Scam alert : Do NOT INVEST in Genesis Mining

[Vashek]

On Twitter 1 hour ago: Due to technical difficulties our website front-end is still in maintenance mode. We'll be back shortly.

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[Vashek]

Genesis Mining is back online

[radseto]

come on, cloud mining is noting but sh*t.
if anyone will find a way to make more money than the renting cost he will do it alone.

[Ripped Off]

Last month, August 15, I bought 100 TH's Bitcoin Hashpower for $13,000.  The contract time for purchase expired with only 3 conformations.  I've logged in and emailed Genesis-Mining twice since the 15th concerning the expired purchase but have not received a reply or acknowledgement of my purchase or refund in my account with them.

I did receive acknowledgement from the person I used to get a 3% discount that said:

"We received your (my) form and the information match with a recent order that went through.  However since this was an order of more than 50 TH/s we will need to get the invoice issued by Genesis Mining."

I noticed today that Genesis-Mining no longer offers Bitcoin Hashpower for sale.  It appears to me that they've pocketed my funds and left me out in the cold. 

Any suggestions on how I can get a response and refund from Genesis-Mining? 

[perico2]

Currently it's profitable for 1 TH/s you pay 0.28$/day in fees but you mine at current prices and difficulty 1.26$/day. This is equivalent to a 22% pool fee.

Revenue in one year you would make about 0.08 BTC at current difficulty and price, if difficulty doubles, wich will do and price too you would make about 0.04-0.06 BTC.

To buy 1 TH/s from GM you would invest like 150$ (small contracts) or more like 130$ (big contracts) so at current prices: 0,035 BTC/TH/s

Return (supose contract discontinued after 1 year):

- Scenary cataclistic: You generate only half bitcions that invested because mining is discontinued before end of year: (0,017BTC/0,035BTC) -1 = -61% in bitcoins

- Scenary pesimist (high diff/price): return = (0,04BTC/0,035BTC) -1 = 14% in bitcoins.

- Scenary optimist (low increase in diff/price):  return = (0,06BTC/0,035BTC) -1 = 71% in bitcoins.

Assume equal probability of 3 scenarios the spected return in bitcoins: 8% in bitcoins.

Not bad you are buying bitcoins at 8% discount.

Reinvesting can change everithing because you go reducing your mean adquisition cost...

[c-none]

Cloud mining is always a risky business.

Keeping currencies in offline wallet is better. Buy and forget if you want to join cloud mining.

Do not expect a magic band from GM or another brand...

[SyGambler]

504 Bad Gateway since 5 hours....
Let's hope they don't play hashocean with us :/

speaking of hashocean , genesis mining won't close like hashocean cause hashocean was a pure ponzi and you were able to ROI in like 7 months as I remember
but in genesis you will never ROI , so they are making tons of money from their customers and the only losers are customers that have no referrals at genesis mining

they won't close cause they are making a lot of money , but that doesn't make them a good site to invest in

[c-none]

504 Bad Gateway since 5 hours....
Let's hope they don't play hashocean with us :/

speaking of hashocean , genesis mining won't close like hashocean cause hashocean was a pure ponzi and you were able to ROI in like 7 months as I remember
but in genesis you will never ROI , so they are making tons of money from their customers and the only losers are customers that have no referrals at genesis mining

they won't close cause they are making a lot of money , but that doesn't make them a good site to invest in

So if the business runs on referrals, isn't it a kinda ponzi?

No referrals, no earning.

[LongwayUp]

I'm hoping we will get another update from BTCDream

[gobi77]

It has nearly been a month and still no payment from them.

[LongwayUp]

@gobi77 how much did you invest and what did you expect in return?

[phreeksta]

I invested in this one also in the past. I wouldn't call it necessarily a scam ... I get my regularly payouts ...but it seems less, then expected (so maybe a "half scam"). One thing is for sure... it is a horrible investment .. if you invest, you will loose money, that is for sure.

[SyGambler]

504 Bad Gateway since 5 hours....
Let's hope they don't play hashocean with us :/

speaking of hashocean , genesis mining won't close like hashocean cause hashocean was a pure ponzi and you were able to ROI in like 7 months as I remember
but in genesis you will never ROI , so they are making tons of money from their customers and the only losers are customers that have no referrals at genesis mining

they won't close cause they are making a lot of money , but that doesn't make them a good site to invest in

So if the business runs on referrals, isn't it a kinda ponzi?

No referrals, no earning.

not sure if we can call it a ponzi , it's not like that their whole system depends on new sales
the catch is that their contracts and fees aren't good , so it's almost impossible to even break even in genesis-mining ( speaking for crypto rates not USD )
so people who promote the site have a huge benefit since they are getting free hashes without investing money , that's why you don't see affiliate complain

but for normal users I wouldn't recommend investing a penny in GM

[favdesu]

504 Bad Gateway since 5 hours....
Let's hope they don't play hashocean with us :/

speaking of hashocean , genesis mining won't close like hashocean cause hashocean was a pure ponzi and you were able to ROI in like 7 months as I remember
but in genesis you will never ROI , so they are making tons of money from their customers and the only losers are customers that have no referrals at genesis mining

they won't close cause they are making a lot of money , but that doesn't make them a good site to invest in

So if the business runs on referrals, isn't it a kinda ponzi?

No referrals, no earning.

that's the prime definition of ponzi. a product that can't stay alive without more money/people flowing in

[Aventhe]

Cloud mining is there for a reason - only to make profit. Genesis isn't that stupid to 'lease' their equipment and mining hash rates to you for a cheaper price than they would be able to make. The money they make off you will forever be more than you will ever make through any profit. If they want to make a change, they will do just that through their terms and conditions. If you want to mine bitcoins, do it yourself - don't ever count or invest in an online cloud mining service.

[Glucose]

A good reddit post about Genesis Mining's scam :

https://www.reddit.com/r/Bitcoin/comments/5tz011/guys_please_read_this_before_investing_your_money/

Just a reminder : Feel free to give them a negative feedback

[xaxistech]

I dont know why people is still investing into cloudmining sites, dont you know that sooner or later they will run out with all your money?
i dont remember the name of one of those websites that was only until it went to scam, i think it closed on 2015-2016 but it was so popular.
It looks like people dont learn from the mistakes, i dont know but some people really like to lose their money... Everyday y login here i see people "suggesting" people to join cloudmining to earn profits..

[peter0425]

I dont know why people is still investing into cloudmining sites, dont you know that sooner or later they will run out with all your money?
i dont remember the name of one of those websites that was only until it went to scam, i think it closed on 2015-2016 but it was so popular.
It looks like people dont learn from the mistakes, i dont know but some people really like to lose their money... Everyday y login here i see people "suggesting" people to join cloudmining to earn profits..

Because people are stupid enough not to check on where should they put their money. From the very beginning, I suspected that cloudmining is really a scam and I've seen a lot of warnings from fellow members here. But lo and behold, people still fall for this trap and later on cry on the forum because they have been scam by this and that. If they just listen and make their own research before investing into cloudmining like Genesis, this place would be better. But, they only look at the future and counting how much they gonna profit but end up losing.

You referring to this? https://bitcointalk.org/index.php?topic=843417.0

[bitch_coin]

I "invested" with Genesis and have started receiving payouts. It may or may not break even. But I did it with the right expectations.

It's unfair to call it a scam if you can't prove that there was any fraud. It will likely just be a poor investment. At least from what I see, this is the most transparent company out there, and is the "least worst" one in my opinion.

People buying these contracts should be aware that they are essentially gambling and not investing. Cryptos by nature are not true investments - they're not generating actual wealth or productivity, you're just relying on continued demand for the currency to outstrip supply. On top of that you are making a bet about getting paid more than par value on a unsecured loan.

[phreeksta]

I "invested" with Genesis and have started receiving payouts. It may or may not break even. But I did it with the right expectations.

It's unfair to call it a scam if you can't prove that there was any fraud. It will likely just be a poor investment. At least from what I see, this is the most transparent company out there, and is the "least worst" one in my opinion.

People buying these contracts should be aware that they are essentially gambling and not investing. Cryptos by nature are not true investments - they're not generating actual wealth or productivity, you're just relying on continued demand for the currency to outstrip supply. On top of that you are making a bet about getting paid more than par value on a unsecured loan.

Selling a service that, only with a lot of luck, will give you eventually your invested money back after some years ... is scammy. Besides, I think they don't give you the whole actual mined coins. Of course I don't have any proof for that, but the payouts were always a good amount less, then I expected. The reason for that could be not an optimal configuration, or they just keep x % from the mined coins from themselves. Since it is a mining company that should have enough knowledge, how to get the best out of their hardware, I suppose it is the 2nd reason.

Yes, maybe it is not a scam. The subject title is still true - Do NOT INVEST in Genesis Mining. Like you said... it is just a poor investment.