███ Stay away from GAWminers.com / Paycoin / Paybase - Mineral - SCAM ! ███

[Puppet]

Not sure I follow. As I understand, if I rent hashrate on nicehash, I can point it to any pool I want, even my own bitcoind and sign my blocks however I want, or point it to any pool and prove my control of the worker/account. I could rent the hashrate for as long as my scam is profitable, and increase the rented hashrate as my combined sales grows until I reach the point where I maximized my profits. How would you ever prove or even guess I dont have a datacenter in my basement?

Any company that does not prove its hashrate by showing the blocks is of course, extremely suspicious, but one that does 'prove' it this way, might just be a more clever scammer. Its not a guarantee afaics.

[inBitweTrust]

Not sure I follow. As I understand, if I rent hashrate on nicehash, I can point it to any pool I want, even my own bitcoind and sign my blocks however I want, or point it to any pool and prove my control of the worker/account. I could rent the hashrate for as long as my scam is profitable, and increase the rented hashrate as my combined sales grows until I reach the point where I maximized my profits. How would you ever prove or even guess I dont have a datacenter in my basement?

Any company that does not prove its hashrate by showing the blocks is of course, extremely suspicious, but one that does 'prove' it this way, might just be a more clever scammer. Its not a guarantee afaics.

Proving their hash rate by renting the hash just makes running their operation fraudulent more difficult as they have a middleman to pay out and thus have extremely tight margins(so tight they may as well just buy the equipment themselves) . You are essentially correct that it doesn't conclusively prove they are indeed hashing directly, but it is a very strong indicator that should be considered alongside your other variables.

[bitpop]

True that's why they all turn into scams even legit ones, it's just so easy

[Puppet]

Proving their hash rate by renting the hash just makes running their operation fraudulent more difficult as they have a middleman to pay out and thus have extremely tight margins(so tight they may as well just buy the equipment themselves) .

No, not at all. Because I (being the scammer here), would rent not much more than the hashrate I already sold, or even less,  and rent it only for a (very) limited time (until I run), while taking in revenue for contracts that are pretty much perpetual. Thats where my margin is, and its pretty big.

edit: almost forgot, the rented hashrate actually brings in mining revenue too of course, so the real cost is relatively minor. On a lucky day I might even profit just from renting rigs alone.

[inBitweTrust]

Proving their hash rate by renting the hash just makes running their operation fraudulent more difficult as they have a middleman to pay out and thus have extremely tight margins(so tight they may as well just buy the equipment themselves) .

No, not at all. Because I (being the scammer here), would rent not much more than the hashrate I already sold, or even less,  and rent it only for a (very) limited time (until I run), while taking in revenue for contracts that are pretty much perpetual. Thats where my margin is, and its pretty big.

edit: almost forgot, the rented hashrate actually brings in mining revenue too of course, so the real cost is relatively minor. On a lucky day I might even profit just from renting rigs alone.

Sure, but these cloud operations have been going for a longer time and it is a pretty good indicator that it is legit if they prove the hashrate for 6+ months. But I agree with what you are getting at, this should only be one indicator amongst multiple.

[shivamchawla]

Sold my hashlet prime after reading this earlier. Now i kinda regret it 

[inBitweTrust]

Sold my hashlet prime after reading this earlier. Now i kinda regret it 

Its not only about profits ... but making a conscious and moral decision to not support ponzi schemes or encourage this type of corrupt behavior from businesses.

Feel proud of your decision even if pulling out at the moment you did was inopportune.

[OleOle]

Sold my hashlet prime after reading this earlier. Now i kinda regret it 

Its not only about profits ... but making a conscious and moral decision to not support ponzi schemes or encourage this type of corrupt behavior from businesses.

Feel proud of your decision even if pulling out at the moment you did was inopportune.

Exactly, doing the right thing helps everyone in in the long run. Doing the wrong thing and making a quick buck at others expense only further damages the reputation of bitcoin. Better to support legitimate businesses who take the painful but necessary steps to get compliant, take precautions to safeguard customer capital and produce better outcomes in the long term.

 

[Liquid71]

He created a shitcoin clone of peercoin and he couldn't even do that right, it's forked 

Anyone with money stuck in this cluster fuck good luck

[LiteCoinGuy]

He created a shitcoin clone of peercoin and he couldn't even do that right, it's forked  

Anyone with money stuck in this cluster fuck good luck

gawcoin will "rule da Woooarld"!

Amazon already accepts gawcoin i heard....wait.....no...not yet.....but....next week they start!!!  

[OleOle]

Everyone must mine to their own pool so rented hash must be sustained

Yeah, in-house pools are dubious at best and at least mining to your own pool is a way to check whether you're getting the hashing through-put.

I'm just wondering how long until the house of cards collapses? Three months? Six months? Or do they limp on BFL-style for years taking as much cash as possible?

There's nothing worse than a slow-motion train wreck 

[funtotry]

Proving their hash rate by renting the hash just makes running their operation fraudulent more difficult as they have a middleman to pay out and thus have extremely tight margins(so tight they may as well just buy the equipment themselves) .

No, not at all. Because I (being the scammer here), would rent not much more than the hashrate I already sold, or even less,  and rent it only for a (very) limited time (until I run), while taking in revenue for contracts that are pretty much perpetual. Thats where my margin is, and its pretty big.

edit: almost forgot, the rented hashrate actually brings in mining revenue too of course, so the real cost is relatively minor. On a lucky day I might even profit just from renting rigs alone.

Then what is the point of proving a cloud mining company's mining address? If it is this easy to fake then there is no value to asking to see it

[bf4btc]

Everyone must mine to their own pool so rented hash must be sustained

Yeah, in-house pools are dubious at best and at least mining to your own pool is a way to check whether you're getting the hashing through-put.

I'm just wondering how long until the house of cards collapses? Three months? Six months? Or do they limp on BFL-style for years taking as much cash as possible?

There's nothing worse than a slow-motion train wreck 

It is confirmed that GAW recently purchased a large number of antminers from bitman so they are not 100% illegitimate. I have never really understood their reasoning behind not allowing their customers to mine on other pools, especially for their SHA256 contracts

[premium_domainer]

i hate them too and will never buy anything from them ...

[NeonTranceBadger]

Everyone must mine to their own pool so rented hash must be sustained

Yeah, in-house pools are dubious at best and at least mining to your own pool is a way to check whether you're getting the hashing through-put.

I'm just wondering how long until the house of cards collapses? Three months? Six months? Or do they limp on BFL-style for years taking as much cash as possible?

There's nothing worse than a slow-motion train wreck 

It is confirmed that GAW recently purchased a large number of antminers from bitman so they are not 100% illegitimate. I have never really understood their reasoning behind not allowing their customers to mine on other pools, especially for their SHA256 contracts

Well if you were in the Paybase tinychat Q&A Josh said that they were going to start selling off pretty much all their miners on oneminer. 

[Snipe85]

i hate them too and will never buy anything from them ...

Why would you have such strong feelings towards some random altcoin creators?
I don't love or hate any company, and especially the ones I never bought anything from.

[OleOle]

i hate them too and will never buy anything from them ...

Why would you have such strong feelings towards some random altcoin creators?
I don't love or hate any company, and especially the ones I never bought anything from.

You have to admit, while bizarre, the random statements of hatred do add to the mirth value of the thread 

[coinmaster222]

Gaw mining is moving slowly away from cloud mining to be a Global Trading Platform with its own currency.A lot of cloud miners are going bust as there is way too many of them to sustain profitability.

[sgk]

Gaw mining is moving slowly away from cloud mining to be a Global Trading Platform with its own currency.A lot of cloud miners are going bust as there is way too many of them to sustain profitability.

They launched their own crypto-currency called PayCoin. They're selling each PayCoin for $20 LOL

Looks fishy to me, because:

With 12m paycoins already premined for the company’s investment partners and customers, only about 500,000 paycoins are available for public mining.

http://www.coindesk.com/gaw-miners-altcoin-launch-sparks-speculative-frenzy/

[coinmaster222]

There also buying it for $20 only thing fishy is you