Cloudmining 101

[kuusj98]

The only hash power that I currently own (besides a few 280X's ) is 400 shares on LTCGear.
I have wondered from day 1, how can this be legit?

My mind says: sell everything asap
My gut feeling says: sell everything asap
My relatives say: why the fuck did you not sell allready?

Here I am, still with 400 shares, I don't know what the power is that keeps me staying there. I've been scammed big time before, why do I not stop?

So, why should I NOT sell my LTCgear shares?

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[Puppet]

So, why should I NOT sell my LTCgear shares?

Because you'd have some extra money that you might decide to spend on drugs and bad hookers?

[david123]

You're not asking me because of my sig, are you?

[DARKANGEL6415]

So, why should I NOT sell my LTCgear shares?

Because you'd have some extra money that you might decide to spend on drugs and bad hookers?

the only bad hooker is the one that takes your drugs LOL i aint going to let no hooker near my blow, she can blow me all she want but dont touch the blow
 

[pineapples]

cointellect do not require you to use their mining software.

from
https://cointellect.com/download/advanced/

you can point your own miner at ...

Server: stratum+tcp://66.55.92.73:8000
Mining algorithm: scrypt
Password: Any password (ex.: 123, etc...)
User: Read below

Your designated username is simply your miner license with the dashes removed. You can find your miner license towards the bottom of the "Downloads" page.
https://cointellect.com/download/

For example, if your miner license was 1b68-77ec-5c96-0fde → YOUR_USERNAME_NUMBER would be 1b6877ec5c960fde

[pineapples]

Hi, i was about sending fund to my new account at cloudminr.io but i was waiting for my bitcoin confirmation before i found this thread, seriously i have scammed by cointellect.com because i ran there software on my pc with HD 7950 cards, i actually earned dogecoin but it was always be withdrawn by someone else unknown to me, also at my home page of cointellect there is nothing like a withdraw button.
SCAM SCAM SCAM

when you log in.
top left corner is your current balance, with a nice green "COLLECT" button. that's your withdraw.

[joboy84]

Hi, i was about sending fund to my new account at cloudminr.io but i was waiting for my bitcoin confirmation before i found this thread, seriously i have scammed by cointellect.com because i ran there software on my pc with HD 7950 cards, i actually earned dogecoin but it was always be withdrawn by someone else unknown to me, also at my home page of cointellect there is nothing like a withdraw button.
SCAM SCAM SCAM

when you log in.
top left corner is your current balance, with a nice green "COLLECT" button. that's your withdraw.

Yep, never had any trouble with cointellect so far. I have a 10Mhs contract and I mine with my gridseed too. Payments done instantly. So far I am very happy with their service.

If it's a Scam, it's a scam that payout at this moment.

[meadefreling]

Hi, i was about sending fund to my new account at cloudminr.io but i was waiting for my bitcoin confirmation before i found this thread, seriously i have scammed by cointellect.com because i ran there software on my pc with HD 7950 cards, i actually earned dogecoin but it was always be withdrawn by someone else unknown to me, also at my home page of cointellect there is nothing like a withdraw button.
SCAM SCAM SCAM

when you log in.
top left corner is your current balance, with a nice green "COLLECT" button. that's your withdraw.

Yep, never had any trouble with cointellect so far. I have a 10Mhs contract and I mine with my gridseed too. Payments done instantly. So far I am very happy with their service.

Without any argument cointellect is a SCAM.

[DARKANGEL6415]

Hi, i was about sending fund to my new account at cloudminr.io but i was waiting for my bitcoin confirmation before i found this thread, seriously i have scammed by cointellect.com because i ran there software on my pc with HD 7950 cards, i actually earned dogecoin but it was always be withdrawn by someone else unknown to me, also at my home page of cointellect there is nothing like a withdraw button.
SCAM SCAM SCAM

when you log in.
top left corner is your current balance, with a nice green "COLLECT" button. that's your withdraw.

Yep, never had any trouble with cointellect so far. I have a 10Mhs contract and I mine with my gridseed too. Payments done instantly. So far I am very happy with their service.

Without any argument cointellect is a SCAM.

i have never tried coin collect so i cant speak for them. The reason i never tried them " coincollect " is because i dont like that they ask you to download a file so you can mine. I would have tried them and maybe had opinion if they did not want me to do download not sure what the download is for 

[galdur]

I tried this cointellect thing and downloaded the miner
and it never stole any coins from me. It mined DOGE
but I never seemed able to withdraw so I lost interest.

Maybe I was doing something wrong, it´s not that
unlikely. Haven´t been following this operation lately but if
my favorite counter-indicators are consistently declaring it
a scam I´ll definitely be taking a closer look.

[sevenseals]

You probably should also add in 8, the cloud mining has been operating for more then a year. Usually ponzi don't last long..

Normal ponzi's dont, but a mining ponzi can easily last that long or longer. Potentially forever see my disclaimer.

Banks do that ponzi scheme since many years. its called derivate.

[raskul]

here's my picture of a perfect cloud mining contract:

The purchasing (hire-purchase perhaps?) of full hashboards, instead of piddly little GH/s.
Flexibility to change pools remotely, at the click of a button.
live-feed webcams watching over a warehouse of immersion cooled hashboards
trading platform with other cloud users, to control pricing and p2p trading of your purchased hashboards.
Fees paid pro-rata by the user, not taken from mined rewards - if fees don't get paid, hashboards power down.
and most importantly - majority of the mining profit to the end user.

i think too much, granted. but some of these ideas are, for me, what might make a perfect cloud mining contract - in essence, i would still want to own the hardware, rather than rent TH/s.

[Puppet]

here's my picture of a perfect cloud mining contract:

The purchasing (hire-purchase perhaps?) of full hashboards, instead of piddly little GH/s.

Not only do I not see the point, I think its a bad idea. What happens if "your" board happens to underperform. What if it fails?
How would you know if its your board that is causing problems, or the cloudminer that just makes it appear so?

There is no problem selling hashrate by the GH that I can see. Let the vendor work out the capacity / RMA / whatever problems.

Flexibility to change pools remotely, at the click of a button.

Agreed. Should be sine qua non really.

live-feed webcams watching over a warehouse of immersion cooled hashboards

Why bother with the cost of immersion cooling, when you can have "open wall" ambient cooling in cold places, KnC style?
Also webcams seem fairly pointless.

trading platform with other cloud users, to control pricing and p2p trading of your purchased hashboards.

Agreed

Fees paid pro-rata by the user, not taken from mined rewards - if fees don't get paid, hashboards power down.

I dont get this either. Just needlessly complicates administration.

and most importantly - majority of the mining profit to the end user.

Keep dreaming. First you assume there to be profit, which is (very) far from certain. Secondly, no company is going to operate without profit margin. Since you are buying from a cloudmining company that needs a margin, and the cloudmining company is usually buying from the asic vendor who needs a margin, you are automatically at a disadvantage compared to both. If there is a very high chance of profitability for you, then there is an even higher chance for them, and you'll have to explain why they wouldnt exploit that.

[raskul]

again, it was just thought's lolling about in my head as to what my 'perfect' cloud contract would look like, not a white paper for a company to copy and not something that I should expect anyone to dissect or scrutinise but at least you agree there are a couple of good points in my thoughts, so thanks for replying.

[tmfp]

No opinion on grmining.com, puppet? Their offer sounds nice but I couldn't find much information..

These ponzi's are a dime a dozen, new one's started seemingly every day.

If you do come across one that doesnt raise 5 or more of my red flags, or for other valid reasons does not strike you as a scam, do post it and I will check it out. Everything else, especially if you "cant find much info" should be treated as ponzi until proven otherwise. And to be clear, that burden of proof lies with the "company".

Why is that so? Because you say so?

Playing HYIPs since 2004. Made a 5-digit profit with BT and more with some other HYIPs that lasted 2 years or so...

Yeah Sunny, but that's why this thread is called Cloudmining Overview, not Review of Paying HYIP's Pretending to be Cloudminers.
Believe it or not, there are people out here that actually want to invest in genuine operations, run by real people doing real business, and help them create and expand something worthwhile.
I understand that you have HYIP expertise and make money out of them, but colluding with criminal, amoral scumbags in cynical ripoffs isn't everyone's cup of tea.

[OZmaster]

sry to say but to be honest u did a lousy research on some of the companies,,,, u might wanna give more of an effort before posting something like this,,, tyvm

[raskul]

I find it all pretty accurate actually.

[yvv]

3) No relevant pictures of their hardware and datacenter

I don't think that pictures of hardware is a good proof that you actually own this hardware. This have to be done technical way. If you own a mining hardware, you have to able to switch it on or off or switch between pools at specified time. You have to able to arrange a date and time on this forum, and switch all your mining power to some test pool at this time. And we all have to be able to see the change in performance of this pool. After your hash rate is documented, you may switch back to any pool you wish.

[raskul]

3) No relevant pictures of their hardware and datacenter

I don't think that pictures of hardware is a good proof that you actually own this hardware. This have to be done technical way. If you own a mining hardware, you have to able to switch it on or off or switch between pools at specified time. You have to able to arrange a date and time on this forum, and switch all your mining power to some test pool at this time. And we all have to be able to see the change in performance of this pool. After your hash rate is documented, you may switch back to any pool you wish.

Rule number 1 of Cloud Mining: if you cannot switch pools, avoid investing in it.

[Puppet]

I don't think that pictures of hardware is a good proof that you actually own this hardware.

Its say none of the criteria I listed by themselves are good proof. And all of them combined offer no more than a basis for a reasonable assumption.
But the fact a mining operation cant even be bothered to snap some pictures certainly is telling.

This have to be done technical way. If you own a mining hardware, you have to able to switch it on or off or switch between pools at specified time. You have to able to arrange a date and time on this forum, and switch all your mining power to some test pool at this time. And we all have to be able to see the change in performance of this pool. After your hash rate is documented, you may switch back to any pool you wish.

This is covered in the first criterium. But that alone isnt enough proof either. Its entirely possible for a ponzi to rent hashrate at nicehash, redirect it wherever you want it to, until the day their sales dry up and they run off with the money.