And the story repeats itself again...
Several minutes ago, I was going through the remainder of my bookmarks when I found a referral link to another once-promising cloud mining site - Cryptomine.io, that someone had posted here on these forums. I clicked it and... Nope. Nothing. So I searched its name on Google and yup, it was another ponzi.
Just like all the others. One by one like dominos they all fall down.
Well that sucks. It seems they were forced to suspend operations because the cost of maintenance exceeded the profits from mining due to the falling BTC price. ZeusHash was recently forced to do the same and AMHash shut down some of their less efficient miners as well. It looks like there will be more downsizing of mining farms to come as long as the BTC price continues to fall further.
This is true.
Saying that CEX.IO was the only legitimate cloud mining operation was a bit of an exaggeration on my part. But it does seem that the majority of the industry is filled with scams nowadays. People always gravitate towards the ponzis because they have much higher payouts. These ponzis then become successful and their success drives the creation of further ponzis. I still can't say for certain whether PB Mining is/was a ponzi or not but up until their recent meltdown, their rates were very, very attractive compared to CEX.IO's rates which were terribly overpriced.
Gavin Andresen said something of a similar effect too:
http://cointelegraph.com/news/112329/gavin-andresens-fractional-reserve-mining-cloud-miners-respond
And finally, I don't think PB Mining, Hashprofit, or Hashie.co were obvious ponzis. Hashprofit was a gold sponsor of the Bitcoin Conference in Saint Petersburg and Hashie.co had a close relationship with AMHash (which as you said, is owned by ASICMiner and is therefore likely to be legitimate). If it was so obvious that these sites were ponzis then news sites such as CoinTelegraph would have steered clear away them. Cryptory, on the other hand, was an obvious ponzi disguised as a cloud mining firm and they were rightfully ignored because of it:
EDIT: I changed the thread title to a more accurate one and also because they have suspended their cloud mining operations (at least for the time being).
Several minutes ago, I was going through the remainder of my bookmarks when I found a referral link to another once-promising cloud mining site - Cryptomine.io, that someone had posted here on these forums. I clicked it and... Nope. Nothing. So I searched its name on Google and yup, it was another ponzi.
Just like all the others. One by one like dominos they all fall down.
According to their twitter and blog, CEX.IO is temporarily suspending cloud mining:
http://blog.cex.io/cryptonews/cex-io-temporarily-suspends-cloud-mining-services/
http://blog.cex.io/cryptonews/cex-io-temporarily-suspends-cloud-mining-services/
Well that sucks. It seems they were forced to suspend operations because the cost of maintenance exceeded the profits from mining due to the falling BTC price. ZeusHash was recently forced to do the same and AMHash shut down some of their less efficient miners as well. It looks like there will be more downsizing of mining farms to come as long as the BTC price continues to fall further.
One point to the OP: The Ghash pool is not just their own miners, anybody can mine there. I have done so myself. I do not know what percentage of the pool is their miners and what is other peoples. I bet nobody except them know.
This is true.
If people would bother to do some actual research they would quickly find out that there are a few ASIC manufacturers providing cloud mining services. Instead, most people waste their money by throwing it at obvious ponzis that refuse to provide any evidence of legitimacy despite. And that's after being warned my multiple people not to do so. And then they start crying when they get ripped off.
It's as simple as this. If a company/service/whatever refuses to provide any evidence of legitimacy, don't give them your money.
Also, compared to AMHash (ASICMiner) and Hashnest (Bitmain), CEX.IO was insanely overpriced and less legitimate.
It's as simple as this. If a company/service/whatever refuses to provide any evidence of legitimacy, don't give them your money.
Also, compared to AMHash (ASICMiner) and Hashnest (Bitmain), CEX.IO was insanely overpriced and less legitimate.
Saying that CEX.IO was the only legitimate cloud mining operation was a bit of an exaggeration on my part. But it does seem that the majority of the industry is filled with scams nowadays. People always gravitate towards the ponzis because they have much higher payouts. These ponzis then become successful and their success drives the creation of further ponzis. I still can't say for certain whether PB Mining is/was a ponzi or not but up until their recent meltdown, their rates were very, very attractive compared to CEX.IO's rates which were terribly overpriced.
Gavin Andresen said something of a similar effect too:
http://cointelegraph.com/news/112329/gavin-andresens-fractional-reserve-mining-cloud-miners-respond
Quote from: Gavin Andresen
"I don't know nuthin' about 'cloud mining' - so I've got a dumb question.
How do you know that when you send money to a cloud mining place they are actually dedicating hardware to hashing for you? What stops them from practicing 'fractional reserve mining' - reselling the same hardware to eleven different people, and using the money coming in to pay Fantabulous Weekly Returns With Profitability Guaranteed?"
How do you know that when you send money to a cloud mining place they are actually dedicating hardware to hashing for you? What stops them from practicing 'fractional reserve mining' - reselling the same hardware to eleven different people, and using the money coming in to pay Fantabulous Weekly Returns With Profitability Guaranteed?"
And finally, I don't think PB Mining, Hashprofit, or Hashie.co were obvious ponzis. Hashprofit was a gold sponsor of the Bitcoin Conference in Saint Petersburg and Hashie.co had a close relationship with AMHash (which as you said, is owned by ASICMiner and is therefore likely to be legitimate). If it was so obvious that these sites were ponzis then news sites such as CoinTelegraph would have steered clear away them. Cryptory, on the other hand, was an obvious ponzi disguised as a cloud mining firm and they were rightfully ignored because of it:
EDIT: I changed the thread title to a more accurate one and also because they have suspended their cloud mining operations (at least for the time being).