Came across this article while doing my daily CoinDesk reading.
Number of bitcoin miners goes down
Over the weekend, Organ Ofcorti published a comprehensive analysis of weekly bitcoin network statistics.
The anonymous miner and blockchain data analyst pointed out that GHash.io reported a drop from 34,000 active user accounts to 6,000 user accounts on January 13th. The number then went down to 5,500 users. The drop was attributed to CEX.io’s decision to pull the plug on cloud mining operations.
As a result, the estimated number of bitcoin miners plummeted by almost 30,000 in a matter of days. However, this does not mean the hash rate went down. Following the crash, the hash rate recovered and returned to peak levels in less than a week, after hitting a low of 229,513,534 GH/s on 14th January.
The article goes on how cloud mining companies continue to face issues maintaining their contracts due to how their services and companies are structured. I specially liked this quote:
“The cloud mining market seems like a good idea in theory ensuring that the ownership of the hashing power is distributed among many participants. However the market suffers from a lack of transparency and operational risk which currently the industry from pricing the contracts efficiently.”
It’s true, that’s why we’re aiming to be different. GetHashing Crowd - proof-of-everything