Last week a big cloud mining operation, CEX.io, shut down. (http://www.coindesk.com/cex-io-halts-cloud-mining-service-du...) The price of Bitcoin has dropped to the point that their operation was unprofitable.
Because the total weekly reward to all miners is fixed, all miners are in direct competition. If mining effort doubles, return on mining investment halves. The big operations are starting to hit that limit. The little guys hit it a long time ago.
Last week a big cloud mining operation, CEX.io, shut down. (http://www.coindesk.com/cex-io-halts-cloud-mining-service-du...) The price of Bitcoin has dropped to the point that their operation was unprofitable.
Because the total weekly reward to all miners is fixed, all miners are in direct competition. If mining effort doubles, return on mining investment halves. The big operations are starting to hit that limit. The little guys hit it a long time ago.