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Topic: Mining contracts - the new ponzi - page 2. (Read 17433 times)

legendary
Activity: 1596
Merit: 1027
August 12, 2015, 12:24:08 PM
Cloud mining is very Risky; and in general, cloud mining contracts are nothing more than ponzi schemes.

If you want to cloud mine you should buy ghs and not mining contracts.

There are 2\3 sites that are trusted: cex and hashnest. However, for now cex.io is not a good option.
legendary
Activity: 1834
Merit: 1036
August 12, 2015, 01:27:33 AM
Yes, you are right. When you find BTC mining company website - you never know - it is scam or not.  Cheesy

Reading this will be a good start : https://bitcointalksearch.org/topic/cloudmining-101-ponzi-risk-assessment-878387

Really useful :-)

that thread is a very good guide for newbies and old ones who wants to dive into cloudmining investment
it would really help if those sites offering cloudmining put pictures weekly of their operations or maybe post somewhere in youtube
hero member
Activity: 770
Merit: 500
✪ NEXCHANGE | BTC, LTC, ETH & DOGE ✪
August 11, 2015, 09:52:52 PM
I think that one can take the risk if the site has these conditions:

-They offer selling your GHs /KHS

-They provide reasonable withdrawal fees


Then you can invest some bits with caution (not a great amount) "mine" for some days (5-7), sell so that you get even or some small profit, and leave the rest of the profit "mining".


Now these small amount is mining "safely" as you would only lose time if that crumbles.
hero member
Activity: 861
Merit: 1001
August 11, 2015, 04:13:54 PM
Yes, you are right. When you find BTC mining company website - you never know - it is scam or not.  Cheesy

Reading this will be a good start : https://bitcointalksearch.org/topic/cloudmining-101-ponzi-risk-assessment-878387

Really useful :-)
legendary
Activity: 1834
Merit: 1036
August 11, 2015, 12:42:33 PM
Every time i remember those "mining contracts" I remember cloudminr.io
I was so sure before that they will not close down because of that "mining contract" because they offer 5 tears mining contracts. But I was wrong and so does the others who invested with cloudminr.io
One giveaway on cloudminr.io is their domain name, which is registered only for 1 year, yet they are offering 5 year mining contract.
hero member
Activity: 658
Merit: 500
August 11, 2015, 09:54:47 AM
Yes, you are right. When you find BTC mining company website - you never know - it is scam or not.  Cheesy
legendary
Activity: 1834
Merit: 1036
August 08, 2015, 06:04:56 AM
its hard to tell if those cloud mining sites are really mining even if they shows photos since it's easy to crop pictures nowadays. BTC exchange is quite low for a company to mine and offer cloud mining unlike before where a BTC is worth more than $300 USD.
BTC cant even stay long in the $300 USD level for a long time.
sr. member
Activity: 266
Merit: 250
August 08, 2015, 05:58:22 AM
Otherwise i have still some Cloudminr.io Accounts that i can  sell up to you  Grin so... if ure interested  Cheesy

No for sure.. There are simply quit enough scmamers out there... everyday a new Porject...
But there are, legit Cloudmining Services ... i can give u some tipps.  Wink

regards
member
Activity: 174
Merit: 10
Mundus Ex Plurimum
August 07, 2015, 12:57:41 PM
Bitcoin Cloud Mining looks good on paper but hard to make it work for you on a small scale.

I tried BitcoinCloudServices. com and CloundMinr.io and for a while it looked good until the payout stopped and one guy even put his whole user list on his website claiming it got hacked. Needless to say, both are 100% scams.

Bitcoin fever is hard to resist so I now  mine alt coins and convert those to bitcoins.

Alt coins are much easier to mine (some even with cpu only) and you can cash out every day if you like. But beware, a lot of pump and dump in the alt coin world. But some of those alts are worth while keeping for the long term and make some decent money. Something that's mot possible anymore with mining bitcoins. Except if you throw tens of thousands of dollars on hardware.

PM me for a list of suggestions if you're interested.
newbie
Activity: 1
Merit: 0
August 05, 2015, 03:30:06 AM
I wish it were not a ponzi scheme, but it is the most obvious answer.

I singed a contract with the President of isapassion.com and paid 212 dollars back in 2013. I see him live and kicking, but no sign of bitcoin or refund is in the horizon.
The site is gone and so are the internet traces of the person who took my money.
member
Activity: 95
Merit: 10
August 06, 2014, 05:59:04 AM
sorry it's actually been 3.5 months
member
Activity: 95
Merit: 10
August 06, 2014, 05:49:48 AM
I've got a small contract with pbmining and they have paid out 80+% of my investment so far after just 2.5 months.  So although it's quite likely it is a ponzi, at least it's a healthy one... they never missed a Sunday payment for me. 
omz
newbie
Activity: 8
Merit: 0
August 02, 2014, 12:31:50 AM
Not bad! I used it
DrG
legendary
Activity: 2086
Merit: 1035
August 01, 2014, 11:37:04 PM
The benefit of cloud mining is avoiding all the headaches of dealing with hardware.  The downside is that you're adding another variable into your mining success.  You're relying on the mining cloud or contract to uphold their end of the bargain.  Once they have payment you really don't have any recourse.

You can make money with contracts if you can treat the miners as your own in-house eq and control the pool they mine on and the algo.  Very few mining contracts offer this.
legendary
Activity: 1694
Merit: 1024
August 01, 2014, 10:44:21 PM
I think that a miming contract would be great if you could choose your own pool to mine on to prove that you have actual hardware mining for you. But of course that wouldn't work for all these scams either.
full member
Activity: 182
Merit: 101
August 01, 2014, 09:26:03 PM
yes true once mining in cex.io or pbmining with GHS prices low and not too much benefit for us if we are not a large capital Smiley

but now I just choose to buy or lease mining equipment rental rigs
newbie
Activity: 1
Merit: 0
August 01, 2014, 01:11:55 PM
Anyone have experience with scrypt based hosted mining contracts. Looking into this site https://www.minerking.com/ but the prices seem way too good to be true.

Don't forget the fees and mining cost added on top of the shiny advertising figures.

The costs of minerking one time mining:
* you pay 49/59 USD for 10 THash / 100 PHash of LTC/BTC one time mining plan
* a fee is added on top for payment, in case of one plan each this was 7.38 USD

Now for the fulfillment of the mining part. As of today you will get:
* approx 10 GHash/s of BTC mining / 1 MHash/s of LTC mining, i.e. fullfillment will take approx. 10 million seconds (~116d)
* revenue for BTC is split as follows: you mine 0.0000007 BTC/min, deduced is cost of mining 0.000000112 BTC/min and keep 0.000000588 BTC/min
* this will yield 0.098 BTC (advertised are 0.124 BTC)
* revenue for LTC is split as follows: you mine 0.0001291 LTC/min, deduced is cost of mining 0.0001123 LTC/min and keep 0.0000168 LTC/min
* this will yield 2.8 LTC (advertised are 3.33 BTC)
* at  current echange rates (500 USD/BTC, 14 USD/LTC) this would pay back 88.2 USD, not counting the difficulty increase.

Conclusion: Figures may change in the future (and difficulty increase lets me expect the change will be for the worse) but as of now an investment in minerking one time mining will not only pay less than advertised but will not ROI. In contast, you will lose approx. 1/4 of what you paid in USD.

Hi,

I don't understand your calculations...I have multiple Minerking contracts, and I earned a decent profit with the packages.
hero member
Activity: 1568
Merit: 510
Leading Crypto Sports Betting & Casino Platform
May 22, 2014, 04:07:46 PM
The catch is, at the end of the 5 years, they keep the machines

Long before 5 years the machines will be worthless. Even regular computers are close to worthless after 5 years and they aren't going up the ASIC R&D curve the way bitcoin miners are.



Well, sure but not if the price per coin is $5,000 per unit, not if electricity is generated for free, which both can be possible, all at once too.  The price shoots and drops by hundreds, like Gold regularly does, this means people recognize it is worth that much compared to fiat.  Those machines became highly affordable when the price of Bitcoin tanked because many miners were getting out of the business and many nearly giving away machines; Manufacturers started to mass produce because the yhad a lot more coin to play with because of the new influx of miners, well, those that could did, since now more people could afford them.  This shot a demand through to yingyang and bolstered the in-stock market.  The price in Bitcoin Asics is not priced in dollars but in BitCoin.  The machine is only worth $200 but was once sold for multiple thousands worth of Bitcoin; set by the network.  If price of BTC doubled overnight, so would the cost for miners but you'd likely pay the same amount in BitCoin.  It would cost you more fiat to buy Bitcoin.

Everything happened at an opportune time, don't you think? 

I still own every computer I ever owned from my 1992 IBM ThinkPad and they still all do their own work in my lab; all they way up to my newest ThinkPad W530.  Just because something is obsolete, doesn't make it useless, just means you need newer machines to pick up the slack and get creative. 

Comparing with consumer computers, is not being fair because you can buy a high end computers that will be obsolete after 15 years and not just 2-3 years like with HP's, Acer and other low grade brands.  My ThinkPad T61P is still considered above average, 8 years after; but that's the same model astronauts take into outer space, not cheap stuff.
member
Activity: 83
Merit: 10
April 29, 2014, 12:53:47 AM
#99
How can anybody fall for this?!?!
full member
Activity: 182
Merit: 100
April 26, 2014, 11:28:38 PM
#98
I did cloud mining and gpu mining. But i lost money in both. If i would have purchased the btc directly i am in profit.
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