Mining contracts - the new ponzi

[Baller_1980]

Anyone have experience with scrypt based hosted mining contracts. Looking into this site https://www.minerking.com/ but the prices seem way too good to be true.

Don't forget the fees and mining cost added on top of the shiny advertising figures.

The costs of minerking one time mining:
* you pay 49/59 USD for 10 THash / 100 PHash of LTC/BTC one time mining plan
* a fee is added on top for payment, in case of one plan each this was 7.38 USD

Now for the fulfillment of the mining part. As of today you will get:
* approx 10 GHash/s of BTC mining / 1 MHash/s of LTC mining, i.e. fullfillment will take approx. 10 million seconds (~116d)
* revenue for BTC is split as follows: you mine 0.0000007 BTC/min, deduced is cost of mining 0.000000112 BTC/min and keep 0.000000588 BTC/min
* this will yield 0.098 BTC (advertised are 0.124 BTC)
* revenue for LTC is split as follows: you mine 0.0001291 LTC/min, deduced is cost of mining 0.0001123 LTC/min and keep 0.0000168 LTC/min
* this will yield 2.8 LTC (advertised are 3.33 BTC)
* at  current echange rates (500 USD/BTC, 14 USD/LTC) this would pay back 88.2 USD, not counting the difficulty increase.

Conclusion: Figures may change in the future (and difficulty increase lets me expect the change will be for the worse) but as of now an investment in minerking one time mining will not only pay less than advertised but will not ROI. In contast, you will lose approx. 1/4 of what you paid in USD.

Hi,

I don't understand your calculations...I have multiple Minerking contracts, and I earned a decent profit with the packages.

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[gelar24]

yes true once mining in cex.io or pbmining with GHS prices low and not too much benefit for us if we are not a large capital

but now I just choose to buy or lease mining equipment rental rigs

[guitarplinker]

I think that a miming contract would be great if you could choose your own pool to mine on to prove that you have actual hardware mining for you. But of course that wouldn't work for all these scams either.

[DrG]

The benefit of cloud mining is avoiding all the headaches of dealing with hardware.  The downside is that you're adding another variable into your mining success.  You're relying on the mining cloud or contract to uphold their end of the bargain.  Once they have payment you really don't have any recourse.

You can make money with contracts if you can treat the miners as your own in-house eq and control the pool they mine on and the algo.  Very few mining contracts offer this.

[omz]

Not bad! I used it

[LD2164]

I've got a small contract with pbmining and they have paid out 80+% of my investment so far after just 2.5 months.  So although it's quite likely it is a ponzi, at least it's a healthy one... they never missed a Sunday payment for me. 

[LD2164]

sorry it's actually been 3.5 months

[uprichukalaa]

I wish it were not a ponzi scheme, but it is the most obvious answer.

I singed a contract with the President of isapassion.com and paid 212 dollars back in 2013. I see him live and kicking, but no sign of bitcoin or refund is in the horizon.
The site is gone and so are the internet traces of the person who took my money.

[MrZillion]

Bitcoin Cloud Mining looks good on paper but hard to make it work for you on a small scale.

I tried BitcoinCloudServices. com and CloundMinr.io and for a while it looked good until the payout stopped and one guy even put his whole user list on his website claiming it got hacked. Needless to say, both are 100% scams.

Bitcoin fever is hard to resist so I now  mine alt coins and convert those to bitcoins.

Alt coins are much easier to mine (some even with cpu only) and you can cash out every day if you like. But beware, a lot of pump and dump in the alt coin world. But some of those alts are worth while keeping for the long term and make some decent money. Something that's mot possible anymore with mining bitcoins. Except if you throw tens of thousands of dollars on hardware.

PM me for a list of suggestions if you're interested.

[lama-hunter]

Otherwise i have still some Cloudminr.io Accounts that i can  sell up to you  so... if ure interested 

No for sure.. There are simply quit enough scmamers out there... everyday a new Porject...
But there are, legit Cloudmining Services ... i can give u some tipps. 

regards

[nydiacaskey01]

its hard to tell if those cloud mining sites are really mining even if they shows photos since it's easy to crop pictures nowadays. BTC exchange is quite low for a company to mine and offer cloud mining unlike before where a BTC is worth more than $300 USD.
BTC cant even stay long in the $300 USD level for a long time.

[HeroCat]

Yes, you are right. When you find BTC mining company website - you never know - it is scam or not. 

[nydiacaskey01]

Every time i remember those "mining contracts" I remember cloudminr.io
I was so sure before that they will not close down because of that "mining contract" because they offer 5 tears mining contracts. But I was wrong and so does the others who invested with cloudminr.io
One giveaway on cloudminr.io is their domain name, which is registered only for 1 year, yet they are offering 5 year mining contract.

[Glucose]

Yes, you are right. When you find BTC mining company website - you never know - it is scam or not. 

Reading this will be a good start : https://bitcointalk.org/index.php?topic=878387.0

Really useful :-)

[maokoto]

I think that one can take the risk if the site has these conditions:

-They offer selling your GHs /KHS

-They provide reasonable withdrawal fees


Then you can invest some bits with caution (not a great amount) "mine" for some days (5-7), sell so that you get even or some small profit, and leave the rest of the profit "mining".


Now these small amount is mining "safely" as you would only lose time if that crumbles.

[nydiacaskey01]

Yes, you are right. When you find BTC mining company website - you never know - it is scam or not. 

Reading this will be a good start : https://bitcointalk.org/index.php?topic=878387.0

Really useful :-)

that thread is a very good guide for newbies and old ones who wants to dive into cloudmining investment
it would really help if those sites offering cloudmining put pictures weekly of their operations or maybe post somewhere in youtube

[Blawpaw]

Cloud mining is very Risky; and in general, cloud mining contracts are nothing more than ponzi schemes.

If you want to cloud mine you should buy ghs and not mining contracts.

There are 2\3 sites that are trusted: cex and hashnest. However, for now cex.io is not a good option.

[kampretkabur]

is there any thread or subforum specialized for reviewing cloud mining site, or multipool?

[guitarplinker]

is there any thread or subforum specialized for reviewing cloud mining site, or multipool?

This thread is probably the closest thing that you're looking for. It's a comparison of all cloud mining websites and their risk of being a ponzi. Fair warning: most of them are ponzis, and I'd stay away from cloud mining unless you want fall victim to a scam.

[kampretkabur]

is there any thread or subforum specialized for reviewing cloud mining site, or multipool?

This thread is probably the closest thing that you're looking for. It's a comparison of all cloud mining websites and their risk of being a ponzi. Fair warning: most of them are ponzis, and I'd stay away from cloud mining unless you want fall victim to a scam.

thanks, bookmarked that thread