Cloudmining 101

[Arrogantx]

Nice breakdown and a lot of useful info. People should read up more before jumping into some things for sure.

[dodziu]

i think chabatmining is building huge ponzi at the moment
have few mhs overe there, lack of info,pictures,photos etc

[Puppet]

I'd like to hear the OP's opinion in this matter.

I havent seen anything remotely resembling the claimed hashrates. Its not something I give much weight to if there are other ways to verify their hashrate, but with GAW, afaik, its pretty much all there is. And its made worse by how aggressively they sell/promote through affiliate links.

[Phildo]

Seriously, go and read either of those links.

Ok, I'll certainly follow your advise.

A cloud mining operation that does no mining yet claims it does and pays out from money acquired from new purchases is quite clearly a ponzi scheme.

If it does no mining at all, no renting, no re-saleing, yes it is clearly a ponzi scheme.  It is hard to believe for me that this is possible for more than couple of month. Yet, I was surprised many times in my life with "impossible" things. Thanks for info, very interesting.
 

Why don't you believe it's possible. If you give me 1 bitcoin for a cloud miner that will only generate .9 bitcoins I can "sell" you cloud mining forever while sitting in my pajamas and eating pizza.

[yvv]

Seriously, go and read either of those links.

Ok, I'll certainly follow your advise.

A cloud mining operation that does no mining yet claims it does and pays out from money acquired from new purchases is quite clearly a ponzi scheme.

If it does no mining at all, no renting, no re-saleing, yes it is clearly a ponzi scheme.  It is hard to believe for me that this is possible for more than couple of month. Yet, I was surprised many times in my life with "impossible" things. Thanks for info, very interesting.
 

Why don't you believe it's possible. If you give me 1 bitcoin for a cloud miner that will only generate .9 bitcoins I can "sell" you cloud mining forever while sitting in my pajamas and eating pizza.

Because I can count numbers. If you pay out .9 bitcoins per day, you will be broke on a second day. You need to keep selling an increasing number of cloud mining units every day to make profit. This is not easy.

[Mabsark]

Because I can count numbers. If you pay out .9 bitcoins per day, you will be broke on a second day. You need to keep selling an increasing number of cloud mining units every day to make profit. This is not easy.

That payout is 0.9 BTC in total, not per day. In other words, you give the ponzi operator 1 BTC and they give you back 0.9 BTC.

[dyask]

LTCgear is dropping its affiliate program.   Affiliates are unhappy but everyone else is filled with joy over that news.   The affiliates were a royal pain in the butt.

[Phildo]

Seriously, go and read either of those links.

Ok, I'll certainly follow your advise.

A cloud mining operation that does no mining yet claims it does and pays out from money acquired from new purchases is quite clearly a ponzi scheme.

If it does no mining at all, no renting, no re-saleing, yes it is clearly a ponzi scheme.  It is hard to believe for me that this is possible for more than couple of month. Yet, I was surprised many times in my life with "impossible" things. Thanks for info, very interesting.
 

Why don't you believe it's possible. If you give me 1 bitcoin for a cloud miner that will only generate .9 bitcoins I can "sell" you cloud mining forever while sitting in my pajamas and eating pizza.

Because I can count numbers. If you pay out .9 bitcoins per day, you will be broke on a second day. You need to keep selling an increasing number of cloud mining units every day to make profit. This is not easy.

You can count, but you can't read or understand how mining works.

You give me 1 bitcoin. I give you .0000013524 bitcoins a day until we get up to .9, then I tell you it's not worth it to plug the miner in anymore.

[xilatleo]

AMhash by Asicsminer is good share to buy right now for cloudmining I think. Cheap price and cheap maintenance cost. Dividend payout daily. Also Asicsminer is trustworthy

[Nagger06]

isn't this just sad man? i mean people are just disgusting on this forum. Why not just buy the gear and sell the hash? it seems like you could make a fortune if someone would just be legit and mine some fucking coins. its just pathetic...ok personal issues over

GAW: those pictures are a joke and i dont even think that shit is hooked up. then theres the fees, people i know are earning a penney a day after fees on shit they paid $49 PER MHS!!! LOL!? and even worse they will defend gaw to the end. its sad to see really. I did ok on gaw, i bought their primes at 14.99 or whatever and sold them for $40. but when i did have an acount there half the time i couldnt withdraw my btc which should be another red flag on your point system, always holding your money hostage to try and get you to reinvest. just shameful that company. I have a feeling that ponzi is going to crumble pretty soon. they are now trying to launch a coin that you have to buy with their hashpoints which basicly is just another way for them to keep peoples money in their ponzi. the most disgusting thing about gaw and borderline illegal was using friends of mines pool logos on their zenpool bullshit (pretty dumb on their part because we could clearly see there was no jump in hashrate with all that "power" they are mining with)

Genesis-mining: well who knows if they are actually mining, i mean pictures..ok great, how about letting me point my hash at my pool of choice and mine and put the whole topic to bed? the other thing is the payouts are terrible. i started with 10 mhs, payouts were decent so i added another 10, payouts cut in half. twice the power half the pay. doesnt add up. i use multipools on my at home miners and there was no correlation between the payout dropoff on irl miner and cloud miner, no reason i can fathom at all and when i asked i got no response and more of their oh just wait for project x bullshit, so in my opinion mining or not unless i can point to my own pool: scam

recently i found hashx, which is ltcgear for people who dont have the money to throw out a grand for ltcgear. the guy running it runs ipominer and is a decent guy and somehow manages to beat ltcgear payouts by 10-15% through what i dont know but whatever.


this is all pretty much a result of no decent mining hardware being available to buy, alot of companies have turned to shit or just delayed for eternity. something has to change or this whole thing is just going to die. too many scammers and not enough money, its slowly becoming a complete waste of time.

[dyask]

Isn't it interesting the more legit a company is the more widely hated it is?   CEX.io ...

[joust]

AMhash by Asicsminer is good share to buy right now for cloudmining I think. Cheap price and cheap maintenance cost. Dividend payout daily. Also Asicsminer is trustworthy

[plugwarning]It's more expensive than us and pays out less per day[/plugwarning] but they certainly seem to be physically there as we know them reasonably well.

Without dwelling on the shameless plug aspect, their returns and cost base seem similar (they are just slightly more expensive than us and give back slightly less earnings) and so at least they aren't in the 'too good to be true' return bracket.

J
www.megamine.com

[Puppet]

Isn't it interesting the more legit a company is the more widely hated it is?   CEX.io ...

That will change once the ponzi's collapse. Lets see how popular pbmining is when it gets 404'd

It's more expensive than us and pays out less per day

This thread makes no attempt to judge profitability, and Id like to keep it out of it.
All thats being open to discussion here is if a company really offers what it claims to offer.
AMhash certainly does a better job proving that.

[Johny Depp]

More than happy for you to rate Megamine.com if you'd like. Here's our view but of course you are most welcome to form your own.

1) No public mining address
We don't publish it but quite happy for it to be known.

2) No endorsement from any asic vendor
We've a solid relationship with KNC but they don't promote any one customer which we prefer.

3) No pictures of their hardware and datacenter
Nice little thread on here.

4) Open ended IPO
We strictly limit the sellable hash rate to what we physically mine.

5) Referral programs and social networking
We have no open ended referral program as we agree they aren't good news. We do have a few referrals in place but that's when there is some mutual benefit.

6) Anonymous operators
You can find out all about me, and the other directors, at http://www.megamine.com/aboutus.php

7) No exit strategy
We offer CashNow(TM) on our larger contracts for that exact reason. There is posting on the Cloud Mining thread from a customer that used it and was very happy.

Justin
CEO
Megamine.com

-snip-

Our local hydro electric power station


-snip-

Source: http://www.matrichardson.com/p855660541/h23795D3A#h25422d2b

Should I say more ?

[Puppet]

Its a different photo of the same dam. What are you suggesting?
BTW, its here : https://www.google.co.uk/maps/@65.806703,21.6727564,474m/data=!3m1!1e3

In Boden, probably a stone throw away from KnC's datacenter.

[joust]

Source: http://www.matrichardson.com/p855660541/h23795D3A#h25422d2b
Should I say more ?

I hope so.....

We know Matt Richardson and have to date employed him to do all of our official photographs. He lives locally in Boden and took this photo for ourselves and The Node Pole for the announcement about us opening our mine in Boden.
http://thenodepole.com/2014/10/22/hydro66-node-pole-announce-construction-8000m2-ultra-green-arctic-data-centre/

Or were you implying something else??

We will be using him again for some more static photos later in the year, which I'll share when it's done.

Justin
Megamine.com

[joust]

Its a different photo of the same dam. What are you suggesting?
BTW, its here : https://www.google.co.uk/maps/@65.806703,21.6727564,474m/data=!3m1!1e3
In Boden, probably a stone throw away from KnC's datacenter.

Which is two stone throw's away from our datacentre. We are on the same old helicopter base site, the entrance to which is about 200m away from that hydro dam.

For those that are interested it doesn't always look like that, the water that you see coming out is 'overspill' and not actually making any power. The water that does make power is discharged further down the river, but alas when it's running at full chat it makes a less interesting picture.

J
www.megamine.com

[EvilPanda]

I'd like to hear the OP's opinion in this matter.

I havent seen anything remotely resembling the claimed hashrates. Its not something I give much weight to if there are other ways to verify their hashrate, but with GAW, afaik, its pretty much all there is. And its made worse by how aggressively they sell/promote through affiliate links.

What percentage of hash power does a company have to show to satisfy your curiosity, because obviously it's not about just showing the data center.

For the record, the pictures show 160 Antminers S4 and 192 Antminers S3 in a single row.

And one more thing, I'm not arguing about promotion or their mining addresses, which they of course didn't provide, just that you chose to say they haven't showed the pictures, while in fact they did, that's all.

[yvv]

Because I can count numbers. If you pay out .9 bitcoins per day, you will be broke on a second day. You need to keep selling an increasing number of cloud mining units every day to make profit. This is not easy.

That payout is 0.9 BTC in total, not per day. In other words, you give the ponzi operator 1 BTC and they give you back 0.9 BTC.

This is possible, but this is not how ponzi works. Ponzi lets some people to make profit to attract many more future loosers. This is how they make profit which outweighs the risk to be prosecuted.

As for cloud mining, I don't believe they are running a pure ponzi. I think, some of them run fractional reserve mining and some speculate with hash power.
 

[hashie]

Hi Puppet,

Please update Hashie's rating: https://bitcointalk.org/index.php?topic=822446.msg9599671#msg9599671

-Sahra