Art by: Jing Jin

The cloud mining prices wars are heating up and KnCMiner is throwing its hat into the ring with the lowest price in the industry: US $0.62 GH/s. There are some caveats to that price, but it is extremely competitive regardless of which way you cut it.

KnC is known primarily for their ASIC mining hardware. Like many companies who realized that mining at home is simply not feasible or cost effective for many users who are interested in mining, they have recently got into cloud mining, and this new deal, announced late last week, has them entering the ring with a few other companies that have been cutting prices lately.

As KnC points out, the $249 for 400 GH/s for six moths ($49 a month) works out to $0.62 GH/s far below the competition's prices. The downside is that there are no other options. You can purchase up to 20 packages, but there is no variation on that. With that said, the price still beats the introductory rate at other sites, so not offering other prices is probably a good thing.

In explaining their reasoning, KnC CMO Nanok Bie gave this quote:

"We wanted to lower the barrier to entry and set a unit price that could attract a larger base - and decided to simplify our offer at the same time, but we've capped the number of contracts per order to 20 max."

KnCMiner also credits lower temperatures for their price decrease.

KnC, like most mining companies, had trouble reaching their ship target dates for their hardware, specifically for its Scrypt mining Titan ASIC. It did, however, attempt to make it right for customers by increasing the hashing power of the devices as the release date got pushed back. Cloudmining is an option for users wishing to skip all that uncertainty.

Mining is increasingly becoming difficult for end users to find a return on their investment. If KnC delivers 400 GH/s at the prices they are advertising, a small but not insignificant profit should be made for the user presuming there is no unanticipated jump in Bitcoin difficulty. Six months is a long commitment, and the space could change dramatically in that time. That said, with current difficulty rates, this seems like a great option to start mining for less than the cost of a modern gaming console.

KnC joins Zeusmining and as the third major mining company to either enter the cloud mining space or cut their rates this month. KnC hasn't been focusing specifically on cloud mining for as long as those companies, but seem to be entering the market swinging with this price point.

We will have more from the on going cloud mining wars as they progress.

Did you enjoy this article? You may also be interested in reading these ones: