Bitstamp sell ripple
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Ira miller bitcoin stocks
With the crypto industry so new and so -- fortunately -- unregulated, there's plenty of room for scams. Everyone here is focused on ROI, hardly anyone seems to care if these companies are legit. The majority of cloudmining websites dont do any mining whatsoever. They pay out old customers via coinmixers from revenue that comes from recruiting new ones.
This is the common definition of a ponzi scheme. No surprise, to keep the game going they usually heavily emphasize referrals and signature campaigns to make you do their dirty PR work. Now why would you care if these companies are mining or not? All that matters is they pay out, right? If the company or more aptly: Early investors might, but only at the expense of later ones and only if the ponzi can survive long enough. If no mining is going on, then there is nothing to generate those profits.
So dont be fooled by low prices or high payouts. Ponzi miners will drop prices as low they need to keep the game going until one day they vanish. And dont think because its been running for 10 months, that it has to be legit either. Unlike traditional ponzi's, mining ponzi's dont risk a bank run.
You cant get your money out if you begin worrying, so they can run a fairly long time. Take PBmining, they have been around since the beginning of and havent failed to pay so far. Does that prove its not a ponzi? During that same month they paid around BTC in dividends. Just for running a website. So the fact they are still paying out doesnt prove they are legit, its actually far more likely they are still paying out because it maximizes their profits update: Of course that cant last.
At some point the new sales will slow while the owed dividends keep going up. Once the latter becomes bigger than the former, guess what the anonymous operator will do? The same thing lunamine, coinsoncloud, pirate, bitcoin-trader and countless other mining ponzi's before did.
Think before you invest. Dont trust anyone with a referral link in his signature. A cloud mining company that wont let you direct the hashrate to your pool of choosing and cant prove its actually mining bitcoins itself, is very likely a scam. There is no reason to hide mining address or not sign blocks.
Its free advertisement for them and it helps their customer grow their business, so there is absolutely no reason they wouldnt. If a cloud mining company cant get any asic vendor to post such endorsement, you should assume they dont have any hardware to mine with. Picture dont prove current ownership. So like all criteria listed here, by themselves they are by far insufficient proof. Hardware takes usually a long time to order, arrive and deploy. Any company that doesnt limit sales or make public how much hashrate they sold vs what they have provably deployed should be considered suspicious.
The mining market is cut throat with razor thin margins. Referral programs almost always serve only to feed the ponzi and provide financial incentive to posters to lie about the true nature of the company. Never trust anyone with a referral link in their sig. Thats the ideal case for a ponzi and allows it to run for a long time. There is no such thing as certain profit when it comes to mining, no one knows how the network will evolve, or what btc exchange rate will do.
Likely Ponzi scams that have yet to collapse: Based on wider context: A ponzi is defined by the absence of a mechanism to generate revenue or profits in this case: Proving something is a ponzi would therefore require proving a negative.
You can not prove a negative, so in theory its possible any of the companies I labeled as "ponzi" are in fact mining. You can not prove thats not true either, but to most sensible people the complete absence of evidence is a very compelling reason to dismiss the claim, and thus certainly reason enough not to invest there.
Recently imploded cloudmining scams that where rated as very suspicous or ponzi: You can tip me on this address: Here is the current signature campaign thread: By and large, cloud mining has not been profitable historically, and I dont expect it will. I do not recommend you invest in cloud mining at all, but if you do, at least invest in a company that will actually contribute to securing the blockchain and is not extremely likely to just steal your money.
Also, being rated as legit here doesnt guarantee you anything. All it shows is that said company has provided reasonable evidence it is a real company and your investment is backed by actual hashrate.
It doesnt guarantee they wont scam you, and it certainly doesnt imply anything about profitability. I am a robot. I just upvoted you! I found similar content that readers might be interested in: Cloudmining Everyone here is focused on ROI, hardly anyone seems to care if these companies are legit. Application of these criteria to some cloudmining companies Feel free to post corrections or additions.
Ponzi's that have already collapsed as predicted: Success rate so far Recently imploded cloudmining scams that where rated as very suspicous or ponzi: You can help out by reporting new ponzi's and preparing the assessment. Authors get paid when people like you upvote their post.