▁ ▂ ▄ ▅ ▆ Cloudmining 101 (ponzi risk assessment) ▆ ▅ ▄ ▂ ▁

[IanFoxley]

Is there anyone else who's got ZeusHash MHS contracts? Mine's been frozen for who knows how long and there is no response for support about a refund.

They were closed ages ago, December I think as the payouts were lower than the maintenance fee. Did you look through your emails as they did let everyone know.

This was an email I had from them on the 19th December.

This is an important notice for your MHS contracts.

Due to the surging of Litecoin minining difficulty, the daily payout of MHS
fails to cover the maintenance fee today. According to the term of MHS
contract, "the payout allocation will be terminated in case the daily mining
return is lower than the maintenance fee for 10 days in a row".

We are sorry to inform you when this continues for 10 consecutive days, we'll
have to terminate your MHS contracts. We didn't expect this happening so soon
but we have no other choice.

For now, GHS will be a better investment and we recommend you to buy GHS
instead.  And to thank you for your long-term support and faith in us, we'd
like to give you a GIFT of 5 GHS so you can continue with your profits in
cloud mining. Please check your balance in 24 hours.

Ian

[cablepair]

Hey, add xscrypt.com i think it is 1+2+3+4+5+6+7 but i make a test on it, and them are paying as clock time.

nice that a 100% ponzi scheme 
i try load a website and im not any proof he run "real mining" with hardware mining, also im not see his ANN in this forum 
that make we can't get more information about his cmpany

Lol it have the ANN 1 month ago: https://bitcointalk.org/index.php?topic=1067965.0

Sure i want to see the mining proof too, but as i felling good with them i make a test.

[mmmaybe]

Thank you Puppet and all other contributers I've started cloudmining recently (well, you gotta do something... even if losing) and this thread has been of great importance. Sending a little token of my respect for your work, Puppet 

[Valanor]

Hey, add xscrypt.com i think it is 1+2+3+4+5+6+7 but i make a test on it, and them are paying as clock time.

nice that a 100% ponzi scheme 
i try load a website and im not any proof he run "real mining" with hardware mining, also im not see his ANN in this forum 
that make we can't get more information about his cmpany

Lol it have the ANN 1 month ago: https://bitcointalk.org/index.php?topic=1067965.0

Sure i want to see the mining proof too, but as i felling good with them i make a test.

he get negative trust from tomatocage because he run ponzi scheme
https://bitcointalk.org/index.php?action=trust;u=515533

also im not see proof of his hardware

[Phildo]

Thank you Puppet and all other contributers I've started cloudmining recently (well, you gotta do something... even if losing) and this thread has been of great importance. Sending a little token of my respect for your work, Puppet 

Why do you "gotta do something?"

[cryptojumper]

Thank you Puppet and all other contributers I've started cloudmining recently (well, you gotta do something... even if losing) and this thread has been of great importance. Sending a little token of my respect for your work, Puppet  

Why do you "gotta do something?"

You know an old saying a man's gotta do what a man's gotta do.. Lol he takes it literally looks like..
Seriously, he does not intend to lose it, just says he is willing to a take big risk I would think..

[mmmaybe]

Thank you Puppet and all other contributers I've started cloudmining recently (well, you gotta do something... even if losing) and this thread has been of great importance. Sending a little token of my respect for your work, Puppet  

Why do you "gotta do something?"

Because I'm human. Partly, at least And humans tend to get bored by doing nothing. I'm kinda too old for football etc, so why not mine?

[Phildo]

Thank you Puppet and all other contributers I've started cloudmining recently (well, you gotta do something... even if losing) and this thread has been of great importance. Sending a little token of my respect for your work, Puppet  

Why do you "gotta do something?"

Because I'm human. Partly, at least And humans tend to get bored by doing nothing. I'm kinda too old for football etc, so why not mine?

Because you will end up with less bitcoins than you started with. If you want to give away money, I'm sure you can find a better place to spend them than a cloud mining company.

[tmfp]

Just a clarification about the much used term ROI (return on investment). I just want to make sure everyone's talking about the same thing.

Someone told me the other day that they had bought some hash contract for let's say 1BTC. It is not transferable or resaleable.
Its only value is its projected earnings. He was very happy to tell me that, over 4 months, he had cumulatively received back in small payments 1BTC and that his ROI was 100%.

I have a conventional fiat business background and said no, your ROI is 0%. The 'asset' that you paid 1BTC for has no fungible value so it is a -1BTC on your balance sheet, which also contains a +1 from your earnings, equalling zero, which is the ROI you would have if the contract stopped paying now.
Up until break even, you are just receiving your own money back.

No need for any abuse here (probably get it anyway), it's a serious question because I can see some newbies seeing claims of 150% ROI meaning 150% profit.
 

[tyrexs]

Thank you Puppet and all other contributers I've started cloudmining recently (well, you gotta do something... even if losing) and this thread has been of great importance. Sending a little token of my respect for your work, Puppet  

Why do you "gotta do something?"

Because I'm human. Partly, at least And humans tend to get bored by doing nothing. I'm kinda too old for football etc, so why not mine?

Because you will end up with less bitcoins than you started with. If you want to give away money, I'm sure you can find a better place to spend them than a cloud mining company.

agree with you, because i have bad story with cloud mining. i get my coins back but  less bitcoins than i started. so what do you think better ponzi or cloud mining?

[cryptojumper]

Just a clarification about the much used term ROI (return on investment). I just want to make sure everyone's talking about the same thing.

Someone told me the other day that they had bought some hash contract for let's say 1BTC. It is not transferable or resaleable.
Its only value is its projected earnings. He was very happy to tell me that, over 4 months, he had cumulatively received back in small payments 1BTC and that his ROI was 100%.

I have a conventional fiat business background and said no, your ROI is 0%. The 'asset' that you paid 1BTC for has no fungible value so it is a -1BTC on your balance sheet, which also contains a +1 from your earnings, equalling zero, which is the ROI you would have if the contract stopped paying now.
Up until break even, you are just receiving your own money back.

No need for any abuse here (probably get it anyway), it's a serious question because I can see some newbies seeing claims of 150% ROI meaning 150% profit.
  

You are technically right, but in this forum roi often means that you got your money back (since you lose them most of the time lol).

According to wikipedia
return on investment = (gain from investment – cost of investment) / cost of investment
or
return on investment (%) = (Net profit / Investment) × 100
where:
Net profit = gross profit − expenses.

So if your cloudmining contract repaid itself, but did not generate any profit, it would be most accurate to say it was 0% roi, but it's no fun

[cryptojumper]

I stumbled upon such a gem I couldn't resist pasting it here...
Anyone still wondering how all these ponzi scams able to generate quick roi etc? No problem - here is your answer from one of those scams:

How do you plan to generate the extra percent per month ?

Extra percentage generated automatically.

[Phildo]

Thank you Puppet and all other contributers I've started cloudmining recently (well, you gotta do something... even if losing) and this thread has been of great importance. Sending a little token of my respect for your work, Puppet  

Why do you "gotta do something?"

Because I'm human. Partly, at least And humans tend to get bored by doing nothing. I'm kinda too old for football etc, so why not mine?

Because you will end up with less bitcoins than you started with. If you want to give away money, I'm sure you can find a better place to spend them than a cloud mining company.

agree with you, because i have bad story with cloud mining. i get my coins back but  less bitcoins than i started. so what do you think better ponzi or cloud mining?

Better is doing nothing. If you have x bitcoins or enough money to buy x bitcoins. If you do nothing you will have x bitcoins. No matter what the price of bitcoins, you will be better than having less than x bitcoins which is what you will have if you do a cloud mining ponzi.

[ATCkit]

I stumbled upon such a gem I couldn't resist pasting it here...
Anyone still wondering how all these ponzi scams able to generate quick roi etc? No problem - here is your answer from one of those scams:

How do you plan to generate the extra percent per month ?

Extra percentage generated automatically.

ya- generated automatically like unicorn droppings.

[SavellM]

Just a clarification about the much used term ROI (return on investment). I just want to make sure everyone's talking about the same thing.

Someone told me the other day that they had bought some hash contract for let's say 1BTC. It is not transferable or resaleable.
Its only value is its projected earnings. He was very happy to tell me that, over 4 months, he had cumulatively received back in small payments 1BTC and that his ROI was 100%.

I have a conventional fiat business background and said no, your ROI is 0%. The 'asset' that you paid 1BTC for has no fungible value so it is a -1BTC on your balance sheet, which also contains a +1 from your earnings, equalling zero, which is the ROI you would have if the contract stopped paying now.
Up until break even, you are just receiving your own money back.

No need for any abuse here (probably get it anyway), it's a serious question because I can see some newbies seeing claims of 150% ROI meaning 150% profit.
  

You are technically right, but in this forum roi often means that you got your money back (since you lose them most of the time lol).

According to wikipedia
return on investment = (gain from investment – cost of investment) / cost of investment
or
return on investment (%) = (Net profit / Investment) × 100
where:
Net profit = gross profit − expenses.

So if your cloudmining contract repaid itself, but did not generate any profit, it would be most accurate to say it was 0% roi, but it's no fun

+1 this is exactly how it should be viewed.
Especially for those contracts that you cannot sell up.

[Hubus]

Up until break even, you are just receiving your own money back.

You are technically right, but in this forum roi often means that you got your money back (since you lose them most of the time lol).

According to wikipedia
return on investment = (gain from investment – cost of investment) / cost of investment
or
return on investment (%) = (Net profit / Investment) × 100
where:
Net profit = gross profit − expenses.

So if your cloudmining contract repaid itself, but did not generate any profit, it would be most accurate to say it was 0% roi, but it's no fun

For me, ROI can also be seen as a time unit, maybe there is a correct word for it, too.

So: ROI could be 13 months, for example, meaning the time to reach break even (0 expenses, 0 profits).

[cryptojumper]

Up until break even, you are just receiving your own money back.

You are technically right, but in this forum roi often means that you got your money back (since you lose them most of the time lol).

According to wikipedia
return on investment = (gain from investment – cost of investment) / cost of investment
or
return on investment (%) = (Net profit / Investment) × 100
where:
Net profit = gross profit − expenses.

So if your cloudmining contract repaid itself, but did not generate any profit, it would be most accurate to say it was 0% roi, but it's no fun

For me, ROI can also be seen as a time unit, maybe there is a correct word for it, too.

So: ROI could be 13 months, for example, meaning the time to reach break even (0 expenses, 0 profits).

It's more a return OF investment than ON investment if you look at it this way. But I copied an official explanation of this ecomonic term. Of course it is often being used a bit differently in these forums..

[jorjito25]

When it comes to PACMICz, I consider it a loan to BitMain/Hashnest, which I quickly get back with a decent interest rate. With the paid back load + interest I can re-invest it anyway I want. At the end, we as customers get the option to invest in S6s.

Win-win.

[jorjito25]

Which cloudmining sites offering scrypt mining is legit? Bit-x has it, and I consider them ok. Hashnest/BITMAIN has offered it but no longer.

What do we know about scrypt cloudmining...?

[b-trading]

even if people all around the world said that the "xxxx" cloud mining company is legit i will never be interested again to invest in cloud mining