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Saturday, October 7, 2017

Characteristics of Cloud Mining Ponzi Scam

The amount of cloudmining that provides investment offers with a promising return makes the layman to bitcoin even more confused. Is it true that mining mining is really a mining or a scam.

The following are the criteria we can use to identify whether cloudmining ituscam / ponzi:

1. No public mining address / no user selectable pool

Hashrate is a calculation of how much power you buy for bitcoin mining.
If a cloudmining company does not allow users to view its hashrate and can not prove that the bitcoin the user receives is the result of the mining itself. Then be sure to SCAM.

2. Lack of support from ASIC vendors (mining tool makers)

Hardware in mining one of them using ASIC miner. This tool will add Hashrate so bitcoin will be generated more.

Vendor mining tools will be happy to point out that the company is cloudmining its customers by making a post or a small ad. This is a free service from any ASIC vendor, in that way the company that has used its services will grow and be interested by those who read the ads / posts, and there is no reason to reject it. If a cloudmining company does not get support from an ASIC vendor, then you should be suspicious of the cloudmining.

3. The absence of relevant images from their hardware and datacenter

Actually images can be engineered. But need to see the review whether they really have the hardware used.

There is no reason not to show the picture, of course, if no one takes the picture. However, it could also be a fake image, and does not prove ownership. Just like the written criteria, then this proves they are cloudmining SCAM / PONZI.

4. Open ended IPO / capital return risk

In addition to the cloudmining operated by ASIC vendors themselves. You will not be able to sell your own hashrate. Cloudmining companies that do not limit the number of sales, or show how much they sell vs. how much they operate, then you should be suspicious with the cloudmining.

5. Referral program and social network

Most PONZI offer a substantial referral fee. In the end member-paying member. The frequent fee from cloud mining is no more than 10%. Can be 1% - 5%. Even a 5% fee is big enough for a really mining mining.

Referral programs, especially those that give 10% of the results ref, it is a very large amount. Cloudmining makes a little profit from its total revenue. And it is not possible to give 10% result of ref if cloudmining is the correct cloudmining. If it offers a referral program and the one given is 10% / more then it is a ponzi scheme.

6. Anonymous operators

The admin is not clear who. Or if he is a company usually fitkif not accompanied by a clear address. A trusted cloud mining is usually the owner or admin of mining is already quite famous in forums or media.

If the cloudmining operator hides its identity with whoisguard, then you should be suspicious of investing your money there. Because if they show it, it could be just a fake ID or false corporate information.

7. Can't exit (stop)

If you can not get your money back (by selling the purchased hashrate). So most of it is a ponzi scheme. Auto invest sometimes happens if you buy cloud mining ponzi. You will also be offered a reinvest with a promising ROI.
Mining bitcoin or other cryptocoin costs almost the same as other businesses. The reasonable ROI for bitcoin mining can be up to 12 months. Especially now after halving day from 25 BTC block reward to 12.5 BTC per blog reward.

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