Quote from: moriartypants on March 19, 2014, 02:03:34 PM

I don't disagree with anything BigRedBrent said.

I think I say in my original post in this thread that I realize it could be a long term scam.

I will say that one difference between this and a traditional ponzi is that this service has a real utility to the user in that it protects you from bitcoin volatility. (A Ponzi just prevents you from spending all of your money at once.)

Another difference is that traditional ponzi operators usually don't have a printing press in their basement and a license to use it. Of course, it could be possible that bitcoin-trader.biz's mining operations could be far less than what their shares would seem to represent or even entirely fictional.

Now, I don't know much about mining. However, if someone else were to contact them and ask intelligent inquiries about their equipment, I would love to hear the responses. I'd even volunteer to do the contact if someone would pm the questions to ask.

It would also be a good time to once again bring up that Mr. Brandenburg claimed that they will be present at the Toronto Bitcoin Expo next month. I would really appreciate if anyone went and found out if this were true. Anyone here in the Toronto area at that time?

They claim to have 10TH (https://bitcoin-trader.biz/mining.php) of mining gear with new additions coming frequently. If they've sold 1700 mining shares they should have $170,000. That's plenty of cash to put together a very large mining operation. Well in excess of 10TH/s. Even at absurd ebay rates you could get 20-40TH/s with 170k. If they got in on a early stage preorder then they could have a considerable farm built up. They need to stretch your mining share over a year though so may stagger equipment purchases to get the best bang for the buck.

10000/1700 = 6GH/s per user

Their bitcoin mining profits seem roughly consistent with their payouts, using https://bitcoinwisdom.com/bitcoin/calculator

0 diff (This isn't realistic just looking at current data/difficulty)
0 electricity
0 pool fee

8GH/s hash rate (Current mining share rate)
100 hardware
0 power/watts
1 start day

Should net around .58 USD a day, the calculator is generally a little on the cautious side from what I've seen.

They list their current mining earnings at .63%(100$/share), so not overshot by a large margin.

Whether or not they actually have any equipment is speculative of course but given the numbers provided it's possible.

Sukarti

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