Some followers of mine have seen my posts calling out cloud mining as scams. I for one fell for it too as I invested in Hashflare right when I learned about crypto a year ago. Consequently, I was only able to receive 30% of what I put in. About eight months ago when crypto prices were at a peak if I had sold my BTC mined then I would had broke-even. Instead I held and now at a significant lost. Hindsight 20/20.
Today BTC price have fallen close to breakeven in cost for mining the coin so a lot of cloud mining services are declining payouts to its investors. Genesis Mining, which has open contracts, in the past few weeks have also stopped payouts due to maintenance costs exceeding the cost of the mined BTC. To make matter’s worse Genesis’s contracts expire automatically if investors do not receive a payout out after 60 days of when payout stopped. Investors are stuck with the short end as long as BTC prices remain near $6,000.
This has created a lot of angry Genesis Mining investors and I cannot blame them. Genesis Mining goes further by selling existing investors more expensive contracts. Genesis is advertising that the additional contracts can potentially extend the existing open contracts once BTC price rises again before the 60 days grace period.
This is likely not going to end well for many as those who have invested or seen the news regarding Hashflare. I sympathize with all those who have cloud mining contracts and are on the short end of it.
There is no chance I will ever invest in a cloud mining contract ever again and I recommend all to avoid them at all cost.
One could say it was investors poor oversight on not expecting btc price to drop significantly. However all those cloud mining companies were paid in full at the beginning from investors on for cost of mining rigs. To somehow for the investors out now while keeping the rigs themselves it is plan obvious this is a scam. The sale of contracts was to lure investors into giving capital. Once the companies got the cash they would be figuring out ways to get out of their promises to investors. Total a scam.
What do you guys think?
Date of post: 8/24/2018