I am new in the bitcoin world, and I saw this publicity on instagram about cloud mining, it claimed that I could earn bitcoins with any investment, even without having a hardware. I did a little research but didn't understand much, it seems too good to be true.
The returns promised are not guaranteed, but based on expected growth in hashing capacity of the industry and expected mining rewards which the firm will obtain. If some cloud mining firm promises you guaranteed returns, then it must be a scam operating like a ponzi scheme. Some mining companies do not even tell you where they are based and are not open about their hardware specifications - big red flags.