even make a small amount of money; it is possible. One technique you could switch to is to hodl. To hodl means to just use the money you set aside to buy Bitcoin instead. If Bitcoin’s value increases you can make money, but if Bitcoin decreases you have still have Bitcoins that may turn to your advantage again in a couple of months. The biggest advantage of this in comparison to mining is that your Bitcoins are yours and do not expire like a mining contract.
Hashflare Review: Conclusion
The opening sentence of this review posed two questions which we will now answer after having a good look at Hashflare’s services.
Is Hashflare legitimate?
Yes, it does appear that Hashflare is a legitimate company that is not going to disappear with all your money in the middle of the night. The company’s founders are well known, run other successful businesses and their team is in the media spotlight often.
Is Hashflare profitable?
Hashflare, alike every other cloud mining service in the cryptocurrency world to date, is not a good investment. Even when considering possible outcomes such as a burst in Bitcoin’s value, we do not recommend cloud mining as a good investment opportunity for the aforementioned reasons. If companies like Hashflare do not advertise massive gains then we can not define them as a scam, but they tread the fine line with good marketing. We strongly recommend that your money would be better invested staying in your wallet or in strategically buying cryptocurrency instead.