Quote from: Syke on May 13, 2014, 05:42:48 AM

Quote from: oztusk on May 13, 2014, 02:20:21 AM

if you assume that anyone runs antiquated hardware... which is insane

They already spent the income buying the hardware. How are they going to fund buying new hardware? New customers? Bingo! Ponzi.

I'm impressed people still think there's hardware.

There has been no indication whatsoever they're actually mining.
Their entire setup is based around hiding where the coins come from.
From the way they allocate "mining rewards" (formula based instead of based on actual blocks mined) to the way they pay out (sending coins through a mixer first).

All they have (and really need for this setup to work) is a website that keeps track of fake hashrates and what to pay out.
They pay out to appear legitimate, and the amount they pay out is only a really small fraction of what a costumer paid to get in.
Then they'll just keep upping their hashrate and sucker new "customers" into their scam, and only pay them fractions of the money they gave em as well.

They're running a ponzi that is sustainable even without a very high rate of new customers.
Which is why they'll keep this scam up for as long as they can.

Hell, even if they intended to be legitimate, actually mining is simply less profitable.
Why take a small profit margin, when you can take a large margin and still be able to pay out all your customers?