I think it's troubling they couldn't be bothered with upgrading their hardware as time went along.
At one time they gave an option to buy their mining hardware but I don't see that now. Their hardware was old a year ago and I didn't see any newer efficient hardware being installed.
They honestly didn't get a ROI and than some on their cloud operation?
Why would that be troubling? Cloud mining gets you a fixed amount of hashing power just like buying a miner gets you a fixed amount of hashing power. If you're running a physical miner then at some point, electricity costs will be greater than mining income. The same is true of cloud mining. If you bought a physical miner and it became unprofitable would you expect the seller to send you a new, more efficient miner free of charge? No, you wouldn't, so why would you expect a cloud mining service provider to upgrade their cloud mining contracts free of charge.
Its a sign that they may have been fractional reserve mining because BTC hasn't dropped that low where it is unprofitable to pay for electricity. Rather than popping like other cloud mining services they simply suspend payouts due to increased maintenance costs.
"Cloud mining services" that go pop are not cloud mining services at all - they're ponzis. If you look at the few legitimate services, they all have have a "stop mining clause" for when maintenance fees are greater than mining income. Anyone mining for a profit would turn their miners off under such conditions. It's simply common sense.
If it's so much trouble to keep things going then why are there other cloud mining companies that are doing just fine? Doesn't add up, but oh well, I didn't like cex.io much either, seems to me a case of poor management of their funds if they're truly having difficulties.
There are only 2 legitimate cloud mining services left in the game - ASICMiner's AMHash and BitFury's Bit-x. All the others are ponzis and therefore have no hardware costs to recuperate and no maintenance fees to pay. Hashnest has become unprofitable. Bit-x became unprofitable but they reduced their maintenance fees by 33% to keep themselves in the game.
cloud mining (ALL OF IT) has always been a ponzi.
No equipment, no mining, just promises of forever payouts.
things can't sustain when demand drops and overall price is not rising.
ASICMiner, BitFury, Bitmain and KNC all offer cloud mining services. None of them offer "forever" payouts. Perhaps you should look at some of the legitimate services from the manufacturers instead of the ponzis.
cloud mining is almost dead. maybe some chinesse to still mining
Both ASICMiner and BitFury run their own cloud mining services and both companies will have ~0.2 J/Gh ASIC very soon. In the coming months, you'll undoubtedly see those ASICs power new cloud mining services. I'll be very surprised if Spondoolies don't get in on the action too.
Cloud mining isn't dead, it's about to explode now that most manufacturers are running their own services.
