Are Mining Contracts a Scam? Maddoff would be proud!
How many of have experience purchasing a mining contract for either Bitcoin or any other alt coin? After purchasing it, how many of you have felt scammed? I'll bet nearly 100%!
Mining contracts are designed to assure only one thing....profit for the seller of these contracts. A sucker is born every minute! The likelihood of the buyer of these contracts to actually profit is next to zero.
It's a simple case of you paying the mining company $500 for a mining contract and they'll pay you back $100 spread throughout a year. Boom! Simply a scam!
They'll give you a litany of how you won't have to expend capex for GPUs, save on electricity, headache of upkeep of the miners and software upgrades....bull shit! These mining companies are vipers looking for easy profit. A person will upfront maybe $500 for a certain amount of their mining power and realize that getting 0.00001 of that coin deposited on daily basis is nothing but a farse!
DO NOT be suckered into a mining contract! It's a scam worse than what a snake oil salesman offers!
These mining companies should first provide complete transparenecy of their books and mining actions so as to show direct correlation of what they scam in from customers and what they mine to what they pay out. Second, if regulation was needed for anything, it woudl be for these mining contract companies.
So what's the solution? JUST BUY THE COINS OUTRIGHT AND RUN FROM THE MINING CONTRACT SELLERS!!!!!
If this blog post has entertained or helped you to profit, please follow, upvote, resteem and/or consider buying me a beer:
BTC Wallet - 19gHMJc9wi9KkP47wokz8y4cFNgz1kAAUE
ETH Wallet - 0xf83641dbf1a53498eae6d0d568c969790da48a36
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Legal Mumbo Jumbo: This is only my opinion, make of it what you wish.!
Thanky for the valuable insight. For I while I was wondering if I should one buy one of those contracts .Now I'm sure of it .I won't buy them.
Mumbo jumbo fore sure. You need to buy new contracts with the money with the money earned like a miner need to buy new miners to compeet. You are a miner when you buy a contract then you need to act like one to stay in the game not wine about scam when it is actely not. Mining is not somthing fore easy money it is long term investing and you constenly need to bee on your toes. Use multipl providers and use discount when possible. And uppgrade every week or every day. and you will soon bee on the high horse if you dare to stay in the game. The more you make the more you need to uppgrade ( a miner is expanding as much as he can and so do cloud miners need to do to.
I have surveyed tons of mining youtube videos posted by those who purchased mining contracts. Their videos go back two years. From their start points to now, ALL have lost money and many of them did exactly what you say...reinvested the mined coins.
One guy even borrowed money from credit card....nuts!
If mining contracts were that good, then Genesis wouldn't have to put so much into heavy marketing!
that would be impossible, If you forexampel bought 10 terahash 1 year a go and only reinvest when the price is higher then then when you bought your contract. If you would have 100 th/s as your first contract. You would be able to reinvest a small amount everyday( depend on the price) and when the price is higher then when you bought in you reinvests a bigger chunk. Then you are doomed to make money. Why the hell els would people be mining if they can't make money when they expand and earning with mining in general. When you buy a contract you own that power. They earn just fees and you get the mining income. They sell off only a fraction of their equipment. They earn 10X more on the mining then on the site. You say they have lost money. If they cashed out from the earnings before they have the ernings to suport it while still reinvesting yep they lose money. You know If you invest if you cashout you loose potensial profit down the road. If you know how investments work you would know that the loosers in the mining industri is the people that think they have lost when pricese go up and down or difilculty rises and payots get lower. If you need huge cpapital to invest or make money you know it is huge profit potensial.