Save 3% on your Genesis Mining Order
Use the Promo Code below


Cryptocurrency Cloud Mining

Criteria to help you spot a cloud mining scam/ponzi:

No public bitcoin mining address / no user selectable pool.

When you buy hashing power from a cloud mining company, you should be able to direct the hashing power to a mining pool of your choosing. The cloud mining company should also have a public mining address that proves that they are mining bitcoin on the network, and they should be able to sign blocks to prove they own an address. If they cannot do this, they are very likely a scam.

No endorsement from any asic miner vendor

Legit cloud mining companies have a lot of very expensive hardware and the ASIC vendors who supplied them will gladly make a public post or acknowledgement to show that the company in question is one of their customers. This is free advertising for the ASIC company and the endorsement gives confidence to the cloud mining company so everyone wins. There is no reason why any ASIC vendor would not happily do this and real cloud mining companies usually ask this of them right in the beginning to get off on the right foot. If there is no endorsement, then you can assume that the cloud mining company simply does not have the hardware they protest to have.

No relevant pictures of their mining hardware and datacenter

All legitimate cloud mining companies are able to provide you with details of their datacenter and even pictures of all the bitcoin miners that they have. Some even go so far as to provide proof of their electricity consumption. Although its easy to fake pictures, it should be even easier for a company to walk into their datacenter and record a video of all the equipment running, and take a few pictures to proof its existence.

Open ended IPO / fractional reverse mining risk

The amount of GH you can sell is limited by the amount of mining hardware you have in the datacenter. Getting more hardware in order to sell more GH takes a long time to order, arrive and deploy. Legit mining companies will have limitations on the amount of GH they can sell and will make public how much they have (provably) access to, and how much has been sold. Any company that doesnt limit sales or make public how much hashrate they sold vs what they have deployed should be considered highly suspicious.

Referral programs and social networking for cloud mining

Cloud mining companies that have referral programs, especially those that have other members that join under you are a massive red flag. This is especially true when the cloud mining companies have referral programs that pay almost 10%. The mining market has razor thin margins and no real company can afford to pay 10% referrals on below market cloudmining prices. Referral programs almost always serve only to feed the ponzi scheme and provide financial incentive to posters to lie about the true nature of the company. Cloud mining companies that use this technique are some of the most dangerous out there, BEWARE!!

Anonymous operators of website domain

The owners of the cloud mining website domain should not be anonymous and should provide full contact details when registering the website domain. If the contact details of the domain owner for the cloud mining website are hidden, then you would be crazy to deal with a company that has gone out of its way to make sure it stays anonymous.

No exit strategy from cloud mining website

A decent cloud mining company will allow you to sell your GH and withdraw your money. If the mining website does not allow for the sale or trade of your GH then it is most likely a ponzi and you should stay away.

Cloud mining companies that offer “guaranteed profit”

If any cloud mining website guarantees you a bitcoin denominated profit, especially a 15%+ one, you can be 100% sure it is a ponzi scheme. There is no such thing as certain profit when it comes to bitcoin mining. Nobody knows how the network will evolve or what the BTC price will be tomorrow, let alone in months time.

Official Genesis Mining Promo Code - ukYlRS

%d bloggers like this: