We got this from Zeushash today.
Due to the surging of Litecoin minining difficulty, the daily payout of MHS
fails to cover the maintenance fee today. According to the term of MHS
contract, "the payout allocation will be terminated in case the daily mining
return is lower than the maintenance fee for 10 days in a row".
We are sorry to inform you when this continues for 10 consecutive days, we'll
have to terminate your MHS contracts. We are now on day four..
We didn't expect this happening so soon but we have no other choice.
Due to the surging of Litecoin minining difficulty, the daily payout of MHS
fails to cover the maintenance fee today. According to the term of MHS
contract, "the payout allocation will be terminated in case the daily mining
return is lower than the maintenance fee for 10 days in a row".
We are sorry to inform you when this continues for 10 consecutive days, we'll
have to terminate your MHS contracts. We are now on day four..
We didn't expect this happening so soon but we have no other choice.
A quick look at their fees and litecoin difficulty suggests what they say is entirely plausible.
Or I should say, was, because difficulty seems to been dropping again, so there might be some more weeks of payouts to come.
This however, is in no way evidence of a scam, but it does serve as an illustration of why mining in general is usually a bad idea: any apparent or excess profitability will quickly be gobbled up by extra deployments, causing difficulty to rise to the point where revenue and costs are in balance and cloud mining contracts become worthless. Unless you have a significant competitive edge (low costs), mining can appear to be profitable, but it will almost never end up being profitable. Its been like that since the very first asic, but people still get fooled by the short term %'s.
