[2014-08-14] Gavin Andresen Suspects Ponzis in Bitcoin Cloud Mining

[LiteCoinGuy]

Gavin Andresen Suspects Ponzis in Bitcoin Cloud Mining

Gavin Andresen, perhaps the most respected and well-known Bitcoin developer today, made a rather interesting statement about Bitcoin cloud mining the other day, and the strange thing is that it went basically unnoticed by the community as a whole. Redditor /u/zapt0 asked the /r/Bitcoin community about mining contracts and whether or not they could be solid investments, and most of the responses were rather negative when discussion came to the long term prospects of earning money through one of these cloud mining contracts. Gavin echoed the general sentiment found in other responses, but he also took his view on the subject to the next level by stating, “I suspect many of [the Bitcoin cloud mining companies] will turn out to be Ponzi schemes.”

http://www.cryptocoinsnews.com/news/gavin-andresen-suspects-ponzi-schemes-bitcoin-cloud-mining/2014/08/14


maybe in the end its a good thing when we lose GHash.IO ...  

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[Kprawn]

Well it's not as if we did not suspect that, just go browse around, and you will find loads of discussions on many of the threads on this exact topic.

When you read these topics, check for the companies that can produce evidence of the acctual mining being done. {Photos / videos / Site visited and documentaries done etc.}

If you cannot find any evidence, that these companies are acctually mining, you will know it's a ponzi scheme.

Let's be honest, if I had a huge mining operation like that, I would boast about it. {I would take photos and videos of the data centre operations} from secure angles obviously.

You can hide your location, but you can still "show case" it or get 3rd party validation, as proof of mining being done. {And some of these companies has none of that}

So use common sense, before you decide to invest. 

[zhinkk]

Nice to see such a valuable member of the community having an opinion like this. A lot of these companies are just plain pathetic.