Hashflare says "No Scrypt hardware being produced today"

[allankey]

As I am aware from learned members here that cloud mining is not profitable, I began researching around. I came across Hashflare.io that posted on their Facebook -----

"Many users question us regarding the price increase for Scrypt contracts. Here we will try to explain everything shortly. The main reason is the growth of LTC value and the increased ROI. With these 2 things in mind, we need to consider the fact that there is practically no Scrypt hardware being produced today, and we are running short of our own equipment as well. While we could simply stop selling Scrypt contracts and mine for ourselves, we decided to look up for the alternatives. One of them is to continue selling these contracts but for an increased price.

Two important key moments:

1. After the increase of the price, the ROI for Scrypt contracts will take 6.5 months and the ROR will be over 130% per year.

2. If the value of LTC continues to increase, we will see a sharp deficit of Scrypt hardware meaning that the price for Scrypt cloud mining will also grow accordingly."

How valid is their argument?

[crazyivan]

So what u re saying is they claim nobody produces this hardware anymore but them?

[allankey]

So what u re saying is they claim nobody produces this hardware anymore but them?

That is not what I am saying. But that is what Hashflare is claiming on their Facebook page. I searched in aliexpress.com which shows there are many scrypt equipment provider. There are GridSeed, LKETC, A2, Silverfish.

Is Hashflare trying to throw a smoke screen?

[crazyivan]

So what u re saying is they claim nobody produces this hardware anymore but them?

That is not what I am saying. But that is what Hashflare is claiming on their Facebook page. I searched in aliexpress.com which shows there are many scrypt equipment provider. There are GridSeed, LKETC, A2, Silverfish.

Is Hashflare trying to throw a smoke screen?

To tell u the truth, I do not know a single scrypt provider worth of buying from. If you look at LTC mining diff, it s been more less static for months. True, this kind of behavior might mean something s wrong. On the other hand, if they wanted to scam and run, wouldn't they opt to announce Scrypt price increase to take place in a week, for example, so people would buy more before they run.

Nah, I think they ll last. Still, this is my personal opinion, you need to take care of your investments.

[JasonXG]

So what u re saying is they claim nobody produces this hardware anymore but them?

Yea what the hell ! I dont believe that. Surely they still produce hardware else GPUs are back in.

Sounds like a bunch of crap to me.

[crazyivan]

The main issue with scrypt is that LTC mining diff does not go up at all. One have to ask why is that? It is obviously profitable, so why companies which produced scrypt miners before do that again?

[allankey]

The main issue with scrypt is that LTC mining diff does not go up at all. One have to ask why is that? It is obviously profitable, so why companies which produced scrypt miners before do that again?

Thank you for your inputs. It makes sense. But Hash Flare's bold statement is puzzling indeed.