MinerGate Looks like a Ponzi Scheme to me.

[SM23031997]

Although Everything is good and working fine on their site. You can mine and withdraw coins their but if you are looking to buy some hash power from them then beware. I doubt that they have any Mining farm to mine coins.

According to me what they are doing -

They are providing Hashrate, but there is a term which clearly states that the mining contract will void/canceled if the mining won't able to cover maintenance fee for 3 consecutive days. And the probability of this is very high in future due to rise in difficulty and price fluctuation. So, if someone starts mining with them for a lifetime term he won't able to cross breakeven due to this rule and the company have not to pay him anymore and make a profit on it without mining anything.

If we analyze then on 7 points taken from https://bitcointalk.org/index.php?topic=878387.0

1) No public mining address / no user selectable pool.
2) No endorsement from any ASIC vendor
3) No relevant pictures of their hardware and datacenter
4) Open ended IPO / fractional reverse mining risk
5) Referral programs and social networking
6) Anonymous operators
7) No exit strategy
From My Side
No buying limit on orders.

They fail on 1,2,3,4,6,7 and 8 all these points and that's why I think they are running an obvious Ponzi scheme. They have made with such terms that they can run the Ponzi for years and won't get caught, even they can take an exit without a problem if they want due to their rules. And no one is able to prove anything.

Buying hashpower on Minergate is not recommended until they come up with solid proof of mining operations.
Mining with your equipment like CPU/GPU and others is recommended

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Your Views are Important to me if you think my speculation is wrong please inform me asap.

[DaMut]

to be honest,
not only minergate,all of them who's operating cloud mining were running ponzi scheme.
as far as i know,they did not get profit from their mining service.
but instead from costumer money that bought the contracts.
no matter where you go,when you bought 1 year contract.
in the next 10 months later,your contract will no longer profitable.
they will tell you that the fees and difficulty are high and your contract can not generate anymore.

[nb1985]

Yes, I am sad to say that I will likely lose a decent amount of BTC on a "Lifetime" cloud mining contract. I purchased a cloud mining contract back in August (I got caught up in a fervor and didn't do my due diligence.) While it is still paying out, my earning are decreasing by about .0002/week and, if that stays the case, I will no longer be earning anything 34 weeks from now. I think that I will be lucky if I get even 50% of my initial investment back.....I am currently just trying to figure out how to earn some BTC so that I can at least end up with the same BTC as I started with before getting scammed/wasting my BTC on this cloud hash rate

[hello_good_sir]

This could be possible. The fact that you can buy 80 BTC worth of mining power without having to pre-order or anything is extremely suspicious. Even Genesis mining a lot of the times run out of stock for their miners.

There is simply no mining farm with unlimited amounts of miners, and them being able to seemingly accept such big orders and start mining straightaway is suspicious. Though, terminating a contract before it expires is common practice in the cloud mining business, as long as the profits don't exceed maintenance fees.

[949miner]

There are no legit cloud mining services, i dont know why people keep believing in that lie on every new cloud mining that is online. I remember when i invested in hashocean, i had more than $800 in there, and it was a big loss when they scammed all of us, but i learned the lesson because of that scam, so i have never invested in any ico/cloudmining/or any other ponzi scheme. I only invest in myself, and in my own purposes.

[cafucafucafu]

There are no legit cloud mining services, i dont know why people keep believing in that lie on every new cloud mining that is online. I remember when i invested in hashocean, i had more than $800 in there, and it was a big loss when they scammed all of us, but i learned the lesson because of that scam, so i have never invested in any ico/cloudmining/or any other ponzi scheme. I only invest in myself, and in my own purposes.

There are legit operations like Genesis mining.

However the catch is that you will rarely make back what you invest in it. If it was profitable then why would any company that is sane lease out these contracts instead of just mining themselves all the time? They'll make much more.

So cloud mining is a risky investment at best, scam at worst.

[adzino]

Although Everything is good and working fine on their site. You can mine and withdraw coins their but if you are looking to buy some hash power from them then beware. I doubt that they have any Mining farm to mine coins.

According to me what they are doing -

They are providing Hashrate, but there is a term which clearly states that the mining contract will void/canceled if the mining won't able to cover maintenance fee for 3 consecutive days. And the probability of this is very high in future due to rise in difficulty and price fluctuation. So, if someone starts mining with them for a lifetime term he won't able to cross breakeven due to this rule and the company have not to pay him anymore and make a profit on it without mining anything.

If we analyze then on 7 points taken from https://bitcointalk.org/index.php?topic=878387.0

1) No public mining address / no user selectable pool.
2) No endorsement from any ASIC vendor
3) No relevant pictures of their hardware and datacenter
4) Open ended IPO / fractional reverse mining risk
5) Referral programs and social networking
6) Anonymous operators
7) No exit strategy
From My Side
No buying limit on orders.

They fail on 1,2,3,4,6,7 and 8 all these points and that's why I think they are running an obvious Ponzi scheme. They have made with such terms that they can run the Ponzi for years and won't get caught, even they can take an exit without a problem if they want due to their rules. And no one is able to prove anything.

Buying hashpower on Minergate is not recommended until they come up with solid proof of mining operations.
Mining with your equipment like CPU/GPU and others is recommended

Ref Link
Non Ref Link

Your Views are Important to me if you think my speculation is wrong please inform me asap.

Most (that is more than 99%) of the cloud mining sites are just scam. They run ponzie scheme. Pays users with other users money and once users starts to trust them deposite huge amount of money, they just run away with those.
All the points you mentioned are fishy and they directly spells the word scams. Point 8 is actually what gave them away.

[xypos]

They're a pretty big company but they don't have the best reputation. There is speculation that they are somehow involved with freewallet, and they own changelly which often has complaints written against it.

The cloud mining does look suspicious to me. There seems to be no limit on stock for cloud mining contracts like hashflare/genesis. That means all they want is as much btc as they want and there may not be any actual mining going on.

I would proceed with caution if you are interested in investing in their cloud mining.

[TherapOne]

And Now Minergate service not available :  502 Bad Gateway


 

greetz

[crazyivan]

Classic cloud mining s got no way of reaching ROI anyhow. So I dont see the point even trying with these guys or anyone else. Nobody offers you actual rigs where you can have sufficient time to reach ROI and make some money. It s crypto Wild West.

[reflector]

They're a pretty big company but they don't have the best reputation. There is speculation that they are somehow involved with freewallet, and they own changelly which often has complaints written against it.

The cloud mining does look suspicious to me. There seems to be no limit on stock for cloud mining contracts like hashflare/genesis. That means all they want is as much btc as they want and there may not be any actual mining going on.

I would proceed with caution if you are interested in investing in their cloud mining.

Minergate software shows that smart mining in Monero but nothing works nut nothing works better. I hope that all the cloud mining site are not legit to investors who are getting the hash rate by purchasing it. I noticed even on genesis mining also many complaints. Better to go with the ASIC or GPU mining to make the profit.

[dothebeats]

What's the difference with all the other cloud mining services out there? We have all stated that cloud mining is dead since 2014, and if ever there is one who remained hashing with real hardware and is running a legit operation, I doubt that someone will ever breakeven--or even profit--off of it. Also, having no limits on buy order is what gave it away. Normally a cloud mining operation can only deliver a certain amount of hash power, but this is the real deal here since they don't impose limitations on buying hash power:D

[carlfebz2]

What's the difference with all the other cloud mining services out there? We have all stated that cloud mining is dead since 2014, and if ever there is one who remained hashing with real hardware and is running a legit operation, I doubt that someone will ever breakeven--or even profit--off of it. Also, having no limits on buy order is what gave it away. Normally a cloud mining operation can only deliver a certain amount of hash power, but this is the real deal here since they don't impose limitations on buying hash power:D

And thats what make it suspicious if you would able to compare on genesis or hashflare they do almost have out of stock on purchasing hash power for minergate we cant be sure if they do have some vacant for rentals and 80 btc can bought nasty HASH but well even those cloud mining who are still operating nowadays i do consider them as ponzi since i was being scammed by hashocean.Remember?