Hey @tolkatore! Thanks for sharing Crypto Jedis report about Cloud Mining. I found that the first priority of cloud mining is to find a provider that is not a scam. Furthermore, I absolutely agree with Crypto Jedi, that serious money is required if you expect serious rewards. Get rich quick cloud mining doesn't exist. If a cloud mining provider promises crazy rewards with little invest, the profits are most probably based on referrals and the cloud mining service is a scam. The most important thing of cloud mining is to always go for the Bitcoin profit, not the fiat profit (ROI should be calculated based on Bitcoins). If the amount of Bitcoin spent is higher than the amount earned, money is better spent buying Bitcoins. Another crucial aspect is the fees. I found that some cloud mining providers charge a fixed maintenance fee per TH/s. Since the maintenance fee is defined in fiat currency, the relative amount of fees increases significantly when the price of Bitcoin drops. I saw maintenance fees go from below 10% to over 60%. Thanks again for sharing and keep up the good work!
Cheers -@sblue
You are viewing a single comment's thread from:
Which is exactly where the scam aspect comes in, because a lot of people will argue that just because they don't run away with your money, that it is not a scam, but if you give them a bunch of money, and then wind up breaking even in the end... is that not a scam?
I'd say that it depends. Everone who buys a mining contract or mining hardware should be aware of the risk. There's nothing scammy about the odds not being in your favour when taking such a high risk. Of course, the line blurs if it comes to maintenance fees and when all risk is outsourced to the customer. Having crazy referral programs, empty promises about profit, and selling thin air by lying about having hardware is where I draw the line to call it a real scam.
I respect that, but I will always be an avid believer that buying the coins and tokens themselves is the best option.
I wouldn't disagree with that per se. In most cases, odds are in your favour. I even came to the same conclusion for my situation. Electricity and housing costs are too expensive for me to have my own mining setup. It couldn't compete with the rest of the world. And mining contracts are too risky due to the added overhead of costs, which lowers the profit and strongly couples it to the Bitcoin price. I'd even agree with you to call it a scam when all expenses and risks are outsourced to the customer and the cloud mining provider can walk away with profit (or breaking even). So... No mining for me either 😅
Yeah, the whole thing just never sat well with me, but to each their own I guess.