Topic: Are Mining companies offering daily returns on investment are SCAM ?? (Read 115 times)

Never have heard any mining company to state guaranteed (and far-fetched) returns. True some of them advertise returns after X months, but the truth is everyone knows you won't be making that muh money since they'd get maintenance fees and such on your daily earnings. 5% a day is an aggressive return and would likely cripple a business in a matter of a few weeks. It's more likely a Ponzi scheme than a cloud mining and no cloud mining service is still viable to put your money in.

According to me its a scam because I tried mining for 3 days continuously but at 4th day I found it scam and all satoshi's were lost.
BTCBTCBTCBTC

5% a day is not a cloud mining service, its most likely an HYIP Ponzi scheme.
As for legit cloud mining you need to run their numbers and see if it is profitable. I personally think that if you can see good profits in their numbers it is a good sign. I will use hashflare's numbers below as I know them.

1. Take the price of 10Gh/s on a contract and work that out to a fraction of an S9's price. An S9 does around 13.5 TH/sec. So that means they can sell 1350 10Gh/sec contracts. Lets say it's 2.2 USD per 10GH. That means they earn 2970USD per antminer they have. Each antminer costs them 2320 USD(they most likely pay quite a bit less as they will be ordering in bulk)

2. That leaves them with a profit of 650USD per year per antminer in direct sales. This I would expect would form part of their actuall business profit and "risk money" in the event of equipment failure or downtime if it is out of warranty.

3. They then have the maintenance fee, 0.0035 USD per 10Gh. This means each antminer earns them 4.7USD per day. We now need to go look at what power costs by them, and how much each antminer costs. I think they mine in Iceland ? ( Im not gonna do all that effort for a post lol). But the margin on this should be able to cover power, rent for the building, airconditioning and staff salaries(remember you will need people at a large farm full time to clean dust out and do general maintenance). Remember they will probably have a few thousand antminers.

If these numbers add up to a healthy looking business then I say you are safe(ish), if not then I would run the other way. Ofcourse you also need to do whatever you can to see if the facilities actually exist. Hashflare and genesis are probably your safest bet if you want to do this.

But remember cloud mining aint always that great, if difficulty keeps skyrocketing and price keeps dropping you could end up taking a loss. It is not infinite free money and make sure you run the numbers before you chuck money into these things.

Hope this helped

Can someone  let me  how to check whether  the mining company is genuine or not.  Question stems from the fact that many new entrants are enticed by mining companies by giving some hash power  and promising daily returns  up to 5 % free luring them to upgrade and buy more has power .. This way these companies earn enough BTC and ETH  and then vanish from the scene one day . Thus duping so many investors . how to avoid them are their any genuine offers