HashFlare and other cloud mining platforms have come under a lot of scrutiny recently. After Bitcoin hit peak values in late 2017, more people looked to get their hands on the cryptocurrency, with many turning to cloud mining operations. In this hashflare review, we are going to touch on different topics that hopefully will answer this question on a lot of people minds : Is hashflare worth it ?
After Bitcoin’s value plummeted at the beginning of 2018, it became clear that not all cloud mining platforms such as HashFlare offer a return on investment as expected. Some are outright scammers offer no chance to gain profits from an investment
However, HashFlare is one of the more reputable cloud mining platforms.
It’s definitely not a scam website, but the value of bitcoin has played a significant role in the stigma recently surrounding the platform. Let’s take a closer look at HashFlare and whether it’s worth using:
What is HashFlare ?
HashFlare is a cloud-based cryptocurrency mining platform owned by HashCoin. Founded in 2015, the online platform mines bitcoins and other cryptos that are then paid out to users subscribing to the service.
The aim of such a platform is to allow more notice users to get a taste of cloud mining and how to earn cryptocurrencies doing it.
As mining for cryptocurrencies requires expensive computing hardware and high operating costs, services such as HashFlare provide users with a simpler, more cost-effective way to mine the likes of bitcoin and Ethereum.
How does HashFlare Work ?
HashFlare is a type of cloud mining operation, meaning they use special computer hardware to mine various cryptocurrencies.
This allows HashFlare to collect various cryptos such as Bitcoin, Ethereum, Litecoin and DASH without having to buy them – the cost of the hardware and maintenance fees are the main expenses for mining operations such as these.
Users pay a monthly fee to help cover these costs and are rewarded with Bitcoins and other cryptos. The more you pay towards the service, the larger your share of the profits, which are calculated based on the computing power used to mine the coins.
HashFlare claims to house hundreds of mining hardware in their data centres, all of which are constantly mining cryptocurrencies. The company doesn’t go too in-depth about their mining hardware setup, only claiming to have hundreds of miners that are ‘highly efficient’.
When you sign up for HashFlare, you decide how much you want to pay in monthly fees, with those paying more towards the hashrate (mining speed) getting a higher share of the profits. Essentially, you pay to rent out a portion of the miner with the hope that the hashrate provides a more profitable pay out.
Miners are connected to pools, and users get to choose which ones your hashrate connect to, making it possible to find the better pool combinations for higher profits.
Is HashFlare Worth It ?
One of the biggest questions about cloud minders such as HashFlare is whether they are worth the investment. Many question their practice, as it’s usually cheaper to buy the Bitcoins outright than spending the same or more money trying to mine them.
However, there is a reason behind such practices – buying cryptocurrencies comes with many risks.
Just look at Bitcoin. After reaching an all-time high, Bitcoin saw a drastic drop in value. As a result, anyone paying for Bitcoin saw their value drop, which is bad news for companies with miners, as they won’t be profitable anymore.
Instead, companies such as HashFlare pay the initially costs of mining hardware, then offset the costs by outsourcing the miners power. So, if the costs of miners are covered by other users paying for the service, the risks from crypto value crashes are significantly reduced.
Further costs can also be covered from service fees, such as electricity, helping to reduce risks even more and create profits from crypto mining even if the value drops. It’s a basic example of how cloud miners such as HashFlare remain profitable.
This is also why HashFlare has been getting a seriously bad reputation of late.
The Problem of Using HashFlare
Because Bitcoin and other crypto values saw a steep decline in recent months, the fees for HashFlare are no longer profitable for users. Instead, you can spend less money to buy bitcoins outright as their value is so low.
HashFlare is still making profits, it’s just the users that will struggle to receive higher pay outs, as the costs of mining remain the exact same while the value of Bitcoin decreases. So, if you’re currently looking to get bitcoins on the cheap, services such as HashFlare aren’t worth your time.
HashFlare in the Future
Remember, crypto values are in constant flux, meaning services such as HashFlare will likely become profitable again. Should the bitcoin value reach a new high, HashFlare would be a much cheaper than buying them outright.
So, once the markets pick back up, HashFlare may see less scrutiny and more investments.