The Ultimate Hashflare Review
Hashflare is a UK-based cryptocurrency cloudmining company. In this Hashflare review, I will be describing my experience with this company. Is Hashflare Legitimate? Was I able to get my initial investment back? How were the payouts? What I liked and what I disliked. And finally would I recommend this company?
Let’s get started…
What is Hashflare?
Hashflare is the second biggest cloud mining company after Genesis Mining.
Cloudmining companies advertise themselves as a service which makes mining accessible to everyone without the hassle of investing in equipment as well as the maintenance.
How does Hashflare work?
In very basic terms, you buy hashpower (computing power) buy renting equipment with Hashflare.
Through mining contracts, the cloudmining company mines the cryptocurrencies on your behalf.
Then they deduct the energy and maintenance costs.
The remainder is pure profit.
Related: How does cryptocurrency mining work?
How does a Hashflare mining contract work?
A Hasflare mining contract is where you buy hashpower to mine a specific algorithm.
Then you choose algorithm.
Protip: Each cryptocurrency runs under an algorithm and one of the function of the miners is to decrypt the algorithm.
Once you have chosen the algorithm you would like to mine on, you need to choose the amount of hashpower you would like to buy and checkout.
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Hashflare then deducts the energy costs and maintenance fees.
As soon as you get a paid you can either reinvest it in the website to buy more hashpower or wait until you reach the minimum payout before you can withdraw to your wallet.
Top 3 things to check when buying a contract
- Contract duration
- Maintenance cost
- Minimum Payout
Is Hashflare Legitimate?
Hashflare LP is a cloud mining company based in Edinburgh, Scotland.
It has been in business since 2015 and created by specialists from Hashcoins.
It is the second most popular cloudmining service after Genesis Mining.
According to its website it has 2,500,000 users worldwide.
They also have quite a huge following on social media.
Are they legit?
They are definitely legitimate.
However, it is important to remember that cryptocurrency prices are extremely volatile.
Investing any website is riskier than just buying the cryptocurrency and holding on to it.
Whether they are a good investment is an entirely different story…
I invested around $80 in the website with around $30 in transfer fees.
(The blockchain fees were crazy in 2017)
As you can see from the above image, it won’t increase your payouts.
Hashflares makes it easy to reinvest.
But 12 months later, I have not been able to withdraw a single cent from this website.
Is Hashflare profitable?
Putting your money in this website definitely does not guarantee an ROI even any payouts.
Will you get rich with Hashflare?
Why I decided to give Hashflare a chance
What I liked INITIALLY liked about Hashlare that they claimed to choose the most profitable coins to mine.
So I just needed choose the algorithm you want to mine on.
Sounded like a great idea.. right?
The Great Bull Run of 2017
I have to admit that this sounded great at the beginning of 2017 when all the altcoins prices were shooting up and I couldn’t decide which coin to mine.
However, this turned out to be a problem as the cryptocurrency bubble burst.
The 2018 Depression
When the 2018 bear market hit, this turned out to be a problem.
As you get more comfortable with different cryptocoins and altcoins, as well as have a better understanding how cryptocurrency mining works, you will eventually want to be able to choose which cryptocurrenc you want to mine which Hashflare does not allow you to do.
Is Bitcoin mining is profitable?
Bitcoin mining is profitable in you plan on buying a lot of hashpower.
By a lot, I mean enough hashpower to compete with the big mining farms.
Bitcoin is the first cryptocurrency as well as the most popular.
The problem with being the most popular is that there already a lot of miners.
The more miners the higher the mining difficulty.
As mining difficulty increases, the costs also increases.
The Law of diminishing returns
It also important to remember that bitcoin coin generation halves every 4 years which increases the mining difficulty.
Bitcoin might have been profitable to mine from a basic computer in 2009 but if you intend to mine BTC, remember that you are competing with enormous mining farms.
On September 1st 2017, Hashflare changed all the lifetime contracts to end them on August 2018
Ending Bitcoin Mining contracts
In May 2018, Hashflare announced to its users that it would be ending all Bitcoin mining contracts.
It then reactivated them after a huge backlash on social media
Related: Genesis Mining Review
Investing or just gambling
Cryptocurrency mining is an even higher risk investment ask the miners are betting on the future value of the cryptocurrency in order to recup their initial investment.
So getting if you get into a “cryptocurrency investment” website, you’re leaving investment territory.
What you’re doing is gambling 😉
Finally remember that these cloudmining websites don’t exist to make you rich…
Let me know if this info was helpful for you 😉
Founder of Satoshi Library
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Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!