I’m sure every crypto-enthusiast has heard of cloud mining. Honestly, I saw it as a great opportunity to make some cash without too much headache. Well guess what, I got a ton of headache from cloud mining.
I got hooked up with a platform called Genesis mining that supposedly sold lifetime subscription contracts to cloud mining.
They aren’t really life time subscriptions.
The plan costs about $150 upfront, and it allows you to mine a small sum of bitcoins totaling about $20-30 a month (not counting the transaction fees that the platform takes). Well, I realized that the concept of bitcoin mining is becoming more and more competitive. Which means that returns on investment will be less and less as time goes on. Currently, it would take about 6 months to make a return on a $150 investment, definitely not worth it in my opinion.
You won’t even know if they are really selling hashing power to you in the first place. They could just be deceiving you and giving a small amount of money to be claimed as “profits” from the so call “cloud mining”, but actually nothing was done. They just credited your account with a few bucks.
Pretty much the user contracts will become so unprofitable that people will pretty much cancel themselves and they get to run away with all the BTC investment. And guess what? They won’t owe a single refund and no one will get any of their money back. It’s a win-win for them.
So pretty much this platform is selling cloud based mining contracts that they know will never make any money.
Ultimately users will eventually get discouraged and abandon the platform while Genesis gets to end up keeping all of the money from subscription plans without actually doing anything.
This is a warning for you guys. Don’t be a fool like I was and throw money at cloud mining. And definitely, definitely do your due diligence and research.