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.

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Tim Draper Calls Indian Government “Pathetic and Corrupt” Over Bitcoin Ban

  • Tim Draper calls the Indian government "pathetic and corrupt" over a proposed ban on cryptocurrency.
  • Unofficial drafted bill has emerged online making the use of cryptocurrency punishable with 10 years in prison.

American billionaire investor Tim Draper has called out the Indian government over its purported plan to ban bitcoin and all forms of cryptocurrency. 

Proposed Bitcoin Ban

On July 14, blockchain lawyer Varun Sethi published to Twitter an unofficial draft of a bill circulating the Indian government that would ban the use of cryptocurrency. 

In addition to prohibiting the use of bitcoin, the bill seeks to impose a 10-year prison sentence on Indian citizens who “mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies.” The bill does allow one caveat for the digital rupee, which is a token issued and backed by the Reserve Bank of India (RBI). 

Pathetic and Corrupt

In response to the proposed ban, Tim Draper took to Twitter to vent his feelings against the Modi government. 

Draper, who is known for his massive investments in Baidu, Skype, and Tesla, has become a bitcoin bull over the years, in addition to issuing some of the more far-fetched price predictions.

The American investor has also been an active presence encouraging developing countries to consider the benefits of bitcoin and digital currencies. More recently, he advocated the utility of bitcoin to the Argentine government, a country that has been combating fiat hyperinflation for years. 

Others Weigh In

Other high profile individuals have voiced their disapproval over the Indian government considering a bitcoin ban, including Barry Silbert who predicted the decision having the opposite effect on bitcoin adoption. 

John McAfee also chimed in with his belief that governments have little control over the use of bitcoin. 

Supporters of the Ban

However, not everyone took kindly to Draper’s harsh criticism of the Modi government. Given the rise in cryptocurrency-related scams over the past two years, some Indian citizens believe banning bitcoin will be a net positive for the country. 

While Draper may be stirring national sentiment related to cryptocurrency, it’s worth noting that the Indian government has yet to impose a ban of any sort. However, given the amount of rhetoric over the last several months and the more recent emergence of the drafted bill, it appears the Modi government is indeed contemplating decisive action against bitcoin and digital currencies.