If you’re familiar with the cloud mining industry, then you must’ve heard the name Hashflare.
Hashflare is another cloud mining giant who had the market in its’ hands several years ago, but today they seemed to have stopped selling contracts and caused the commotions around the press.
In this review, we want to deliver accurate information about the company and give you a taste of what it was like to mine with Hashflare.
What we will cover in this guide:
- Introducing HashFlare
- Hashflare review, pros and cons
- Why HashFlare?
- Is Bitcoin Mining at HashFlare Profitable?
- HashFlare Public Review and Final Thoughts
Of the many cloud mining providers, HashFlare stands out, especially by being on pause. The company was second-best (after Genesis Mining) in the cloud mining industry, that’s how much they stood up.
HashFlare, launched in 2015 with a UK registration, is a cloud mining company and a division of HashCoins.
HashFlare supply cryptocurrency mining contracts of leading Proof-of-Work blockchain networks like Bitcoin, Litecoin, Dash and Ethereum. Although it controversially shut down operations in mid-2018-and removed their “About Us” page from their homepage, HashFlare offers cryptocurrency mining on “modern high-efficiency equipment.”
HashCoins was established in 2004 and is registered in Estonia. They manufacture innovative and efficient mining software and hardware for clients.
Why did users go to HashFlare?
Distinct from other cloud mining vendors, HashFlare, through HashCoins, are manufacturers of ASIC mining gear. This insider knowledge of how mining gear can be fine-tuned for extra income differentiate them from competitors.
Like other settlement models, rewards-and therefore, earnings, is shared proportionally depending on the allotted hash power. The more hash rented, the higher the expected profits for the cloud miner.
Nonetheless, while this seems profitable-given the advantages, it is hard to predict precise rewards due to continuous development in the blockchain spectrum, volatile cryptocurrency prices, mushrooming mining pools and fluctuating mining difficulty.
When a client connects with HashFlare, this is what he/she gets:
- Instant connection and withdrawal: Mining starts immediately upon payment confirmation. The first payment can be processed after 24 hours.
- Access to detailed statistics where mining information is relayed in real-time to clients anywhere in the world
- The customer has the option of selecting mining pool through which the rented hash rate can mine coins
- There is transparency with no hidden fees or commissions.
HashFlare offers five mining contracts. However, at the time of writing, all mining contracts are out of stock.
Once available, clients can purchase the following contracts:
- Bitcoin Cloud miners
Being the most valuable coin, the demand for Bitcoin mining is always high. Transaction blocks on Bitcoin’s proof-of-work consensus algorithm is mined using the SHA256 ASIC miners. Every 10GH/s of hash rate is available at $0.60 in a one year contract. The minimum hash rate one can purchase is 10GH/s and it attracts a maintenance fee of $0.0035 every day for the duration of the contract. Payout is automated and settled in BTC.
- Litecoin Cloud miners
Based on Scrypt, a special mining algorithm for mining Litecoin and other blockchains based on the same algorithm, the minimum hash rate one can invest in is 1 MH/s charged at $1.80. For every minimum bundle purchased, a flat maintenance fee of $0.005 is charged every day. Payout is automated and settled in BTC.
- Ethereum Cloud miners
HashFlare uses GPU rigs to mine ETH and different from others, there are no maintenance fees. The minimum hash rate available for purchased is fixed at 100 KH/s charged at $1.40. Payout is automated and settled in ETH.
- ZCash Cloud miners
Based on the Equihash algorithm miner, the minimum hash rate available for clients is 1H/s sold at $1.40 with automated payout that is settled in ZEC. There is no maintenance fee for this package, and GPU rigs are used for mining.
- Dash Cloud miner
The minimum hash rate available for investment is 1H/s charged at $3.20. Mining is through a multifactor gear that attracts zero maintenance fees where payouts are automatically settled in DASH.
All contracts are renewable after a year and getting started is pretty easy.
This is how one can begin cloud mining at HashFlare:
- Select your preferred cryptocurrency-BTC, ETH, ZEC, DASH or LTC
- Sign the contract and pay
- Start earning
Behind the scenes, this is how cloud mining is done:
Upon selecting your preferred cryptocurrency and paying, your rented hash rate will be connected to a mining pool.
Since there are many, HashFlare allows you to select your pool of choice—it is all about profit maximization and therefore this will depend on your due diligence, math and other variables provided that your selection will generate daily or annual profits.
From there, the process is like any other mining pool; all block rewards will be distributed to the members of the mining pool, weighted according to contributed hash rate.
Is Bitcoin Mining at HashFlare Profitable?
Remember, the bottom line is to be profitable. Therefore, it is only natural for a would-be investor to inquire if cloud mining through HashFlare yield profits.
Let’s do some legwork to ascertain whether BTC cloud mining has advantages over traditional Bitcoin mining:
Bitmain Antminer S17 59Th is currently the most efficient SHA-256 miner in the market with a hash rate of roughly 59TH/s as marketed.
- Retailing at $4,085 and factoring other costs like electricity charged at roughly $0.1 KWH
- And mining pool fees of roughly 0.1%
- The average profitability/loss per day at BTC spot rate of $8091 will be: -2,746.42 annually.
For the same hash rate at HashFlare, one will have to shell out: (59/0.01*0.60)=$3,540. Payments are made in USD. However, payouts, as mentioned above, are settled in BTC. BTC prices are not fixed, and fluctuate depending on market factors.
Assuming you were to mine using the same hash rate without factoring in costs, the annual payout will be $3,431.28 at current network difficulty. The amount could be even higher if BTC prices rally to new 2019 highs.
However, for this, maintenance fees will be: (0.0035*5900*365) is $7,537.35 per year.
The difference between the two means one will contend with losing= $(3,540-7,537) =$3,997 per year.
That’s a loss of $333 per month.
As it is, the choice is upon the user. Profitability goes hand-in-hand with mining difficulty, gear cost, and most importantly spot BTC/USD rates.
At prevailing BTC/USD rates, Bitcoin mining contracts at HashFlare would be null since mining, as viewed above, would not be profitable. As per a clause in their terms and conditions of use, HashFlare’s contract is only binding “while profitable, until expired or until terminated, whichever comes first.” They also have a right to end access to your account or altogether cancel the contract if there is a judge that there has been a breach of contract.
HashFlare Review and Final Thoughts
Cloud mining companies, not just HashFlare, have a lot of leeway and power. And perhaps that could explain the bad press. While there are supporters, most complain about profitability and their demand for verifying their identity when withdrawing funds.
This decision angered many, and their tactic really was condemned users who even labeled the cloud miner a Ponzi scheme. Discussion around the cloud miner even took a turn for the worst when they decided to suspend BTC mining, citing volatile prices in July 2018 temporarily. It was a surprise for critics because inherently, BTC and other cryptocurrencies are volatile.
This is what they said in their Facebook post:
“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.”
Other discussions revolved around HashFlare’s slow to nonexistence customer support, rampant and unexplained contract cancellation, reward non-payment, and quite amusingly, fake positive reviews. Combined, the main deterrence-where would-be clients would invest their money in cloud mining is the bad press HashFlare has received over the last few months.
On top of that, cloud mining has always been viewed as Ponzi schemes. Therefore, while there are honest providers, investors should do their groundwork before sinking their money and easing themselves from the cost of running cryptocurrency mining rigs.
When addressing the crypto market, it all comes down to your profit and liquidity. Investing in Hashflare was a bad idea even at the beginning of 2018, and it’s currently impossible.
Be wise and cautious about your steps in the crypto market. If you want to mine Bitcoin and altcoins and consider cloud mining, you can check our guide review of Genesis Mining (cloud mining) and Minergate (mining pool).
What cryptocurrencies can I mine with Hashflare?
Currently being out of business, Hashflare can’t give you mining contracts. Although, they still display their contracts on the website.
Here’s the list of cryptocurrencies you could mine on Hashflare:
How to calculate estimated profit?
It’s hard to tell with the fluctuation of Bitcoin price and mining difficulty growing day by day, but there are some calculators that could help you give the approximate views of your profit.
How long will my contract last, and can I renew it?
The contracts on Hashflare would last around a year and they had an option for continuing it once the time was up.
They also had a “reinvest” option, which allowed the user to buy additional hash power once the balance allowed it.
When will Hashflare come back?
The company never announced the come back date.