Mining contracts - the new ponzi

[CoinFirma]

Because my husband doesn't mention it on his LinkedIn profile, it's all a lie?

Tell you what, I'll update his LinkedIn profile right now.

Good grief...

[ghur]

One works for a casting agency and the other is an actress.

To be fair it says that right on their page, so in a sense you are verifying their claimed identities...

Except you'd expect the linkedin to mention CoinFirma, and the actress to have something better to do than CS.

[CoinFirma]

http://www.linkedin.com/in/ryansfelton - Updated...

As I said, not *all* mining companies are "ponzi* schemes.  And to cry "IT'S A SCAM" just because something wasn't listed on LinkedIn of all places, is a knee-jerk reaction.  

Piggles, our free offer still awaits if you're interested.  

[smooth]

One works for a casting agency and the other is an actress.

To be fair it says that right on their page, so in a sense you are verifying their claimed identities...

Except you'd expect the linkedin to mention CoinFirma, and the actress to have something better to do than CS.

Come on man, its a family business of sorts and actors often do other work in between gigs. Would she seem more authentic if she were waiting tables?

(Assuming everything is as it appears, which you never know in this space.)

[CoinFirma]

Thank you, Smooth.  Remco just doesn't understand how the acting business works ... and it's a hobby of mine, not a full-time job.  I have no delusions of being Meryl Streep   I'm committed to our business and I'll be happy to reply to your support emails.

Remco - I assume you saw that my husband's LinkedIn profile was updated?  ;-)

[ghur]

Well look at that. Mining contracts that might be slightly legitimate. That's new.

[MrPiggles]

Mr. Piggles,

Regrettably, there are a few bad actors in the cloud-mining business.  However, it's unfair to paint all of us in the sector with such a broad brush.

As a show of good faith and to demonstrate that not all cloud-mining companies are a "ponzi", please accept our offer of 20 GH/s of free cloud mining for 1 week. All we ask in return is that we live up to our end of the offer; you let others know that we kept our word.

Please email us your contact information via the forum, and we'll email you.  Sound fair?

I never said all of them were bad, but some are so deliberately vague/sketchy that there is no possible conclusion other than scam, imo.

PM sent

[CAMTRONNNNN]

I counted manually. Post ownership proof of word intact.

[MrPiggles]

Disclaimer: I've signed up with coinfirma for their free 20 gh offer, so yes I am a paid shill.

However - this is what a mining site should look like, imo.

Verified payment methods - check (verified with bitpay)
Mining direct to wallet - apparently so (will see as it mines)
Open and clear ownership - yep
Physical address - yep

They certainly are on the non shady end of the spectrum as far as cloud mining companies go imo

[anyone4u]

mining contract = I mine coins and give you a less return than what you could have bought them at market price for, from my experience. I paid $45 and got about $10 worth of coins. Wow!

[tricass]

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.

[jeppe]

It is hard to say if a company is a ponzi, there is no way to tell from a website. The only way would be to see the companies mining equipment.

[alhague]

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.

[m3]

I am a developer at www.altcc.com We offer Scrypt, Scrypt-N and SHA256 mining contracts. We let you choose your own pool and there are no hidden fees. You pay and we start. We have just recently redeveloped the website and are adding features to it. Check us out at www.altcc.com

[smooth]

What is everyone's thoughts on the long term viability of mining contracts? Some people are offering 5 year and even lifetime contracts, but will mining contracts even be a relevant thing in the future?

5 year and perpetual mining contracts are a scam. First of all it is very unlikely that any one of these mining contract sellers will be around in five years (much less perpetually), and whatever mining capacity you buy now will likely be essentially worthless in a year or less due to increasing difficulty.

[smooth]

You know what a mining company could do if it wanted to demonstrate that its 5-year mining contract is not a scam? Put the money in escrow with 20% to be released to them each year when they deliver (or better yet 1 2/3% per month), with the remainder to be returned to the buyer when they shut down or disappear. We won't be seeing that any time soon.

[808Mining]

There is still value in mining contracts.
Getting what you paid for and having access to first class customer support are the key, as it is with any business.

Have to agree, 5 Year contract seem risky. Not just in the longevity of the company, but also the relativity of the coin.

Mining Contract are great way to get higher hash rates for shorter periods.

Our clients seem to be satisfied with 120hour (5Day) contracts with reasonable disclosure on expected yield.

http://808Mining.com powered by GHashForCash Network of Independent Miner Operators.

[elysid]

Maybe after the hardware hits an R&D wall (i.e., 14nm and smaller) would 5 year contracts begin to sound remotely feasible.  Otherwise, so much changes in the space of months in cryptocoinland, so my general thought is "no."  Keep in mind that the environment for mining hardware is extremely small scale, not to mention that the market cap for bitcoin is still in the single digit billions, not even close to that of Google.

If institutional investors start pouring their money into bitcoin and related businesses (imagine publicly traded mining companies, or ASICs for $99.99 @ Target), imagine how those entities taking advantage of economies of scale would wipe out everyone else.  I doubt it'd take three years to accomplish that, let alone 5.

3 months and less would be my limit.  IMO, the best reason to get a mining contract would be to corner the future supply of a particular coin such as DOGE (as of this moment); unless you've got rich friends in high places, bitcoin is too far gone.  for now.  the hardware is evolving way too fast for now.

my 2 mBTC.

[kickbit]

This is not Ponzi of course.
Ponzi scheme depends on new investors. And most of "cloud hashing" services depends only on fake promises
But they have many gullible people in common

[MrPiggles]

This is not Ponzi of course.
Ponzi scheme depends on new investors. And most of "cloud hashing" services depends only on fake promises
But they have many gullible people in common

shut up and read the thread before repeatign the same stupid shit other people incorrectly already said.

many of the ponzi mining sites offer referrals and depend on new investors