Hong Kong-based bitcoin cloud mining company Zeushash has frozen Gigahash/second (GH/S) bitcoin mining in response to the dramatic fall in the leading cryptocurrency’s price in the New Year.
As bitcoin price falls, even large mining firms begin to lose money supporting the proof of work operation that generates bitcoins. The mining hardware or servers require significant amounts of electricity to generate bitcoin. Thus, the margin between bitcoin value and the cost of power shrinks and goes into a deficit when the price of bitcoin drops significantly.
Dear ZeusHash customers,
As Bitcoin price witnessed significant and continuous dropping lately, the daily payouts of GHS will not be able to cover maintenance fees (now at $0.0023 per GHS per day) very soon. As you can see the payouts today have already been eaten up by 98%+ of maintenance fees.
According to our Terms, “in case the daily mining return is lower than the maintenance fee for at least 10 days in a row”, we’ll have to cease the operation of our mining farms and freeze all GHS contracts, which is a forced measure when there’s no mining profitability.
We’d like to warn you not to purchase more GHS as it’s not the best time for investment. And we are working on different plans for your profits when the conditions for freezing GHS contracts are met. The final solution will be released then.
As a dedicated cloud mining platform, ZeusHash will continue its efforts to seek for better solutions to deliver more cost-efficient cloud mining contracts. Negotiations with our partners are going on smoothly and it won’t be long before the new contracts are available.
The gradual fall in bitcoin price through 2014 made it more and more difficult for hobby or home-based miners to operate. Now, even large mining companies and cloud miners are finding it hard to continue operating.