HashFlare Dirty Secrets of Bitcoin Cloud Mining

Please don't invest in Cloud Mining before you learn the dirty secret behind all cloud mining businesses. Direct investing is not as profitable as you may be lead to believe.

I would like to share some critical perspective on HashFlare. My recent cloud mining direct investment opened my eyes to a "little dirty secret" about investing into HashFlare and all cloud mining companies in general.


3 most popular cloud mining companies:

HashFlare Cloud Mining website https://goo.gl/rbCofS
1 year contracts.

Genesis Mining website https://goo.gl/2v1XDs
2 years contracts.

CryptoMiningFarm website https://goo.gl/FGq6hn
50.00 GHS welcome bonus, 3 & 6 months, 1/3/15 years & Lifetime contracts available.


Other cloud mining options (limited info, please conduct DD before investing):

CCGmining https://goo.gl/vTkQwY

WorldMining https://goo.gl/g2vRzS

NuVoo Mining https://goo.gl/xg4HLP

AlienCloud https://goo.gl/Yng6fx

Eobot https://goo.gl/YDjs8W

SeeBit https://goo.gl/DpKLGd

FairMining https://goo.gl/f86AW1
I do not understand this website. Looks like an overnight fly-by scam.


HashFlare's recent price action of algorithm SHA-256 was puzzling to many, and could prove to be problematic in the future for the company. What the whole debacle did for me however, was forced me to take a harder look at my last cloud mining investment.

Two months ago SHA-256 was offered for $1.20 per 10 Gh/s. Then it was increased to $2.20 per 10 Gh/s. Then lowered to $1.80 and then just recently back to $1.20 again.

That was roughly 80% in price action. With "Skrypt" price steadily dropping, SHA-256 price was all over the place, delivering confusion and no confidence to investors.

Drastic price fluctuations in such relatively short period of time do not promote confidence in the company"s ability to assess the price level correctly. That will worry future investors. It does worry me.

There is also an issue of bloated maintenance fees that drastically reduce revenue forecast for direct investors. HashFlare should care more about making direct investors happy rather than making sure promoters are happy, IMO.

Overcompensating for referrals is also an issue in my opinion. Referral bonus has to come from somewhere, and I don't believe HashFlare would be the party taking the cut here.

Referral bonuses are most likely paid out from investors revenues, IMO.

The dirty secret of HashFlare (and other cloud mining companies) is that at the current Bitcoin price level it is more profitable to refer new investors, than to invest directly into hashing power. I am not sure it is a winning long run strategy for HashFlare and other similar businesses.


Disclaimer:

ALL IN MY OPINION.

I personally do not think HashFlare is a scam. I believe HashFlare offers a legitimate and most affordable entry into cloud mining at this point.

This however is my own opinion and should not be treated as an expert opinion. I am not a financial adviser and my personal opinion should not be taken as a financial advice.

Please share your opinions and your experiences. Thumb up highly appreciated :)

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I am new to cloud investing and still researching the topic. Please invest carefully and do your due diligence before investing any of your money.

Please share if you had any experiences with above mentioned cloud mining companies. Good and bad (especially bad).

... but also please, don't call any company a scam just because Bitcoin dropped in price and your investment is not profitable. I share your pain. I hope all crypto recover and April bounce is just a beginning :)


Best of luck mining everyone!