Cloud Mining Operations are going bust left and right.
Cloud Mining is big business. Since 2012 many businesses claiming to mine bitcoin have opened and closed just as quickly.
Many people would like to mine CryptoCurrency from home but lack the ability to set up their own equipment. Many new investors do not know what a rig or a pool is. Most do not even have a bitcoin wallet other than an online micro-wallet at FaucetHub.io.
You can mine coins using nothing but your own computer but, it is not immediately profitable
What is Cloud Mining
When someone sets up a mining farm and rents out a portion of its power to a customer. It is basically like splitting the cost, they purchase and house the equipment and you along with all of the other renters pay for all of it. Once the coins are mined, pooled and dumped- you all split the profits.
What are they selling
Hash power G/HZ. Your rental contract overs the cost of coin mining equipment, electricity and space required to run the mining operation. Everyone who pays in then splits the profit. It is not a bad plan. If the operation is set up in a location where costs are lower, profits are bigger.
What is hash/hash rate/GHz?
I told my friend I was buying hash power, she thought I meant Hashish, she was confused. I giggle every time I think about that. No, it’s not POT dust, it’s a way of calculating the problem-solving ability and power that your equipment can maintain without crashing. With cloud mining, you are renting power from someone else’s equipment.
Are there known scams?
Several operations have started up and paid out for months before finally folding. Much of the problem came from the surge in price for bitcoin. This caused the systems to become too complicated. The payouts were changing every minute. Can you imagine owing someone a Bitcoin but having to pay them in your currency? At one moment you owe someone $1000 and the next day it’s up to $20,000. That is a huge difference. Now Imagine that you owed 100 people each 1 BTC. Some of these companies just couldn’t keep up with the high bonuses they were paying before because the math just didn’t work anymore.
“Naturally, the field has also filled up with fake mining companies who collect your money, pay out bitcoins until they feel they’ve gotten as many subscribers as they can, and then disappear forever. Before signing up with any cloud mining company, do your homework and confirm that the company is a legitimate one run by a known individual or individuals.Who are the favorites?” – Madison.com
Who offers Cloud Mining?
There are many companies stating that they are offering cloud mining. Some are just sites filled with ads that pay small stipends to its paying members over time but there are no actual mining operations at all.These are more like fake faucets disguised as mining operations. Some are running miners in the background and hijacking your power. You could run coinhive on your own machine much easier than paying a site to run it in the background and then pay you a portion. Coinpot.co will run it for you and so will faucethub. but they will tell you up front and you have to start the mining process on your own. You can run BitDigger.io on Chrome as an extension and earn a few coins but your machine will run very slowly. But, if someone is hijacking your power, it may as well be you.
True cloud mining involves you purchasing a certain amount of power.
If your cloud mining company offers unlimited power, run away. Infinity doesn’ exist in this market. Each coin has a cap. Each rig can only mine so much, eventually, the two would meet. Especially if 100’s of people are mining at the same time and using unlimited amounts of power… whose electric bill or solar panels could handle the load? It’s unreasonable.
There are still a few fan favorites in Cloud Mining for 2018.
I follow network marketing and internet entrepreneurs on Social Media and most of them are trying to build a cloud mining portfolio with very little effort or input. This is because the average person has no free money to invest but wants to get into the game.
Previously, a newbie could sign up to a site called Eobot and after almost a year and a half of collecting your daily free power, you could have enough cryptocurrency to become a top trader. Eobot can generate wallet addresses for each coin that they support, The major coins are all represented and some really interesting altcoins. Many people collect from Doge Faucets and transfer those to Eobot’s secure platform because the transactions are cheaper using Doge.
“Eobot, operational since 2013 and located in the United States, is a real-time exchange allowing trading between Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, Ripple, Dash, Golem, BitShares, CureCoin, NEM, Monero, Zcash, Factom, Bytecoin, STEEM, Lisk, MaidSafeCoin, USD, Gridcoin, and Ethereum Classic. Your funds are always safe due to our Public Audit and Hacker policies! ” – Eobot
The US regulations have made it difficult for Americans but, the rest of the world could still benefit from the Eobot mining strategy, even this late in the game.
Eobot will cease selling cloud mining (also known as GHS) contracts to customers of the USA beginning in 2017.
To All USA Customers: If you are residing in and/or accessing Eobot within the USA, you won’t be able to mine or purchase additional cloud mining. Existing GHS and other other features will continue operating as normal. We regret that we must cease selling cloud mining contracts, but the securities laws and regulations around this particular industry are cloudy and we are taking the safe route to protect our business. – Eobot
It has become more difficult but not at all impossible or improbable to build wealth in cryptocurrency
Although I do not technically recommend cloud mining as a viable option to build wealth, it is a good way to obtain a small amount of Crypto and reinvest into a better performing coin or investment. Please use your coins responsibly.
The top-rated cloud mining companies are as follows:
“Started in 2013, Genesis Mining has grown into the world’s largest cloud-based blockchain and cryptocurrency mining company, used by bitcoin miners the world over.
The company’s cloud-based hardware provides miners access to as much computing power as they’re willing to pay for.” – read more on CNBC
There are hundreds of other cloud mining operations popping up and shutting down daily.
One popular company ViaBtc has just shut down their cloud mining operation in order to differentiate themselves from the underside of the market
“In a Jan. 8 statement, ViaBTC said that it would shut down the market – through which users can purchase contracts entitling them to a certain amount of hashing power (and the associated cryptocurrency payouts) – on Jan. 10. The reason: the company wants to “control speculation and protect the interests of our investors.” – read more at CoinDesk
FFlak Mining A new company has become popular recently but, the reviews are limited and there is not much known yet. If you dare to test it out, Use bonus code LIONPRO to receive an extra +43% hash power. Minimum upgrade 50MH/s
https://hashing24.com/ is a respected site but does not serve united states markets, therefore, I could not view their info.
Is Cloud Mining for you?
If you have read all of the warnings and still decide to invest in cloud mining, just do so with caution. Crypto does have real-world value and all investments are risky
“If you are going to invest in some cloud mining scam, aahhhhm scheme, perhaps it would be better to look for a company that also creates their own miners. This makes it much more probable for them to actually own the mining equipment they are talking about and not just tell you that they do.”
Beyond Cloud Mining
For those who are a little more tech savvy or have their own mining equipment, companies like Nice Hash will purchase your hashing power, rent it out to cloud customers and mine smaller currency then pay you and your renter in bitcoin.
Since NiceHash has come back on board, many home miners are much happier.
If you do have your own equipment, you can start by downloading NiceHash Miner here.
Nice Hash does offer a Cloud Mining type option but, the contracts are different than many of the other operations, which is what sets them apart and keeps them on the recommended list of many crypto cloud miners and home miners. Nice Hash does not fit the cloud mining category because they are both buying and selling power so, they are more of a hashing power brokerage.
In addition to going defunct, Cloud operations are also susceptible to being HACKED
“The cloud mining space is a worrying, potentially scam-filled Hell.” – Motherboard.com
If you decide to invest in a cloud mining operation, you do run the risk of their site being hacked as well. As long as you go into it with the right mentality and understand that you are responsible for taking your own risks.
Never risk your rent money
DO not invest more than you can live with losing.
Do not invest hoping to get rich.
Do not put all of your eggs in one basket
Do your research before signing up for any site
Make small investments at first to test the system
Learn as much as you can about the currency you are trying to mine
If you want to get your hands on your first BTC with the intention of holding or investing with the further intention of watching the coin rise in value, just log on to Cex.io and buy some as you can afford to. You can purchase and withdraw with a visa card
Don’t mine with your head in the clouds. Get as much info as you can. If you have anything to share with myself and others who may be susceptible to being duped by an unscrupulous scammer, leave a comment and warn us off.
Additionally, if you know of a great cloud mining operation, leave your referral link in the comments. If it looks cool, I may sign up under you and do a review.
CloudMining Con Artists
Recently, many of the scammers have been outright disappearing with no trace.
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