Genesis Mining Offers Users Discounted BTC Contract Upgrades to Avoid Termination

  • Genesis Mining recently decided to offer discounts for contract upgrades, so users won't see their contracts get terminated.
  • This because of the bearish trend that has been affecting the crypto market, and the increasing mining difficulty.

Genesis Mining, the world’s largest cryptocurrency cloud mining provider, has recently revealed its bitcoin mining contracts are no longer profitable because of the bearish trend most cryptocurrencies have been enduring. As an alternative, it’s offering users a contract upgrade at a discount.

According to a recently published blog post, Genesis Mining has been paying attention to its users’ concerns regarding their mining rewards. The company noted, however, it is only able to influence the infrastructure it uses to mine, not bitcoin’s price or mining difficulty.

The bearish trend that saw bitcoin, the flagship cryptocurrency, drop from a near $20,000 all-time high in mid-December to about $6,500 at press time, coupled with a “heavily rising difficulty around April and May” saw rewards dwindle.

As a result, some user contracts are now mining less than the daily maintenance fee requires to be covered, and thus they entered the 60 days grace period, after which open-ended contracts will get terminated.

Genesis Mining

The 60-day grace period is mutually agreed upon by Genesis Mining and its users when contracts are sold. It starts whenever mining rewards go below what it costs Genesis Mining to maintain the infrastructure used in the user’s contracted hashrate. If after the period the market doesn’t recover, and the user’s mining power remains unprofitable, the contract is terminated.

To give users a chance of maintaining their contracts Genesis Mining lowered the price of its premium service Radiant. It essentially converts the contract from open-ended to 5 years with no termination, and reduces maintenance fees to $0.14 a day.

As CryptoGlobe covered the bearish trend also affected other cloud mining companies. Hashflare, one of Genesis Mining’s biggest competitors, terminated users’ active bitcoin mining contracts for the same reason last month.

Notably Genesis Mining managed to stay profitable for longer than Hashflare. The company, known partly for its BTC awareness campaign that targeted Warren Buffett, has earlier this year shown faith in EOS by becoming a block producer.

While some users may upgrade the service, others could get lucky if they don’t. According to bitcoin bull Max Keiser, the flagship cryptocurrency’s “price follows hashrate.” Its hashrate is, according to available data, at over 50 exahash, up from 5 in only 12 months.

Deloitte Luxembourg to Trial Bitcoin Payments for Staff Lunches

Neil Dennis

Deloitte, one of the so-called "Big Four" audit and consulting firms is to allow its staff to pay for their lunch in bitcoin, the Luxembourg Times reported on Tuesday.

While the firm does not plan to allow clients to pay for its services in bitcoin in the near future, the company said it was pleased to allow the lunchtime trial for its staff to "assess this new technology" in the company canteen.

While it doesn't transact in bitcoin, Deloitte has been active in developing blockchain technology for its fund management business.

PwC to Accept Bitcoin

The Luxembourg branch of Big Four rival, PwC, announced in early September it would accept bitcoin payments from its clients from the beginning of October. 

PwC said in a press release it was making the move to acknowledge the needs of its clients and the increasing adoption of crypto in Luxembourg. It added:

Our role is to lead and it is only by being an active leader with exposure that we at PwC Luxembourg can understand the challenges inherent to the crypto world.

 

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