Is Hashflare A Scam or A Legit Business You Should Invest?
This post will be a long one because I want to rank this article on Google SERP to reach as many readers as possible. I’m going to reveal the dark side of Cloud Mining Business and, more importantly, the dark face of Hashflare.
If you haven’t spent any of your hard-earned money in Hashflare Cloud Mining, I’m going to save you a lot of money today.
I want to share here a real story, the experience of mine with the Hashflare Cloud Mining.
How my Hashflare Cloud Mining Journey Started?
It was back in December 2017, when the cryptocurrencies were the main trend in the newspapers, I have heard about Bitcoin Mining.
At first, I planned to buy some ASIC equipment and build my own mining rig. It’s been talked all over the place like bitcoin mining prints free money. Everyone was fascinated by how lucrative it could be to have a mining rig.
I planned to buy some graphics cards for the Ethereum mining and ASIC equipment for BTC mining. For the following reasons, I’m going to explain, I changed my mind at home to my bitcoin.
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The Reasons I haven’t mined BTC at Home
- I have had a full-time job during that time that left me very little time to care for the mining equipment and solve the technical issues with the mining process.
- The high cost of electricity in mining Bitcoin at home was discouraging.
- I didn’t have sufficient air conditioning at home to cool off the mining equipment.
- Other technical issues I didn’t know how to deal to maintain proper mining process and protect my earnings.
Then I thought maybe mining wasn’t the best thing I could do. I just decided to invest in altcoins and ICO (which later turned out to be fraudulent ventures and Ponzi Schemes).
I was searching online cryptocurrencies so much that every page I visit Google showed me advertisements for different ICO projects or cryptocurrency-related news. Then, I saw Hashflare’s ad. I don’t even know which website I saw it.
Hashflare was offering a service called “Cloud Mining” that I have never heard before. They were promoting it very aggressively on the market. The premise of the Hashflare is renting hash power or “mining power” for a specific period of time.
They have already installed mining equipment, working every day to mine large amounts of BTC. No need to say they had very cheap electricity.
As much I remember the business based on Estonia. But they were mining at different locations. But it really doesn’t matter where they are located don’t quote me on this later.
How Much I have Invested To Hashflare?
This is my Hashflare Dashboard. I’m sorry to remove parts of the photo to protect my sensitive information.
I wanted to try and deposited some of my BTC I owned then. Later, I have also made additional deposits to Hashflare from my credit card.
Finally, I hit around 108 TH /s which is significant. I don’t remember exactly, but my money invested is nearly $10k, which is made in multiple payments at different times. I have also purchased Ethereum mining contracts to diversify my portfolio.
A Business With No Phone Support
People invest $100-$100 K in cloud mining. But let’s say a typical investor’s $5 K deposit to Hashflare. You invest $5 K in something without phone support. Your investment is in an eastern European country which doesn’t really have proper regulation.
There are so many things that can go wrong. Today, $3/month Webhosting companies provide phone support for their customers.
Imagine a business you invest multiple folds than your Webhosting provider but it comes with no phone support. Would it make any sense to you?
Email Support With A Response Time A Month
They’ve got email support though. I remember emailing them a couple of times. Their average response time is one month. If the first correspondence does not solve your problem, then good luck.
You Have Access Hashflare User Dashboard and That’s It.
Hashflare gives you access to a dashboard showing how much BTC you earned from mining. That’s what it’s like. While investing in cloud mining, you never know how many BTC’s initial investment was mined with them.
The only thing you can do is believe their word about how many BTCs they mine for you. They’re not regulated by any authority to tell you the facts. Most probably, they’re showing you what their interest is.
Reinvesting or Withdrawing Your Cryptocurrency Earnings
Reinvesting in Hashflare is like a cat chasing its tail. Your crypto is always their crypto, and you have the hope for a return.
Many people reinvested their mining earnings to buy more mining hash power. I was one of them. If you do so, keep dreaming.
When The Things with Hashflare Started Going Wrong?
All went well while BTC’s value was over $10k. By mid-2018, Hashflare announced that “Mining BTC was no longer profitable” and stopped mining before Hashflare decided it was profitable again.
Hashflare sent an email to the people titled [IMPORTANT].
It is stated that:
“All current SHA-256 bitcoin mining contracts will be terminated today, July 20.”
Many on Twitter and Reddit call this exit scam. That’s absolutely true. You can object and say, “The company is still there to accept new customers.” How could it be an exit scam if the company is still in business?
Well, Hashflare raised funds from investors and stopped mining without freezing accounts. Then they let all contracts expire before they decided to start mining again. That’s exactly what happened with Hashflare.
They didn’t freeze our contracts because “Mining BTC wasn’t profitable anymore.” Why would somebody continue mining BTC (let customer mining contracts expire) if the mining process stopped?
They kept charging people money (from leasing mining equipment, paying for electricity, etc.) as if they were mining. People purchased mining resources, and their mining contracts expired without even taking their initial capital back.
Hashflare purposely allowed the customer contracts to sit for expiration when none of the customers making any money. That’s the dark side of Hashflare that they don’t want you to know.
By the next bull market, the crypto mining industry will have new investors. Unfortunately, they very likely not profit from the experiences of earlier investors of Hashflare. It is hard to find genuine information online.
When you search for cryptocurrencies online, you find garbage news with zero value. Crypto news adds zero value to your crypto investment. You should never ever consider news while you make an investment decision.
This is more true with the cryptocurrency market. But this is a topic of whole another post.
All in all, It’s your money, it’s your life. I am not the one who can tell you what decisions you should make with your investment. I encourage you sharing this post on social media to let more people knowing about Hashflare’s business model. Have a great day!