The Bitcoin mining company CloudHashing.com is planning to launch a major cryptocurrency mining operation with a monthly value of $20 million. The cloud-based operation rents out computing power to customers around the world and it is now expanding its offer.
A spokesperson for the London-based company announced that CloudHashing will boost its capacity to 2.5 petahashes per second, a big improvement when compared to the current 1.5 petahashes per second. The company will be using the latest ASIC technology, which will surely generate a lot of processing power.
Although the calculations are not exact, 20$ million worth of Bitcoin per month is a safe bet according to the current exchange rate, IBT reports. One BTC is currently worth almost $635 on Bitstamp, for instance.
CloudHashing is betting everything on this new expansion plan, calling it “a formidable cloud supercomputing network of mining machines”. The company, which rents its powerful rigs at rates of between $999 and $8,999 per year, divides up the Bitcoins obtained through the mining process between its customers, but explores exclusively 20 percent of its network’s capacity.
However, CloudHashing is not the only ambitious Bitcoin-related company making the news. During this week, a Seattle-based miner opened the doors of his massive Bitcoin mining operation, which is producing around $8 million per month. Dave Carlson claims he runs “the largest mine in North America and most of the rest of the world”.
Still, the London-based company is also launching another initiative that promises to stand out: the Mt. Gox Customer Relief Effort. CloudHashing has decided to rent out part of its network at a sale price to help the customers of the bankrupt Japanese exchange. The users that can prove they were connected to Mt. Gox can rent the company’s services for only $8 per gigahash, instead of the usual $25.
The campaign was inspired by one of the company’s employees, Lukas Gilkey, who lost more than $40,000 worth of BTC when Mt. Gox became insolvent.
CloudHashing.com is the biggest ripoff I’ve ever seen. Their rates our astronomical and they charge 10% fees over-and-over-and-over-and-over again.
If anyone signs-up for their service, they should be prepared to be GOXED again.
Everyone who is able to use a mining profitability calculator can easily Figuren out that 1 GH of mining power will generate no more than about 3-4 USD over all, that is due to difficulty increase in the bitcoin network.
So clearly cloudhashing.com is a ponzi scheme, or St least they are leaving people uncertain about that they are definitely going to lose half of their money.