Topic: Are Bitcoin Enthusiasts SUCKERS? And Cloud Mining and Hashlets likely the next Big Scam? - page 2. (Read 2758 times)

Giving thought to Cloud Mining Services that seem to be popping up rather quickly.

While GAW seems legit and has has some decent press coverage, my thoughts on these newcomers are this:

When you buy a contract, whether it be a year or a lifetime... How do you know you're buying actual mining at all? It could simply be simulated in terms of fake numbers generated telling you your hash rates and returns based off current market factors. How does one know if the actual mining farm actually exists.

It would seem, that a company could get away with selling phantom/ponzi mining for quite a while considering:

- Setup costs are next to nothing.

- The time it takes to fully return your initial investment is months (likely 6-8) out.

- During that time only a fraction of people would withdrawal proceeds, many may reinvest into more hashlets.

- During that time many new investors would join in, funding any withdrawals.

- The Bitcoin brought in by customers could be either cashed out, churned, or used to buy hashlets at GAW... Which is known to be legit. This would mask any questions of why the network Hashrate isn't increasing if the company got very large.

- If the customers BTC were used to purchase hashlets elsewhere, the newly mined coins would be laundered, likely very difficult or impossible to trace.

I only bring this up because a few of these new companies show no pictures of their "huge" farm. None.

Odd isn't it?  If I had a 2 PetaHash Farm, I'd have a photo of it on my website.

Strato