Topic: Why don't people realize the problems with cloud mining? (Read 505 times)

Cuz those people want easy money offered by cloud mining. Probably cuz beginner could be easily attracted with high profit and want to take a part to invest on cloud mining or because referral commission. If no one invest on those scammy sites, cloud mining would be never exist this time (except the legit one)

You are right. I know some people who have made a profit doing cloud mining but their profit comes from the price increase not the mining.

No matter how much you try you will never understand it. Even after so many warning topics, people with bad experience in cloud mining, everyday I see new cloud mining site and people who pays for their mining power. What to think about people, that most of the world population is stupid and ignorant? Like sheep's they go to do a haircut and they pay a lot of money and they give their wool, double loss, but who pays attention on that.
I understand that people wish to make easy profit, but this is worst then anything else. Even gambling is better, at least you have some real chances to win something big, with cloud mining you can just lose.

It's because some people just don't want to do the hard work but instead make their money work for them even though there is a small profit. Some just want to have a passive income because they are busy with their other jobs so investing in cloud mining would be one of the ways to have multiple source of income. Some people don't know how to mine themselves so they invest into someone else that has the tools to mine and then wait for their share of income. Some maybe are just starting venturing into cryptocurrencies and don't know where to put their funds so they start in cloud mining.

People do mostly think that holding bitcoin is an easy task or thing to do.Its sounds easy but its actually not.People are risk takes but only to those people who invested on legit cloud minings site like HF and genesis but for those people who did invest into scams then they are greedy enough on believing in to those too good to be true offers. They would realize when they did already lose up money.

It's not that simple like you said, holding BTC isn't an easy task to do especially if you have big capital in Bitcoin and need to exchange them quickly because any reason.

Not all of them are scam, genesis-mining still legit until now.

It is of recent that I understand how this cloud mining business works and my study review to me that most of them are scams site and 99% of them are not genuine and we really need to be careful before even thinking of investing into them.

Why do you need to berate cloud miners, when there are people pre-ordering Bitmain miners at ridiculous prices and by the time they get shipped the difficulty will be astronomical?

You need to tell those people they are wasting their money on overpriced, power-hungry doorstops!

They only want fast money and fast success yes cloud minng is profitable but before that you need to sacrifice a lot of money to achieve that profit goal,of course it is time consuming and if you stop working on it it became a scam because you fail to maintain your mining rigs and bills to pay. Unfinished contract can benefit the mining company your woking for only them can hold your progress after all you've done.

It is sad. If people just place the money they spent in the cloud mining contract and invested directly in the coin itself they would be much better off. So stop cloud mining and simply buy some btc and hold.

It's a first step. YouTube as well is full of cloud mining shilling, reviews, blatant advertising, etc. It will require YouTube to follow the same pattern as Facebook regarding their most recent actions.

Genesis mining is probably the most successful in marketing itself, which has lead to them being able to stay operational for such a long period of time. Cut off their marketing, and they will dry out completely later on.

This however will also affect legitimate services advertising, which is the downside of this. It's impossible that they will try to filter out scams since there is no way to know that up front, unless it's sooo obvious.

People are blinded by the greed that they refused to see the danger ahead, and there are so many people trying to lure them in cloudmining so they can get referral, for a newbie cloudmining offer seems so attractive and they don't understand how does cloudmining work, they are lazy to find out so just put their money in

Most of the time, the main reason that I'm seeing here is that they are greedy as hell where they are being blinded by the "easy" profit being presented to them by these cloud mining sites. They think that these mining sites will easily provide them passive income as long as they provide sum amount of money to them. They don't even do proper research about it and what is the true meaning of mining is. As dumb as you may think, many people are still being victimized by these scams numerous times. They just don't learn their lesson.

What's hard to understand for them? It's this: Easy money doesn't exist. <-- they can't understand this. Also they can't understand why will someone buy rigs and mine for you while he/she or them can do it for theirselves.
People they get more and stable profit from claudmining than you. You buy hashes (buy some part of equipment), owner pays some part too, gives you very low profit and lies you with the words that they take care of equipment and you just have to forget that noisy sound of miners.
A lot of lies to just attract you. And you think: Wow, they buy equipment and mine for me, what have I found, I am genius and start buying of sillyness.
That's reality....

It'll be interesting to see what effect this Facebook ban has on how many offers there are out there.

If we approach with the mind set of a complete newcomer it's more understandable that they fall for this stuff. The first question many people ask on arrival is how they can mine it on their 1982 Atari.

When that idea gets laughed out of town then they're likely to spot one of those ads. Hey, it's still mining. Hey, they do it for you. Hey, there's a profit too. It's depressing how few devote a few seconds to googling but that their lookout.

It's a very attractive idea to the gullible which is why it's still a thing after all this time.

These kind of person doesnt really value their money at all where they do carelessly invest into things which they saw they can able to make profits without doing much hard work.They do already saw the results and the things do happen and the convenience that it gives without even minding the risk involve if this business is sustainable or not.Realization would happen if they do already facing consequences.

Investing in HYIP[High Yield Investment Programme] and Cloud mining in most cases by impatient and less researchable Newbees and also greed for quick high rate of interest or ROI often lead to their being scammed. I am of the view that warnings on this must be adequately given to these New bloods as soon as they are coming up to the forum , or this shall be part of guiding rules and regulations towards their successful membership.

I think its more of a greed or naive, I always see people who defend a cloud mining site by simply saying " It pays me and I'm making profit, there's no way it is a scam"
Well, duh, that's how ponzi works. When the site collapses they would say a bunch of profanity launched towards the devs, who at this point has ran away with their money

Best we can do is to warn people when there's a new ponzi site came out, whether they want to listen to us or not is their problem, we already did out best to warn people out of it.

To me the answer is simple.
Many people dont like to research and find out the answer.
They will believe anything, and if someone promises them x-profit its a nobrainer for them to "invest" their money.

Theres no need to impose percentage to be blamed off which I do believe devs would really have that 100%. If there were no creators then there would be no initiators and also the one who do initiate is always been part of the team.Talking about on arresting them then there would be only slim chances but yet theres still possibility depending on the traces been left by those scammers. This cycle would really continue no matter what as long there are noobs who do invest on these things.

Deceptions by good dictators always capture the interest of listeners especially if the listeners are either greedy or illiterate to understand and review about the specific cloud mining site. They could not learn unless they have tried it. losing is learning and more complains come out and does appear everywhere that this and those are scams. Initiators of this kind of Ponzi scheme should be blame 70% and 30% for devs. I think FBI should focus in this kind of issue too.

Indeed, the biggest problem with cloud mining whether they are really honest regarding all the things that going on in their mining facility.
In this case, let's take a look at Ice Rock Mining cloud mining, it fits perfectly with what you have mentioned.
I'm one of the investors on ICO 1 that last from September 25th - October 1st, 2017 and have promised their investor will get bitcoin mining contract on December 20th, 2017. But, there are many investors that didn't get bitcoin mining contract until today because they just bought 20 S9. So, IRM devs have promised (again) for investors will get bitcoin mining contract in March. The problem is; IRM devs are running 2nd ICO, create a new system (site) for 2nd wave of investors but there is no any site where first investors can register to see the hashrate, even they send eth and ltc payments manually which they have promised to create a site for automatic payment system on December 20th, 2017.

When it comes to money people could be very blind, thinking only about profit and not considering consequences. But they often forget there is no easy money and no such thing as free lunch.
Despite all warnings and bad experiences people still don't want to beleive they could be easily scamed on cloud mining. But I guess the greed is stronger than common sense.

The thing here on is that not all of those so-called cloud mining sites or people do tend to announce that they do cloud mine which they have the apparatus or the miners in doing such thing which means they are just pretending that they do farm or mine. We know here on online world we can easily announce such things because its not simple to see or prove it.Scammers do see cloud mining becoming a trend which they do took this idea on scamming people. Talking back on legit ones that they are business after all and they wont operate such thing if they wont able to generate profits.

Because the feel of easy money is making them blind. Mining with special equipment asks for investment and cloud mining are going to give you coins without any investment. Such things attract people, but I really count it as wasting of time and cheating. Cloud mining to me is something like a faucet in this point and I do not recommend to any one to join it.

The reality is, people are too focused on the positives offered by cloud mining service providers. While they say when the promotion is very different from what happens when the promotion is complete.

Average cloud mining says it will start mining process 3 months after the purchase of hash rate, and some even more. Whereas in 3 - 4 months mining, they can buy more mining tools that they buy with investors money. It should not hurt them to give a lifetime profit facility if it did happen.

Those members are too greedy to earn quick profit and also lack of knowledge about investment it will lead them to be scammed.

The main reason is not all people can provide their own mining rigs that is why they take the risk of investing in cloud mining even other knows what will happen in the long run.

Since start i do not recommend cloud mining to all investors but its hard to stop them because when they see good offer they will easily attracted and taking advantage for that amount of profit without knowledge that is one way by the developer of cloud mining to trap more investor.

Pretty much. It's the same logic that people had with bitconnect who eventually lost the majority of their investment. Cloud mining is seen like a way to passive income, and honestly, who doesn't want passive income and when we were newbies we would have all searched for ways for earning money at home, risk free.

So in a sense, yes, it is the greed that is gripping the investors.

Keep in mind, we're talking about cloud mining that does not have a verified fleet of miners. Genesis mining is different, you have a chance of making money but it's not that big. The reason why a lot of people even make money from genesis is through its affiliate program, and anything that has an affiliate program should be treated cautiously.

I don't even think you could consider it too convining, cause they're not really doing much to prove anything. I just think it's peoples greed and ambition to prove that they're going to be the ones to make it and they couldn't be someone who would get scammed. People always want to think that they couldn't be the one who would get scammed, it's like anything else when it comes to greed.

Plus once these people are invested in cloud mining they want to get other people in so they ensure that they're able to keep the scam going JUST long enough so that they're paid as well.

I think that what you're missing is the fact that Genesis Mining contracts will not actually last lifetime. As soon as your incoming profits are lower than the maintenance fees that you're supposed to pay, then you're pretty much done for. Plus, you never know where they get their daily payout figures from. They could be making it up for all we know.

I purchased the bare minimum a year and a half back. I think it was 50 GH/s which definitely is minuscule now but still cost me around 0.05 BTC to purchase it. I probably only made around 0.02 - 0.03 BTC of it back before it got terminated. Of course, it could have been the fact that the halving affected the profitability of mining a lot, but the price rose as well at the time.

Bottom line I think is, cloud mining that is actually "mining" will probably not make you more than holding your bitcoins in a bull market like last year, and there is always a risk of not making ROI. Sure, there are some people saying that it's a scam without any basis, but there are legitimate complaints.

I don't recommend hashflare as well, but for people who want to give it a shot, go ahead.
The same thing applied to genesis mining, do your own diligence to check and calculate how much to invest and how long it takes to reach ROI, as bitcoin difficulty increase over time if bitcoin price doesn't increase, you are at loss.

Correct me, if I'm wrong.
1. As far as I know, genesis mining is a lifetime bitcoin contract (not altcoins). So, if you have enough hashrate (more than difficulty, that will generate bitcoin) even though it takes a long time, you will get the ROI. in your case, I don't know how much hashrate that you have.

2. Correlated to the first point, if you invest a small amount of money, it's not worth due to the difficulty and maintenance fees: $0.00028/GH/s per day. Let's calculate if you have $179 for 1000 GH/s > maintenance fee = $0.28/day
According to coinwarz, 1000 GH/s may generate BTC0.002898/month * $11,694 (bitcoin price) = $33.89/month.
It takes 30 months to reach ROI, as I said, it's not worth. But, it will be different if bitcoin price increase to $20,000, it takes 18 months to reach ROI.

Another calculation if you invest $3975 for 25,000 GH/s, maintenance fee = $7/day
25,000 GH/s can generate $865/month or $10,524 annually. You can get ROI in 5 months.
I can say: it's different if you invest a small amount of money or if you invest a big amount of money to get decent hashrate.
You may share your experience in genesis mining, how much hashrate that you have? How much money that you've invested, and so on, if you don't mind to.

You make good points. A lot of these people have never invested in cloud mining but just ride off other people's opinions and never formulate their own. But I have invested in Genesis and I can tell you that it ended with around a 30-40% loss. Of course, right now could be different as price of bitcoin has been skyrocketing. But I doubt the people who invested in genesis mining contracts with bitcoin at $20k is making a lot either.

As with hashflare, even though I don't have any experience with investing in it, I'm pretty sure that nobody is really satisfied with it let alone profits. You've got the management being a joke, reducing contracts from lifetime to 1 year and then temporarily increasing min. withdraw to 0.2 BTC.

It's true that Genesis Mining is a legit site, but you're probably not going to make a longstanding income from it. But people for the sake of their ref links spread the exact opposite of that.

Logically, nobody should be falling for this but realistically, the promoters of these cloud mining sites are just too convincing for newbies. Most experienced bitcoiners won't even look at any advertisement that has the words cloud mining in it.

People think that they can make a passive income from cloud mining, build their portfolio with "strategies" that are drawn up by random nobodies on microsoft excel. In reality it's never that easy, you have to earn your income. There is just no way that you're going to get the promised profits on your investment without the site being a ponzi or bitcoin price going up many times in a year.

Look, to all newbies out there, cloud mining is only consistently profitable for the website, not you. Otherwise, why are they offering this at all??

There are only two reasons I can think of, that is making people blind from seeing the obvious scam.
*Knowledge
*Greed

Knowledge is for the beginners who want to earn cryptocurrencies but lack knowledge and get easily scammed by the cloud mining sites.

Greed is again for the beginners and for the others who want to earn more money in a short time. People should understand that there is no shortcut to money. Its an obvious scam.

I want to quote all of the posts above but some of it is enough to describe the perspective of some people about the cloud mining.
is it true?
Greed, lack of knowledge, stupidity, have no experience, etc.
it may be right in some cases (fake cloud mining).
But, if you ask; have you ever invested in genesis mining or hashflare?
The answer is NO, they have not.
They just read other people comment about how terrible cloud mining is, not get paid, payment delayed, etc.

But, I can say: genesis mining quite fair and it's paying people for their hashrate.
It's not me, but some of my friends, I have asked them about genesis mining and the answer: it's paying and profitable. I don't know about hashflare though.

One thing to note: every investment has a risk, whether you will get profit or lose the funds, in this case; just put some money that you are willing to lose. But don't invest blindly without doing some research about the investment and asks some investors, not just ask "commentators" who never invest.

Due to the desperation of acquiring double profits in a short term. For those who just enter the investment is easier to rely on what can afford accessible money faster than what offers less percentage or long-term gain. That is why many fall into debt, scams and endless forms of theft.

First newbies hears about a profitable currency called Bitcoin, then they search about it on Google and join some Facebook groups and there they find several referral links of legit cloud minings and people saying it's the future's business, it's an easy way to produce passive income. So the newbie connect the points and start dreaming about this, especially after calculating ROI on cloud mining sites (these calculations are wrong and use today's rates as it would last for months or years). The point is that the cloud mining owners and the referrers omit the fact that the income decreases each new day.

In some cases show proofs that the ROI was achieved, but in Dollars and never in BTCs... It's profit anyway, good, but it could be much better if you had bought Bitcoins instead of mining it on the cloud.

I just don't think it's newbie's greed, they see the opportunity to have a legit passive income, so they go for it. Their only fault is to not investigate this kind of investment better.

People want to fool others so that they get referrals.

Even today also I have seen many scam created a thread to spread their ponzi cloud mining projects. Mostly people get caught in these kind of projects are newbies who is not much about the crypto currency as well.
You have mentioned sites like genesis paying properly to people whoever invested on the contracts and hash power. Still many people reported about them in the same section you have written, so none of them are good in cloud mining. Better we can buy the video cards are create our own mining rig.

it is because these companies don't tell you "we are gonna scam you, ha ha ha"! instead they are giving you all kinds of promise and showing all kinds of security and give you a lot of assurances. on top of it there are numbers showing "profit" and when people want to believe something, ofttimes they do believe it.

and in the end they are mining BITCOIN. this thing they don't even understand and only see the 20x rise in 1 year stat and think about getting rich by getting paid 1 satoshi per day...

Many newbies begin with cloudmining, because they simply don't know, where to buy cryptocurrencies as I experienced. They see ads on emails, websites and also contracts on a popular online auctions platform.
It is often more difficult for a noob to find an exchanger, where they can buy Bitcoin without need for a long and difficult verification process or to find a fair seller.
So for them it seems much easier to just buy a contract on cloudminer
Citizens of some countries like Austria are lucky to have Bitcoin ATM, so it is easy to buy Bitcoin.
Fortunately there are a few legit and trustable exchangers, which I can recommend them and also great sources here on bitcointalk for getting them intodruced into the basics of cryptocurrencies.

I think it's too simplistic to put this down to greed, ignorance, laziness, etc. though I too believe that it is usually a mixture of all these. As h0lybyte says, we've got to remember that understanding how Bitcoin itself works represents a steep learning curve, never mind the complexity of how mining works. I am meeting and talking to people who've only just started using Bitcoin and the world of online hyip schemes, doublers, "cloud mining" is very new to them.

Take this for context. They've just read the news of how Bitcoin made 1,000% gains in a year (if they entered in December, this would have been twice that!). So a cloud mining scheme that promises to return 100% profit in little under a year actually makes sense. A disguised hyip Bitcoin scheme that makes them 5% a month also seems to make sense. They cannot distinguish how, they can only correlate numbers.

Now if you did basic research on cloud mining, you get Google showing you some of these legitimate companies... Genesis, hashflare. Even surfing to bitcoin.com (which newbie wouldn't, right?) and you get shown an offer to participate in cloud mining for profit.

Not saying users shouldn't shoulder the blame. But we can always expect newcomers to fall for these early on. And as TETTICEO points out, we might have legitimate users curious to mine but can't access the tech or expertise needed. Cloud mining seems like a good start for them to enter the business - especially when it's recommended as an option by "reputable" sources (such as Bitcoin.com. I quote from them: "Cloud Mining. Start mining immediately with our cloud mining contracts! 100% guaranteed uptime."

Sometimes people just decide that they have to do something the same way some other people do it and be expecting different result. Its an outright a foolish decision but its because of the normal nature of humans to be greedy by putting small amount and expecting some maximum return without having to do anything at all. So, the cloud miners will continue to have their ways, newbies will continue to flood the market and until when they are bitten, they don't learn.

Greed is an important factor as described by above posters, but what really makes people look to get involved in cloud mining, is the hunger for a passive income based revenue stream.

It's in people's nature to try and obtain income that doesn't require any effort, and also because of the fact that basically everyone can do it since it doesn't require proper understanding of what cloud mining is.

From that perspective I can actually understand people, but it's their stupidity to achieve passive income without doing research or paying attention to how bad the overall profitability of cloud mining is that makes them look bad.

How much of a brainless person can you be when you ignore all red flags?  

This is really hard for me to understand either. Is it greed, misinformation, laziness, all three? I think that some people are not willing to do research. Perhaps high returns from crypto are suppressing common sense and newbies think it's also relative to mining.

On top of that, stupidity? It's maybe off-topic but look what's happening with BitconnectX ICO. People know it's the same team as Bitconnect, they don't even hide it. There is a thread on this forum where veterans are trying to explain to new users that this is a scam and still, so many post are saying they will invest.

We have had so many examples of cloud mining scam and people are still joining it. I don't think it will ever die.

For a lot of people who have never mined to made rigs, mining coins is a bit technical. They realise that the best way is to mine but then the profit depends on electricity cost, the mining pool and the hardware. To avoid all this hassle people start looking to buy into cloud mining. The part they fail to understand that  their return is lower than if they handled all the mining themselves.
Also, People are always looking for others to do the tech stuff so they don't have to deal with it. May be in their minds they compare it to email hosting

All the tech guys I know do their own mining. In my opinion, Its only the people who don't understand crypto well go after Cloud Mining. (correct me if I am wrong)

well have you seen how many options there are to increase your bitcoin? there are many options but many of these options are complicated and because these options are complicated people choose the easiest options, such as cloud mining.

cloud mining is telling people the following: deposit 0.02btc that you will receive forever and payments are made every day for your wallet. Dude, this solve many problems and still you earn bitcoins every day... is perfect. this is what many people think! years ago I thought so. with the passage of time you realize that this is not benefit, on the contrary is bad business. It's no use saying "cloud mining sites are ponzi scheme". People will not listen, unfortunately.

Lack of knowledge and everything that they are searching out is all about profiting in cryptocurrency or mainly with bitcoin.

As the popularity of bitcoin starts to pop the entire world, they starting to search what bitcoin really is and how to earn it. And the result is they ending up reading beginners guide and the first on the list of earning is through mining.

They are not aware that cloud mining is different from the real one so they end up being a victim and investing to these scams.

True!

Well, not only newbies anybody who is in a state of mind filled with greed and hunger for more and more money would fall for unrealistic, quixotic and starry-eyed schemes and what not. No one wishes to do due diligence, they just see the offers the websites are "willing" to provide to their very good and loyal customers and they fall for it and later they come whining and bitching about it. People use internet as a medium to get scammed instead of learning something new and something that would benefit them. Two types of decisions that people make that either ruin them or build them up. 

These fake schemes are not really easy to understand for newbies, they actually have no experience realistically in such bitcoin dubler, cloud mining and some more similar fake offers. Rather than investing in legitimate companies, they prefer to earn profits overnight without researching whether it is give them return or not. People realize only when once they lose their money and time following fake doubler schemes

It's quite obvious, greed. People who simply want to earn some quick bucks without any effort fall for these scams, cloud mining, HYIP, Bitcoin generator, doubler. They do know they are investing into a scam, but still  believe they would be lucky enough to double/ROI their investment and in the process drag other people into the scam, referrals. No need to own any equipment, making money on the cloud, that's the lure, simple common sense is more than enough to grasp why would someone lend their hardware when they are making enough profit.

Apart from greed, newbies fall for cloud mining scams, they don't do any research, someone recommends and they blindly accept it. There are a couple of posts every week on this section, newbies asking whether this cloud mining is legit/profitable, they simply want yes or no, rather than researching or understanding how the cloud mining model works.

I fail to understand how it's hard to notice that people aren't just going to give you access to their rigs and ASIC miners and pay you profit from it (without it being a scam) or that these lifetimes contracts are actually going to lead to profits, as companies like gensis mining are only going to pay out if its PROFITABLE FOR THEM AS WELL.

What's so hard to understand here and why are people, joining into this cloud mining scam?