Cloud mining service providers have been facing hard times ever since the Bitcoin price dropped below $320. Whereas major Bitcoin cloud mining service providers had to shut down operations for an undisclosed amount of time, new companies started appearing all over the internet. XScrypt is one of those cloud mining companies, but it looks like the “company” has gone bust after multiple issues with payouts.
XScrypt: Profitable Cloud Mining Despite Falling Bitcoin Price
Running a cloud mining company is not as easy as it may sound. Not only does a cloud mining operator need access to mining hardware — either self-hosted or remote — but there are tons of electricity costs and maintenance fees involved as well. On top of that, there is a growing demand for cloud mining hashpower, which must be met in order to satisfy the market.
But what is perhaps the biggest factor in the world of cloud mining is the Bitcoin price. Keeping in mind all these agreements and costs that have to be covered, there also has to be room for the company to make a profit. And the higher the Bitcoin price is at any given time, the better chance to make a profit and keep operations up and running.
It is quite a surprise to see so
Originally appeared at: http://bitcoinist.net/xscrypt-cloud-mining-provider-shows-true-ponzi-colors/