The well-known company of cloud mining Genesis Mining encourages some customers to switch to a premium-account, which provides cooperation for five years. The client service will no longer be available if it refuses to fulfill this condition.
The innovation will affect those customers whose contracts bring less money than is required to service them, the company said in a statement. Thus, Genesis Mining gets rid of unprofitable contracts.
In its blog, the Icelandic company said that it would be forced to terminate contracts with those users whose contracts do not bring the required amount of funds and do not cover maintenance costs for two months. Those who want to stay on the platform will have to transfer their accounts to a premium rate.
WHY IS IT IMPORTANT?
- The decision of the company is connected with the difficulties of mining, which became evident in the last six months. Mining is becoming more complicated and requires more and more energy.
- Miners dropped even more due to the falling rate of bitcoin. Accordingly, contracts of some users now bring less than their daily maintenance costs. The 60-day grace period will begin for them. After this time, contracts with no expiration date will be closed.
- Another service of cloud mining - Hashflare - also spoke about similar problems in the summer. The company acknowledged that payments for 28 consecutive days were lower than the cost of servicing the contracts.