Coinhive says goodbye to web mining due to market crash.
Coinhive, the web mining service of Monero, announced this week that it will close operations from next March 8.
According to the official statement, the team behind Coinhive will no longer service web mining a day before the change of the mining algorithm scheduled for Monero on Saturday, March 9. The main reason to abandon the project, after 18 months of operation, is that “it is not economically viable,” they say.
According to Coinhive, the monero web mining business (XMR) was affected in the last months after the decrease in the hashrate of the network by 50% with the bifurcation of October 2018, which also decreased commissions by 97% . This coincided with the bear market, which depreciated the price of XMR more than 85%. Currently, the price of this cryptocurrency is USD 49.64 according to CoinMarketCap.
Amid comments such as “some could anticipate”, Coinhive established that users of mining software can access their platform to request payments of the balance obtained by mining activity until next April 30. After that, the platform will be disabled.
Coinhive’s web mining generated up to USD 250,000 per month, according to a study carried out by the Technical University of Aachen. The quarter of a million dollars represented 1% of the blocks of the entire network during the first semester of 2018; becoming the largest provider of web mining.
Web mining by monero was popularized by malicious mining sites. However, computer mining is not inherently malicious, since, in the case of Coinhive, it was intended as an alternative to ads to monetize websites.
On the other hand, cryptoactives such as bitcoin and ether maintain the possibility of mining from the web. However, the infeasibility of web mining also occurred in the Bitcoin network, since the increase in the difficulty of the network made this method of mining economically unfeasible.
After Coinhive stops operations, the “anti-ASIC bifurcation” of Monero will occur, which was announced two weeks ago. With it, its algorithm will change from CryptoNight V8 to CryptoNight V4 as a measure to prevent the entry of ASIC miners into the network.
This bifurcation was planned for the next month of April, but, after investigating the increase of Monero’s hashrate during the month of December, they discovered the existence of 5,400 active ASIC mining equipment in the network; so they decided to change the network algorithm earlier to protect their decentralization.
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this articleand is not responsible for their products and / or services. This press releaseis for informational purposes information does not constitute investment adviceor an offer to invest.