Bitcoin Forum

You can easily lose your hard-earned money if you plan to invest on the following

1. Cloud mining

The bitter truth is none of these so called cloud mining are real, they have no proof that they own any mining farm or whatsoever and later they will exit scam on you while you least expected, what 99% of them do is running ponzi schemes, paying B with A invested money or coins

2. Gold backed tokens

They always claim they have reserve but there is nothing to show for it, also I believe it's almost too good to be true when a project promised that their tokens can be exchange for real gold, really? Just like that? Tokens are dirty cheap to build, so why change that for gold easily?

Do you know how many real gold companies that exists in the world today? No single one of them tokenized their company assets, it's just our wishes that they are true but mind you be careful what you wish for

There are many use cases in crypto space that's aren't supposed to existed in the first place because they aren't needy at all, it's why many still don't trust USDT and other as big as they are, there is nothing to prove that they actually have a reserve for their stable coin but all we have left is SEC regulation, it's why I trust BUSD too, authority won't let them operate without legalizing the business

This could be changed to; "you could lose your money", rather than remain a newbie as such potential scams are not directly linked to the forum ranks or Bitcoin.
All users in the crypto space should be conscious of scams and take steps to protect themselves.

In my opinion Could mining is never a good investment to begin with cause it was technically created to enrich the owner why the investors money are used to achieve it and also put into certain unreasonable condition.
Even some cloud mining site like Genesis Mining which was said to be legit end up scamming their investors. ,

You make a point here and I have once created a thread before where I did diligent research about crypto related project that claimed to be Gold backed token but lied (https://bitcointalk.org/index.php?topic=5268787.msg54993414#msg54993414) if you know any please list there name so I can do some research about the project. Despite the lies of some precious metal backed project there are still some genuine precious metal back project which give real gold to people in exchange for their token but most previous metal backed project don't do that.

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MCcryptonia, you ought to change this topic as you are advised earlier.

99% or more are scammers, there are like 1% or less that are legit, but the thing is that they are not profitable, it takes long time to earn profit, I have not tried it before because I do not want to lose, but according to what I have heard is that the profit is not constant and the earning will be reducing in a fashion you will not earn like you thought, it is like a deceiving scheme. The remaining ones which are 99% or more are absolutely scam, they are people that will pretend to mine for you but go away with your money and never come back.

Lol, when i saw the topic, it sounded so funny to me because, I've been there with that thought once. It's a very unlikely possibility but luckily, there are ways around it and it's simple.

But then, the issue with believing in either of those constraints of the crypto space have got no ties with forum ranks but, your activities in the forum with regards to discussions have got everything to do with it.

If not for anything, one of the most common reoccurring thing on the crypto space is scam and one who is not aware haven't been really into crypto. So, it would be wise to arm yourself with knowledge on strategies and forms scams assume.

How about AI projects?  ;D when you watched too much SCI-Fi movies you start hoping that the future is going to be a robotic future and cars will start flying like planes, I've seen people lost so much money to AI crypto projects too, I did joined many AI projects airdrop in the past and none ended well, they all turned scam or abandoned

Both of what you said are true but let me add another one with this.

1. Projects that already has a red flags - Lets face the truth. Even though there are projects that already has an obvious red flags on it, there will still be investors who will take the risk and invest into them hoping that they will get profit into it.

In general, "you can easily lose your hard-earned money" if you choose to be an ignorant investor for the rest of your lives. What do I mean by that. An ignorant will be the ones who will get scammed the most since they don't want to learn.  If you don't want to be one of them then as most are saying, do some research first before investing your "hard-earned" money.

You can lose money in every investment. If you purchased bitcoin at $55.000/coin, you would now lose a part of your investment if you were to liquidate your positions.

Regarding your second doubt about gold-backed tokens, I think Digital Gold is a legit project. I have never seen anyone claim the opposite. You can verify their physical gold holdings by entering their account number 17081 on Bullionstar >https://www.bullionstar.com/myaccount/audit. Unless that site is fake or shows wrong data, the project should have what they claim they possess in physical gold.   

Yeah. Beware of scams. Educate yourself. Learn what the risks are for your investment.
Many companies make grand claims about their products or services to draw in users. The likelihood of a company backing up those promises is slim. Before you are forced to part with your money, you want to make sure your funds are safe.

All you mentioned are the one of the most avoidable scams since many of them offers some good rates to their investors and use such mining things and gold backed coins to make their project looks good to the outlook of investors. New users here should avoid these especially if they offer any to good to be true profit.

This applies to almost all coins which claim to be backed by fiat or some other assets. None of them provided enough proofs to confirm this claims.
There many other fraudulent schemes that can cause you to lose money such as doublers, ponzies... Some are more sophisticated than the others and are harder to detect.
The golden rule is to use common sense and DYOR before investing in any project.

Almost 98% of the cloud mining companies had turned out to be scam collecting money from their clients, there were numerous cloud mining offering huge percentage to customers during 2017 period, don't really know if they still  in existence till today. To me any so called company that promise to pay huge percentage shouldn't be dealt with, they may be liable to be scam companies/Ponzi scheme using using investor A money to pay investor B.

Also, for the gold, haven't you asked yourself, "Is cryptocurrency not profitable than gold? have a comparative study of cryptocurrency and gold investment, and conclude clearer from yourself which is much better, I think the only recognized gold back token is the gold stable coin. Others had been prolly scam projects out there with fake and untrue information.

I absolutely agree with the first point. Almost all cloud mining is just a divorce.
Therefore, I advise beginners to think several times and assess the risks.

Don't give your money to scammers

I agree Cloud mining is a Ponzi scheme and the community have proven that even if a company wants to set up legit cloud mining, it's not sustainable anymore with the current condition, of  Gold-backed token, there is a project that used to be successful in their feature as a gold backed project and this is XAURUM (https://www.coingecko.com/en/coins/xaurum) but it's not profitable anymore from their all-time high of $1,533.96 -100.0% they are now down to $0.022, one of the coins with the biggest losses after the 2017 hype

Scams are quite common with cryptomarket, and we need to stay safe with our learnings. Cloud mining is a big thing thats been promoted, but those aren't effective for various reasons. Rather than spending on cloud mining one can just find the right cryptocurrency and hold for long term.

Well, you might want to click my signature, every token is backed by real gold and you can check the amount of 'physical gold' stored in bullionstar wallet real time. You can't exchange your tokens for real gold tho.

This one is the hardest to spot as a scam especially when you are a newbie to the crypto industry, you will think that this might be the safest and nicest investment you will have in your life. Most of the Cloud mining sites or companies took some years or two to show their real colors. When they first introduce themselves in the first few months they won't delay their payment as if they are pretty good. Most of the time, when their clients witnessed such good behavior from them, they will make countless positive reviews that you might think they really are legit like those people said. You just don't know that they are one of the victims too that will take a few months later before they knew it. To make it short, after they've gathered enough funds from their investors, they just simply disappear without a trace with their investor's funds. You can read more of their evil strategy here: https://news.bitcoin.com/hashocean-cloud-mining-scam/

Not only for gold back up tokens.

But for other projects that are claiming that they're backed up by a real enterprise. Although some of their claims might be real and legitimate, you have to validate each of them if you have the interest in buying them.

It's just a way to secure yourself that you're investing in a legit one.

You can never find one honest cloud mining of anywhere, it's full of scam and ponzi sell out.

Be careful and don't use this kind of things, this is not something related to cloud mining that I had experienced so far but I still feel that some of them are are running such illegal operations.

So the bottom line is that it's not that Cloud mining and Gold backed tokens are the problem, but the fact that providers of these services flat out mislead and lie about how they operate and what they offer as a service. These types of scams are present everywhere, from crypto investments of any kind to online shopping. Maybe some of those options would become viable and legitimate in the future, who knows. But for every legitimate idea, there are 10 bullshit ones.

well there are so many risks it makes me sad and confused

cloud mining is very common and many scammers are hotbed. Many cloud miners run ponzi schemes and also require a deposit to withdraw their income. some do pay but some also commit fraud. Nowadays cloud mining is not that popular anymore. Currently all are switching staking platforms such as Ethereum and the Binance Smart Chain Platform.

This not really different, there are also scammy staking pool with ponzi scheme, since some people doesn't have a lot of coins/token to generate good income, they are join pool. They also need to remember if choosing the wrong service will make them lose their money. Yield Farming also have same issue. Better to choose well known service provider for staking pool than joining in unrealistic offer from new pool.

Doing some research is your first task if you are planning to invest your hard earned money or you can choose to avoid all investment offers that you see. No one is going to force you to invest into something that you don't want to especially if you have no idea what is it all about. Scams are everywhere and you can't avoid it but if you have some knowledge of how scammer people do their job then it's too easy to spot a single one.

The only thing that makes them easy to spot is if they offer a too good to be true results but that's just a lie because they were all good at talking but can't show any results if you ask them. So does a cloud mining too is not what you thought it was only few cloud mining that are legitimate in the past, I don't know if they were still operating today.