Cloud Mining Bitcoin 2017 Scam Formats
Cloud Mining Bitcoin 2017 Scam Formats https://blltly.com/2t29wc
Bitcoin mining is a catch all term to describe the process of adding transactions to the bitcoin ledger. It serves the important function of securing and validating blockchain transactions, and it can be potentially lucrative if approached strategically. We break down the best available bitcoin mining software and the best ways to utilize them in this article.
Be careful though, just like with many cryptocurrency exchanges, you have to do your own due diligence with the platform you are utilizing to make sure it is legitimate. There are a lot of scammers in the space that try to take advantage of newcomers and unsuspecting investors. Below we outline some of the best cloud mining options currently available.
Cloud mining is a way to earn cryptocurrency by renting computing power from third-party sources. Just like hosted mining, it is a way to start mining cryptocurrency that does not require the individual to set up and maintain a physical mining operation. This makes mining more accessible to those without technical skills. However, unlike hosted mining, a cloud mining customer does not own the mining rigs.
When a customer rents computing power from a cloud mining provider, the customer usually pays a fee on a monthly basis for the electricity costs and maintenance to keep the ASIC mining as much as possible. These terms are typically defined in a long-term contract. Due to the volatile nature of cryptocurrency mining profitability, the upside of such a long-term contract can be difficult to assess. Terms may look favorable upon signing the contract, but as market conditions change, so can the profitability.
Cloud mining businesses have existed for years in Bitcoin and gained a lot of traction in general when other cryptocurrencies started seeing increased trading volumes in 2017. The cloud mining business owns the ASICs and is responsible for paying out customers according to the terms of their contracts.
Consistent profitability can be difficult, as mining is a very competitive business where operators aim to pay minimal energy prices. If a cloud mining business adds its own fee on top of the energy price, then it becomes harder to be competitive with miners that only pay for the electricity.
Some cloud mining providers may promise advanced features that reportedly lead to higher profitability, such as switching between which coins are mined based on profitability, or mining several coins at once. In general, we would advise caution when mining anything other than Bitcoin, as many cryptocurrencies have low trading liquidity and high price volatility. Their profitability can quickly evaporate, which is costly when locking into a longer term contract.
The biggest problem with cloud mining is that as a customer, there is no guarantee that your money is actually being used for mining. The business takes capital from its customers and needs to pay them returns. This can, however, also be done by investing the customer money in other activities that may have significantly more risk.
The main difference between cloud mining and hosted mining is that with hosted mining, the client owns the mining hardware and can get it physically delivered to them in case something goes wrong at the hosting site.
Before we start with this in-depth Ecos cloud mining review, let us first zoom over the fact that cloud mining is a highly speculative investment. A sizable chunk of all cloud mining platforms are either outright scams or at the least, they deceive unsuspecting users by promising unrealistically high returns. So it is very important for you to carefully assess the legitimacy of a cloud mining platform before you invest any money in it.
ECOS cloud mining is available in three different variants including a Web app, as well as Android and iOS apps. Ease of use is unlikely to be an issue even for inexperienced users as ECOS seems to have made a special attempt to make the apps practical and to the point.
The Google/Facebook actions follow alarms going off at all levels of government. Almost simultaneously, the FTC took one of its first major actions against a cryptocurrency pyramid scheme, upon the heels of a yearlong demonstration of similar actions by the SEC, states and foreign governments against fraudulent cryptocurrency Ponzi/pyramid cloud mining investment schemes. 2b1af7f3a8