Is miningunited.com a SCAM, turning .1 bitcoins into .137 for almost free?

[BurtW]

So, what this boils down to is that every few days you borrow, according to your own examples, 300(0.04) about 12 BTC.  Then you pay back the borrowed BTC plus 300(0.02) about 6 BTC in interest on the 12 BTC borrowed.

But you can mine about 6 BTC per day!

So if you just mine for two days you will have the 12 BTC you constanly have to borrow at this ultra high interest rate.

You can then use your own 12 BTC that you just mined and you can close down the web site.  No more customer support, no more having people call you a scammer, etc.  From then on you can then keep the entire 6 BTC per day you mine to reinvest in more equipment or spend on hookers and blow.

What we are doing is not much different than what Btcjam.com does. If you browse through the "investment plans" you will see people giving 5-10%+ returns. We have had emails from people who say what we are doing "is brilliant" and they are developing their own similar site - it seems as if we will be having some competition!

It is different.  According to your "How it works" page you are paying 50% interest so let's call it 5-10% PER DAY in interest, BTCJam loans are 5-10% PER YEAR.

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[MiningUnited]

But you can mine about 6 BTC per day!

So if you just mine for two days you will have the 12 BTC you constanly have to borrow at this ultra high interest rate.

You can then use your own 12 BTC that you just mined and you can close down the web site.  No more customer support, no more having people call you a scammer, etc.  From then on you can then keep the entire 6 BTC per day you mine to reinvest in more equipment or spend on hookers and blow.

We would have never been able to get to this amount it wasn't for our lenders, and you are correct. Our profits could be much higher, but we are still bringing in a generous amount of BitCoin per day. As of right now we have no plans to discontinue our service.

[BurtW]

But you can mine about 6 BTC per day!

So if you just mine for two days you will have the 12 BTC you constanly have to borrow at this ultra high interest rate.

You can then use your own 12 BTC that you just mined and you can close down the web site.  No more customer support, no more having people call you a scammer, etc.  From then on you can then keep the entire 6 BTC per day you mine to reinvest in more equipment or spend on hookers and blow.

We would have never been able to get to this amount it wasn't for our lenders, and you are correct. Our profits could be much higher, but we are still bringing in a generous amount of BitCoin per day. As of right now we have no plans to discontinue our service.

You are just too generous for your own good.  It is your generosity that is getting you in trouble here!

You borrow 75 BTC from 300 customers.

You set aside most of the 75 BTC for safe keeping, just as a nice service I guess.

You actually use/spend only 12 of the 75 BTC.

Then, out the goodness of your heart you pay 6 BTC in interest on the 12 BTC you actually used.

Your mining of 6 BTC a day covers the 12 BTC you spent/used plus the 6 BTC in interest you pay to your customers, plus some profit for yourself.

EDIT:  Sorry, just one more question.  Why not just borrow the 12 BTC you actually need and then cut off at that point?  There really is no need to over borrow.  You could still pay the whole 6 BTC in interest on the 12 BTC you borrow - you would not need to change that.  In fact if you did that you would have plenty of customers to keep your order queue full.  Just cut if off when you reach 12 BTC.

[MiningUnited]

EDIT:  Sorry, just one more question.  Why not just borrow the 12 BTC you actually need and then cut off at that point?  There really is no need to over borrow.  You could still pay the whole 6 BTC in interest on the 12 BTC you borrow - you would not need to change that.  In fact if you did that you would have plenty of customers to keep your order queue full.  Just cut if off when you reach 12 BTC.

Another great question.
We currently are looking into redoing this as we need to prevent single user domination. The point was to provide the service to a lot of people. Another reason for why the fee is so high is to prevent a single user from taking all the spots.

[ashaw596]

Um, as a small bit of proof, you could post a video of you and your mining hardware. Also a phone number, a couple names, an address, and a ton of pictures would help.

[MiningUnited]

Um, as a small bit of proof, you could post a video of you and your mining hardware. Also a phone number, a couple names, an address, and a ton of pictures would help

Adding an entire page on this soon when the site is cleaned up and revised! Also, posting a screen shot of the domain contact information. We did not register the domain but purchased it in April, it already had the privacy on. There must have been a recent buying frenzy for BitCoin related domain names in March/April. We did not think of the name, but saw it on a list of domains for sale and thought it was a good fit. We feel that showing a screenshot along with all this will really help!

[Mitchell]

I have sent 0.05 BTC to MiningUnited on 2-May. Still didn't recieve anything. So I doubt that this isn't real.
Transaction: click

[cp1]

I have sent 0.05 BTC to MiningUnited on 2-May. Still didn't recieve anything. So I doubt that this isn't real.

Transaction: click

It says May 4 on that link.
http://miningunited.com/trans.html  says you're #2288 due on 5/12

[Mitchell]

I have sent 0.05 BTC to MiningUnited on 2-May. Still didn't recieve anything. So I doubt that this isn't real.

Transaction: click

It says May 4 on that link.
http://miningunited.com/trans.html  says you're #2288 due on 5/12

Oh, I see. Well my fault then, thanks dude.

I am sorry for my accusation.

[cp1]

It's cool, I'm pulling for them to be legit.  I did send some coins there and got paid, but as others said that doesn't mean much.  I wish I knew where they were renting nodes for so cheap.

[phrackage]

Is anybody actually able to talk us through how this works, in terms of the amounts invested in hardware, electricity etc and why investment from the outside is needed?

[bitpop]

No

[tysat]

Is anybody actually able to talk us through how this works, in terms of the amounts invested in hardware, electricity etc and why investment from the outside is needed?

No

And that's why it's probably a long con.

[Maged]

We currently are looking into redoing this as we need to prevent single user domination. The point was to provide the service to a lot of people. Another reason for why the fee is so high is to prevent a single user from taking all the spots.

What possible reason could you have for wanting to prevent single user domination? A legitimate company would prefer dealing with a single person, since it is much less work.

The only possible explanation for this is that this is a ponzi scheme. That's it.

[duce3425]

can i use this service while still mining myself

[bitpop]

sure you can

[MiningUnited]

MedUSA, as mentioned, for your review in an earlier post: +0.10 Tip Confirmed: http://blockexplorer.com/t/5hACpyKqCm

What possible reason could you have for wanting to prevent single user domination? A legitimate company would prefer dealing with a single person, since it is much less work.

What's wrong with hard work? Seems to be fading these days.  

[joker_josue]

If this is even a ponzi scheme if it hurts only when the service is over, we do not know when it will happen.

Until that happens, who invest here will win.

And it is silly:
- Invest all the money here, as in all investments
- Investing uncontrolled
- Investing more than it has

Who invests must use the money earned to invest again. From the moment the money is used to invest the money they have won the previous investment ceases to be lost and replaced by profit.

Eg:
Who invests 0.25BTC now, since they are now being made payments, will win 0.0563BTC.
If after only invester 0.05BTC, the money that is invested only what has already won. The loss is zero.

But maybe it's me who is doing wrong accounts.
The biggest issue will be the way of how people invest ... without thinking.

Note: I do not work for Mining United.

[medUSA]

I do not want to fuel this never-ending discussion. This will be my last comment on this issue. But before I say anything else, I must declare that I use MiningUnited services, and may continue to do so. I am a Bitcoin newbie, I am only a junior member on BitcoinTalk with not many posts, and I just received a tip from MiningUnited (Thanks so much by the way) for a not entirely positive comment on Page 10.

I believe it is fruitless to pressure MiningUnited to give more info on his/their identity, detailed business model, mining rig, or the mining payout address. They simply will not give those out. Because others will then know precisely how much they make and will duplicate their business model. If I have a highly profitable working business plan, I would be reluctant to share it either.

Even if they shared all of the above, it would still be impossible to prove that this is not a scam. Sceptics are still going to claim it could be a "long con". The point is, without all this "proof", people are still sending bitcoins to them, keeping the site alive. MiningUnited already has what they needed, so it would be pointless for them to provide any solid evidence of his business or mining rig.

For me, I am not bothered with what mining rig they have, or whether it exists or not, and how much they are really making.  Perhaps I am not being prudent enough. But what is important for me is they pay me back what I sent them with reasonable return to cover the risks involved. That’s why I am unhappy about the drop in returns from my previous packages (details in my previous comment).

I do NOT wish to see other newbies buying packages blindly after reading my comments. I am NOT saying MiningUnited is trustworthy. I understand what seems to be legit from the start could still turn sour in days or weeks without notice.

Each individual perceives risk differently. I myself, just see it just as a better "bet" than buying a bitcoin orb or bitcoin crown, that’s all. So, only send them what you can loose and don’t send them anything if you are doubtful.

[joker_josue]

I agree! ^ ^
Each one should only invest what may consciously risk.