With so many people joining crypto mining scams every day it was about time we write an article about real crypto mining compared to scam mining. What is it a crypto mining scam, is real mining profitable?
The crypto mining scams
Lets start with the big question, does mining scams really mine any crypto? No they dont. They claim to be mining crypto but in reality they accept deposits from people and then pay out a small percentage to people who joins early or who refer many clients. We looked at a few in the past, for example the Cryptovest scam, but there are too many to be able to review them all….
For example, you pay $1000 to enter, the scamsters then keep $500 as their profit and spend the other $500 to pay people who want to withdraw money. Yes this mean that some will be able to withdraw their profit, but only small percentage.
Many join these scams knowing that it can never pay out the fake returns, they speculate in being early so they will profit. Keep in mind that you are then liable in the same way as the people behind the scam, and you could end up in jail (you are knowingly steeling other peoples money).
You will argue that you see a return in your back ‘mining’ back office. That is just a number, like if I now state that you have won $10 000 for reading this article. I dont have the money to pay you, you might still feel like a winner….
Real crypto mining
There are not many real crypto mining setups to chose from. As it have become more difficult to mine Bitcoin the mining business have become corporate – you need hundreds of thousands to buy into a mining operation. Or millions to setup your own.
It is not worth it to setup your own mining operation at home, this was a big thing in the past, today its hardly worth it. During the first half or 2020 the Bitcoin mining rewards will also be cut in half, this is part of the original design of Bitcoin, it becomes more difficult to mine and the rewards smaller (based around the assumption that the price will always go up – which it does not).
What can I make from crypto mining
As of today, November 21, the price is $8000. We used the calculator on Bitcoin.com website, and looked at cloud based mining which the mining scams always claim to offer
As you will see, if you go for the smaller package you will actually have a loss, as the daily fee is $15 while you can earn less than $10. Genesis has lower fees, $9 per day, still dont help much. If you go for the biggest package you will actually make a 30% annual profit, which is good.
If the Bitcoin price goes up you will of course earn more. If it goes down to $4000 you will probably lose money on all packages. As you see, mining is risky and there is no guaranty for profit, the real world does not work the way the scamsters claim it works.
If you have the money to invest 10K or more, you should probably enter a real mining cloud. There is fair chance of profit. If you consider the many mining scams please stay away, the only way we can stop these scams are by not investing into them. Keep in mind, you are giving money away. 90%+ will never receive any money back. The few people who make money often start their own mining scams, the greed get the better of them and turn them into new and often more greedy scamsters.
As a side note, I know from insiders that a lot of top earners in MLM actually joins these scams, under the name of family members or friends. They spread the word to some of their key networkers, and together they profit from the scams while thousands lose their money. This just shows to what extent many of the so called leaders will go to earn money. There is no pride left in the network marketing industry. It is all about money.