After Receiving Complaints, BitPay Terminates Association with Alpha Technology

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After Receiving Complaints, BitPay Terminates Association with Alpha Technology

BitPay, a leading Bitcoin payment processing company says that as it received a lot of complaints about Alpha-Technology it has decided to terminate its association. Though Alpha-Technology announced their services in October of 2013, and the UK-based Scrypt ASIC manufacturer was raising the bar at a steady pace, it could not materialize them at all.

For instance, the US-based mining company BitPay started to take pre-orders for their ASIC mining machines – Viper Miner 5MH/s and 25MH/s – in early January last year; however, despite failing to meet the delivery deadlines in October, Alpha Technology continued to take money from customers by introducing other products like self-developed chips.

A lot of complaints came up that Alpha Technology was delivering anything but ASICs. Then it came out that Alpha Technology was using the pre-order revenue for further research and developments. This sounded alarm among the clients who had paid for the Bitcoin mining machines as they felt they were being cheated.

It was a good business module for Alpha Technology wherein they were minting money. Nonetheless, this had to come to an end as some customers began to see red flags in their claims. They started asking for refund – this prompted banking and payment partners of Alpha Technology to cut ties with the company.

Bitcoin Mining by Individuals Has Become Expensive, Data Centers are New In

Needless to say BitPay is not the first one to take such action against the mining company because earlier payment transfer company PayPal also withdrew its services due to a massive amount of refund requests. Though Alpha Technology is making an excuse that it needed the funds for “further research and developments” there are not many takers.

A lot of customers who paid for the Bitcoin mining machines claim that they feel cheated as it was not what Alpha Technology promised to them. Though mining Bitcoin has become less profitable ever since the “uber” ASICS have entered the playing field, there is still a lot of demand from retail Bitcoin miners.

At the same time some data centers full of Bitcoin ASICS have come up at several parts of the world that mine Bitcoin in bulk to maintain higher revenue on investments. However, the demand for ASICs has gone up to great extent; a lot of new companies though claimed to deliver them within stipulated time, many of them including of Alpha Technology, failed.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com