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morantis (OP)
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November 20, 2015, 05:16:00 AM |
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I saw an older post about someone wanting to start their own cloud mining site and wanted to offer an alternative to those thinking about this. The fact is that it is pretty easy to open a fake site that sells gh/s. It maintains a basic ponzi structure and therefore runs out of steam at some point. This may be another way to accomplish the same goals and actually provide some stability.
The coding should be pretty simple.
The idea is simple, sell another sites cloud mining. While this has a level of dishonesty to it, it is better than just taking people's coins for nothing. You find a site that has a good price and a good history. One that has a straight forward pricing scheme that does not vary. Also, have a backup site. You structure your site to charge just a little bit more for the same GH/s.
Here are some keys to a lasting business in bitcoin cloud mining in this way.
1. Do not lie. You do not have to advertise the fact that you are essentially a third party cloud mining service, but put it in your terms and conditions. Also, you may want to contact the site owner of the site you are selling for and get their permission.
2. Have a minimum payout. All kinds of bitcoin sites use this technique. It takes advantage of those with no persistence. Someone comes along and buys a little bit of mining power. A week later they do not see a huge payout so they give up. They try to take out their coins and are below the minimum. That means they either wait, invest more or walk away. Most walk away.
3. Do not steal from your clients. A casino will only keep around 3% of each dollar. If you are charging 3% more for your mining than the site where the mining is taking place, then the 3% is yours and no more. If you are not making enough money, advertise, work at it, do what you need to do.
4. Stay the Course. If you are not prepared to work your site for five years before giving up, then give up now. That means five years of paying server fees, checking the site, paying out bitcoins, answering emails and calls, and if it is the case LOSING MONEY.
5. Lastly, have a professional around somewhere. You do not have to have an IT guy, but know how to get one on the line quick. A single minute of down site time can mean hundreds of dollars.
I will add to this and expand if anyone cares. I know that this is not an honest approach to the concept, but the fact is that a lot of people start a completely fake cloud mining site with the intention of making money and even paying money out. Those people do not have what it takes to start any real cloud mining. Maybe, this will be something they can handle without ripping people off along the way.
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There are several different types of Bitcoin clients. The most secure are full nodes like Bitcoin Core, which will follow the rules of the network no matter what miners do. Even if every miner decided to create 1000 bitcoins per block, full nodes would stick to the rules and reject those blocks.
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Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
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RaginglikeaBoss
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November 20, 2015, 07:58:44 AM |
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Not to be rude, but please do not expand. This is an already played-out Ponzi technique.
It's like paying a credit card bill with a credit card. Someone has to own up in the end, hence Ponzi-scheme.
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morantis (OP)
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November 20, 2015, 02:27:36 PM |
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Not to be rude, but please do not expand. This is an already played-out Ponzi technique.
It's like paying a credit card bill with a credit card. Someone has to own up in the end, hence Ponzi-scheme.
Ah, the uninformed, you have to love them. Firstly, I said this was a better alternative to a ponzi, not that it was a viable way to do anything. Secondly, by definition, a ponzi pays newcomers with precedes created by previous investors. That is why they are bound to fail, because without new investors, there is no actual liquid. I never said anyone should do this, just putting it there as an alternative. If you are going to say something about it, please do, and by all means it can be positive or negative feedback. Just try to be intelligent in your negative comments. |
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cloverme
Legendary
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Activity: 1512
Merit: 1054
SpacePirate.io
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November 20, 2015, 05:32:06 PM |
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There's already a lot of sites that are doing this (reselling another cloud mining service as your own), you can see a list of them in the service announcement boards. The issue that comes up is when a cloud mining operation shuts down or stops mining (because the price of btc falls below what they can make a profit at - zeus mining, gawminers, etc) and you have no way to pay out on your mining contracts. In fact, I was reselling cloudmining contracts for awhile and was upfront about it with full disclosure. When the cloud mining companies stopped paying out, you're left holding the bag. I did have a reserve and in fact, paid back in full each customer I had (and then some) to ensure no fraud was taking place. I broke even, there's no point in reselling cloud mining contracts, too risky and not profitable.
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eternalgloom
Legendary
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Activity: 1792
Merit: 1283
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November 20, 2015, 05:41:17 PM |
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Do you mean something like Minerfarm?
That's basically a virtual mining game based on the real difficulty & real hardware etc.
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defaultking
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November 20, 2015, 06:09:40 PM |
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Instead of charging more you can charge the same amount or even a little less and just keep a % of the profits. Let's say you sell GH/s for 95% of what other sites are selling it for, but than only hand out 90% of the reward back to your customers.
Schemes like this in my opinion can only last so long. You're not creating any value and are only a little more honorable than most ponzi schemes in my opinion. Instead of spending all that time and effort create a fake cloud mining site why not just create a legit site. You'd make more money and and last a lot longer.
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RaginglikeaBoss
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November 21, 2015, 09:38:21 AM |
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Not to be rude, but please do not expand. This is an already played-out Ponzi technique.
It's like paying a credit card bill with a credit card. Someone has to own up in the end, hence Ponzi-scheme.
Ah, the uninformed, you have to love them. Firstly, I said this was a better alternative to a ponzi, not that it was a viable way to do anything. Secondly, by definition, a ponzi pays newcomers with precedes created by previous investors. That is why they are bound to fail, because without new investors, there is no actual liquid. I never said anyone should do this, just putting it there as an alternative. If you are going to say something about it, please do, and by all means it can be positive or negative feedback. Just try to be intelligent in your negative comments. I do forget this forum is full of the intellectual elite, and none of those poor vapid souls. |
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