My HASHNEST Experience

[plexasm]

I bought 15 AntMiner S7's in the beginning of july for 9.5 BTC on hashnest

Earnings were about .07 BTC/day until the halving, when they went to around .01 BTC/day on average.

I just cashed out my 73 TH of power for 6.7 BTC, and was more than willing to take a loss of 2.8 BTC - explained why below

Hashnest does do real mining, but they're more cunning than other companies when it comes to ripping you off - they do it through their maintenance/payout ratio. This ratio changes every day, making earnings quite unpredictable.

I failed to take into consideration the possibility of Hashnest maintenance/payout almost tripling after the halving. I don't believe that this fee is genuinely what Hashnest has to pay on power and real estate. I truly believe that this fee is arbitrarily set by Hashnest as determined by the profits they wish to make per day, knowing that you have no leverage over them once you've paid for your miners, they "have you by the balls", knowing that you'll be forced to take a loss if you don't pay their ridiculous maintenance costs.

At the time of buying I assumed that the difficulty would either decrease or remain around constant -- and also less miners on AntPool -- and thus would increase your share of bitcoins that were mined, despite the halving, and I was correct about that. Problem is, the Hashnest maintenance fee will completely destroy your investment (currently at 81%)

If the difficulty was projected to continue to decrease, I probably would have stuck around, but the next difficulty I think will increase pretty significantly, which may cause the maintenance fee to go around 90-95%, depending on BTC price

So when you mine on Hashnest, you have two factors working against you: 1. bitcoin difficulty and 2. the hashnest maintenance/payout -- this makes your investment extremely risky and unpredictable

Ultimately, I highly recommend you invest bitcoin into other areas, NOT Hashnest, as they have total control over your earnings via their maintenance/payout ratio which changes every day. Most days after the halving were embarrassingly bad.

The big problem I have with Hashnest is that they can decide at any time to increase their profits by increasing their maintenance/payout ratio to arbitrarily high levels, and there's absolutely nothing you can do about it, since you've already paid for your miners. There's no way to verify that they're being honest about their maintenance costs (even if they are, why invest into a company who needs to take 90% of your money for maintenance?). Talking to people who run their own large mines, the Hashnest maintenance cost seems insanely high, especially for operating in China who has some of the cheapest energy costs. The Hashnest customers have no leverage over them. That is dangerous in my view as they have no motivation to make changes to facilitate a cheaper maintenance cost.

I would have stayed with Hashnest if they allowed you to convert 3 S7's into 1 S9, but they recently announced that they will not allow this, making your possibility of meeting ROI about 0% considering the difficulty will be increasing in the future... You will probably be earning 5% of what your miners generate in the near future.

Some may think S9's will still be good, but I don't think so. I think they will be far overpriced, as they have no competition, and by the time you're remotely near meeting ROI, difficulty will be sky high and you'll be in a similar situation

Hope it helps

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[bapparabi]

yes yo are correct at this level 81% we re earning dust ..so waiting for s9 to be added in panel we can do some valued mining ..hope they add soon

[ps_jb]

The OP is absolutely, 100% right. All of those business owners think ONLY about their profit: they do not care that we also need money, that we spent our money on their service, we dont want to wait 290 day on ROI - they do not care.

This world is so unfair place...

Ups, forgot to add - Hashnest is a WORST of all unfair places

[smho_16]

Hashnest is not worst of all places. Its that the S7 antminers are not that profitable anymore unless you live in a place with almost free electricity. I know soon they will add the S9 antminers which many think will be profitable. So let's wait the S9 and then buy hash power again. For the moment is not profitable cause 5th makes you about 0.004 or something like that per day and this will go down as days passes because of maintenance fee and difficulty rising.

[Xanidas]

Hashnest is not worst of all places. Its that the S7 antminers are not that profitable anymore unless you live in a place with almost free electricity. I know soon they will add the S9 antminers which many think will be profitable. So let's wait the S9 and then buy hash power again. For the moment is not profitable cause 5th makes you about 0.004 or something like that per day and this will go down as days passes because of maintenance fee and difficulty rising.

Difficulty is decreasing so i don't see the s9 will be on the market soon.

Good thing for me i sold my power a week before the halving so i maximed my money i can get from their site. I am just waiting for s9 too but probably it will be not on the market in the next month

[Ryan Dugan]

You all are very lucky you for all this on time and not too much after the halving. Going from 0.07 to 0.02 a day is massive loss. Strange how this happens.

[Lionidas]

Cloud mining is a farce. When will people start to understand this?
It is not profitable and never will be... EVER!

[ComputerGenie]

when you mine ..., you have two factors working against you: 1. bitcoin difficulty and 2. the... maintenance/payout -- this makes your investment extremely risky and unpredictable

'nuff said

[shield132]

The OP is absolutely, 100% right. All of those business owners think ONLY about their profit: they do not care that we also need money, that we spent our money on their service, we dont want to wait 290 day on ROI - they do not care.

This world is so unfair place...

Ups, forgot to add - Hashnest is a WORST of all unfair places

Yes, business owners only care about their profit and I can't understand, why they are such? It will be good if you will also earn money and let your customers to earn something.

What I can tell about hashnest is that they are really mining but their ROI is worst and after halving it's silly to use hashnest for mining I hope they will add s9 or hope people will stop using their service.

[mobnepal]

Whatever they do mine in reality or just claim they are mining, in both cases users will keep on lossing because of high difficulty after halving and all the hashpower bought before halving will take years to get initial investment back. And also after halving most of the cloud mining haven't lowered price so all will loss in long run if bitcoin price don't get doubled, trippled in near future. Better to buy bitcoin and hold thinking bitcoin price will get doubled over time rather than investing in cloud mining.

[plexasm]

I hope they will add s9 or hope people will stop using their service.

Yea but until S9 has a competitor the price will be insanely high

[Duende68]

I hope they will add s9 or hope people will stop using their service.

Yea but until S9 has a competitor the price will be insanely high

Completely true. 

[justdimin]

I wholeheartedly agree with OP, he says what I have been saying for a long time. The only possible way for you to make your money back is the difference between what you bought the hash at and at how much you sold it, if the difference is less then what you made mining you make profit but if it is lower then you lose.

To be perfectly clear I do agree that S7 is not costing them 78% (I checked now ) maintenance cost, that means 78% what S7 makes goes to electricity and that is just impossible. They are screwing people with that cost and the only way you can make money is to short the value of their hashes which does not exists because EVERYONE would short the value.

[ComputerGenie]

TBH, has anyone* ever made any serious amount of BTC using any cloud service?




*setting aside those that got lucky solo mining

[DaddyMonsi]

I also bought some hashpower in Hasnest through the marketplace since I thought Hashnest is legit in terms of cloud mining but I was wrong. Yes I agree with OP that after the so called halving everything went down. Price per GHS went down and earning went down as well so I sold the Hashpower that I bought and never look back. That's my last attempt to invest in cloud mining. Never again.

[soros017]

Buying hashpower in parts, using the hash market, will certainly give you losses after a few months. The best option is to buy the complete package.

[resilientknight]

Yeah, buying hashpower in parts is not a good idea, when using the hash market, but the whole package might also be a bad idea, if the mining diff gives some high jumps, as happened last year.

[kanazawa]

Lot of people support cloud mining, but my two experience were very bad (Genesis Mining and PacMics of Hashnest). I really agree with OP because of the arbitrarity that is imposed. With GM I lost 50% of initial investment and anything was told me before they stop the payout. With PacMics the ROI was very low and was redetermined in the middle of the contract, I mean, when it was rolling, so I had nothing to do. Today I can't tell even one positive point in that kind of service.

[BitcoinSupremo]

Unfortunately all of the cloud mining are from long gone and dead. Even the legit ones like Hashnest gets you negative ROI if you buy GHS there. Maybe once they put in the market the new miners S9 that would give users some profit but I think they intentionally put them on the market only after some time. Users can't win anymore from cloud mining websites, legit or not, don't waste your coins.

[zenitzz]

There's nothing you can do except sell hash force now before experienced a great loss, especially after halving revenue has been reduced considerably.