I'm against cloud miners. My arguments

[btc_love]

I see a lot of mad people who spam all around the internet and argue about the money they lost in cloud mining. These people claim that they INVESTED a lot of money and lost everything.

At first, I felt sorry about these people. But after I've found out what cloud mining is, I started to think, that their loss is just their fault. Cloud miners services offer you to buy mining power. That's alright. Also, they say, when your account profitability turns negative, a system closes your account automatically. That's fair too - your account should profit.

But that is the stumbling block between users and cloud mining services. Users think that they've scammed when their account just stopped making a profit. But some users start flooding saying that one or another company is a scam and nobody should trust it.

They spoil the reputation of good products. Just because they were too stupid to read a contract. I have nothing left to say. I don't understand these people!

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[milewilda]

They spoil the reputation of good products. Just because they were too stupid to read a contract. I have nothing left to say. I don't understand these people!

Depends! Why?

There's lot of cloud mining companies nowadays 95% of them are just scam and only Hashflare and Genesis are the ones to whom i believe that these are
legit and operational ones but still even how legit they are,cloudmining profitability is not really that good so it wont still be a good option.
The main reason why these people do cry after being scammed? They are greedy too much on having those good returns on short duration.

[leowonderful]

Some of the cloudmining services out there like Hashnest aren't too bad IMO, Hashnest tells you the daily maintenance rate for the miners they sell and they also provide a neat chart to view past earnings for miners per TH in the case of SHA256, and things mostly go smoothly over there. Last time I checked you can also redeem the miners when they become unprofitable if you have enough of the contracts for a specific miner so you can get physical hardware afterwards as well. There's definitely better ways to invest your coins out there though.

[Steamtyme]

Cloud mining companies are a fairly poor investment most of the time. I briefly looked into a few and it left a bad taste in my mouth, and honestly seemed like a stupid option. People could either buy the coins and hold them, or even if home mining isn't an option buy hardware and host it. I personally don't see cloud mining as a good product, it's a service that really only benefits the provider. Even if things are good, you are just helping them pay off their gear with your money, hoping that you earn more coins than you paid - including maintenance fees.

Any cloud mining with a contract has the ability to leave you out of pocket, as soon as things turn unprofitable. Most flat out cancel the contractual obligation to mine without refund, and don't provide the option to mine at a loss - this should be your choice if you will cover the maintenance fee. On the other hand I've heard of the options where you can rent hash for small periods time when you think it could be particularly profitable, that can work for some but requires a lot of research and luck.

This is just covering the legit operations then there are the myriad of scam operations that take it all and run anyways.

[Slow death]

They spoil the reputation of good products.

good products?

- How long have you been a cloud mining investor?

- How much money did you invest in cloud mining?

- How much profit did you already have in cloud mining?

Just because they were too stupid to read a contract.

too stupid ?

the contract is very vague and opens loopholes for them for always benefit them and harm their customers, for example I heard that only when the price of bitcoin is $9,500 is that the cloud mining will return profits and pay the investors. imagine if they had said that when the price was $17000, I doubt that people would invest money in these cloud mining

I don't understand these people!

maybe you do not want to understand

[subSTRATA]

Some of the cloudmining services out there like Hashnest aren't too bad IMO, Hashnest tells you the daily maintenance rate for the miners they sell and they also provide a neat chart to view past earnings for miners per TH in the case of SHA256, and things mostly go smoothly over there. Last time I checked you can also redeem the miners when they become unprofitable if you have enough of the contracts for a specific miner so you can get physical hardware afterwards as well. There's definitely better ways to invest your coins out there though.

cex.io used to do this back when they were an actual cloud mining company, and it was a huge factor in proving their legitimacy. unfortunately a legitimate operation proved unprofitable as the difficulty rose, so its not really a thing anymore. most of the current running services are well disguised ponzis.

At first, I felt sorry about these people. But after I've found out what cloud mining is, I started to think, that their loss is just their fault. Cloud miners services offer you to buy mining power. That's alright. Also, they say, when your account profitability turns negative, a system closes your account automatically. That's fair too - your account should profit.

thats just fucking shady, the moment a system determines your account doesn't profit, they just cut you off without an option? huge red flag.

But that is the stumbling block between users and cloud mining services. Users think that they've scammed when their account just stopped making a profit. But some users start flooding saying that one or another company is a scam and nobody should trust it.

to be fair, im sure the majority of the people that buy into cloud mining dont even bother to research the service's legitimacy and are pouring money into a ponzi, but there is the off chance that the operation legitimately is not profitable anymore. but the former is far more likely with the lack of legitimate services out there.

They spoil the reputation of good products. Just because they were too stupid to read a contract. I have nothing left to say. I don't understand these people!

just because they failed to read the terms doesnt mean the terms were fair.

I havent kept up with the bitcoin community and news as closely as I have done in the past, but cloud mining is generally unprofitable and most operations should automatically be dismissed as a disguised ponzi, in my honest opinion. Any shows of
maintenance fees,; upkeep costs, etc. can easily be faked with a few scripts. in addition, basic pictures of mining farms can be faked too. i personally never recommend anyone to go for cloud mining, especially since these operations usually run purely off bitcoin, its fairly easy for these scammers to set up and tear down. no licenses for bank transfers involved either, so legally, they can just appear overnight and start operating without any real setup or liability.

[jak3]

I do not even think that Cloud mining is even profitable. What's the point of investing your money important thing which is going to give you not even 1% of your money in a month I made it is connected but are you satisfied with that. I think there are much more profitable options for you for example if you go for trading and Practice set for 3 months and then invest your money which you did (on cloud mining) in a trading platform instead then you can gain much more profit than mining.

[BitBustah]

I do not even think that Cloud mining is even profitable. What's the point of investing your money important thing which is going to give you not even 1% of your money in a month I made it is connected but are you satisfied with that. I think there are much more profitable options for you for example if you go for trading and Practice set for 3 months and then invest your money which you did (on cloud mining) in a trading platform instead then you can gain much more profit than mining.

Why do people continue to invest billions into MLM/Ponzi schemes.  People are gullible and will fall for get rich quick schemes.

Cloud mining isn't entirely a scam because some companies are actually fulfilling their promise but its just a bad business deal for the customer.  Its still not the worst thing you could buy.

[vit05]

Mostly of cloud miners companies are Ponzi schemes that could only be profitable during a bull run. They use mostly of the money receive as an investment in the whole company and them one day they do not have money for dayle expenses. So they start to hold the BTC and make excusing until receive more BTC.

There are little companies that offer series opportunities to invest in mining operation using small quantities of BTC.

[The Sceptical Chymist]

<snip>
This is just covering the legit operations then there are the myriad of scam operations that take it all and run anyways.

Good synopsis of what I figured cloud mining to be--and I don't know a whole lot about it, but everything I've read on this forum has been negative.  Probably for good reason, too, because it seems to be an ideal way to scam people.  Someone who pays a cloud mining company for hashing power really doesn't know what the company is doing with their money, and any data sent back to the customer can obviously be faked (anyone remember Bernie Madoff?).

I get that it's not profitable to mine from home anymore, even if you join a pool and have access to cheap electricity.  It would take quite a long time to break even on your original investment in mining hardware, that's my understanding.  But at least mining solo or in a pool would be a fun and educational thing to do, whereas cloud mining is very risky and probably stressful. 

I'd love to mine bitcoin or altcoins, but I don't have cheap power and don't want to waste money on something that is going to take forever to make me money.  That's why I've gotten interested in PoS coins recently, but that's another matter.  Cloud mining definitely isn't for me.

[btc_love]

Mostly of cloud miners companies are Ponzi schemes that could only be profitable during a bull run. They use mostly of the money receive as an investment in the whole company and them one day they do not have money for dayle expenses. So they start to hold the BTC and make excusing until receive more BTC.

There are little companies that offer series opportunities to invest in mining operation using small quantities of BTC.

but people should know that cloud mining is not investment

[Capt00]

Mostly of cloud miners companies are Ponzi schemes that could only be profitable during a bull run. They use mostly of the money receive as an investment in the whole company and them one day they do not have money for dayle expenses. So they start to hold the BTC and make excusing until receive more BTC.

There are little companies that offer series opportunities to invest in mining operation using small quantities of BTC.

but people should know that cloud mining is not investment

I was heard that people are easy to fool on this cloud mining by investing and having a good ROI on it. I agree that the majority of the cloud mining companies who accept investment are Ponzi scheme or scam. I personally don't trust those cloud mining companies aside from your gadget will destroy if you mine or your investments take them away and shut down their site. But now, I rarely have seen cloud mining companies who are still operating they are not profitable and many people were aware of how shitty they are.

[bitbollo]

cloud mining is the ponzi scheme of the new century.
but btw not it's self cloud mining, but some sites that claim to offer this service but they offer anything since they are just running a ponzi! there was a sort of statistics that only 2-5% of cloud mining sites were cloud mining sites!
Unfortunately more and more people will lose money into these scam, hence because bitcoin is a sort of key word for quickly money (stupid dictionary ) , and because a lot of people are not able to understand how many scam are ready to stole people money.

[diazepam666]

When there is people asks whether this is best cloud mining or not, that time we can see the similar response like op said and other explained below. Better there is possibilities admin can block the thread with the cloud mining query links.

Simple word we can derive could mining as ponzi scheme. No words more to explain it.

[buwaytress]

What reputation and what good products? Sure, the idea was great but there's never been a good implementation of cloud mining. Basically, with that kind of business you want to maximise profits... but investors want transparency (actual performance statistics, and actual share of revenues). Conflict of interest there because the companies won't want to share profits if they were really profitable, and then won't want people to stop investing if they weren't performing (they need new contracts to keep coming in to stay afloat). So we never had a cloud miner who was transparent with pool stats.

Hats off to those who TRIED like Hydrominer. But ultimately, as soon as BTC price flopped, they were all doomed to bankruptcy.

[1Referee]

Mostly of cloud miners companies are Ponzi schemes that could only be profitable during a bull run. They use mostly of the money receive as an investment in the whole company and them one day they do not have money for dayle expenses. So they start to hold the BTC and make excusing until receive more BTC.

Profitable or not, it's just flat out stupid and unethical to put money into an obvious scam just because you can make some quick bucks.

Your investment in these services allows them to continue longer and thus scam more people. Too bad not many people here care about ethics and pump money into scams left and right just because they are too stupid to make money by utilizing their knowledge or skills.

People somehow believe that money in crypto grows on trees; in most cases they walk in with the little funds they have, but end up walking out with $0 and a bad mood.

[bitbollo]

Mostly of cloud miners companies are Ponzi schemes that could only be profitable during a bull run. They use mostly of the money receive as an investment in the whole company and them one day they do not have money for dayle expenses. So they start to hold the BTC and make excusing until receive more BTC.

Profitable or not, it's just flat out stupid and unethical to put money into an obvious scam just because you can make some quick bucks.

Your investment in these services allows them to continue longer and thus scam more people. Too bad not many people here care about ethics and pump money into scams left and right just because they are too stupid to make money by utilizing their knowledge or skills.

People somehow believe that money in crypto grows on trees; in most cases they walk in with the little funds they have, but end up walking out with $0 and a bad mood.

yes. if people continue to finance this (in a bull run I can earn) other people will lose their money.
Absolutely unethical support these sites and type of service.
this is the same reason these are classified like ponzi and in the forum are allowed only in Investor Based Games Section.
Moreover they propose fixed return... without taking care of difficult or any aspects related real mining... they are just a scam.

[magneto]

I see a lot of mad people who spam all around the internet and argue about the money they lost in cloud mining. These people claim that they INVESTED a lot of money and lost everything.

At first, I felt sorry about these people. But after I've found out what cloud mining is, I started to think, that their loss is just their fault. Cloud miners services offer you to buy mining power. That's alright. Also, they say, when your account profitability turns negative, a system closes your account automatically. That's fair too - your account should profit.

But that is the stumbling block between users and cloud mining services. Users think that they've scammed when their account just stopped making a profit. But some users start flooding saying that one or another company is a scam and nobody should trust it.

They spoil the reputation of good products. Just because they were too stupid to read a contract. I have nothing left to say. I don't understand these people!

You're right. A lot of investors into these products are misinformed by people on social media and Youtube that suggest this as some sort of passive income scheme, which misleads them into investing while thinking that there is a somewhat guaranteed profit to be made.

But, the cloud mining industry is just extremely shady as a whole, and you simply cannot place all the blame on the investors.

You simply don't know whether or not they are mining at full capacity of what they claim. 'Fractional reserve' mining is probably something that is very widespread around the industry. Not to mention all the scandals involving hashflare terminating lifetime contracts, and upping the minimum withdrawal rates, etc. These aren't detailed in the contract per se, and is just shady behaviour from individual companies.

[BitHodler]

Not to mention all the scandals involving hashflare terminating lifetime contracts, and upping the minimum withdrawal rates, etc. These aren't detailed in the contract per se, and is just shady behaviour from individual companies.

The life-time contracts are noob traps. Seriously, one doesn't need to be a mining expert to understand that these life-time contracts aren't viable investment products at all. A little understanding and common sense is all you need.

It's a marketing gimmick that I am not sure of whether or not it's a legal claim to make, but then again, most cloud mining sites are scams that can take everything down today and disappear for ever.

As for the increased minimum withdrawals, that can happen everywhere. Even if you read every line in the TOS of whatever site or service, nowhere do they state that withdrawals are fixed to be a certain amount.

[fortunecrypto]

There were times, that Cloud mining is huge people are in a hurry to buy a contract and people actually made money from this until they were exposed, this is just a Ponzi scheme where the early birds are the only one making money first, and latecomers doesn't have anything left in the table.