Are all “hosted mining” services necessarily scams?

In 2014 or something, I paid a smaller sum of money to some company called “Cloudhashing” or something, which claimed that I was renting part of their Bitcoin mining pool and all I had to do was to pay that little sum and then wait for the coins to roll in.

I never got a single satoshi, as you can imagine.

But ever since then, I’ve seen numerous services where you apparently can pay a large amount of money to “rent a miner” which they host/set up, basically the exact same setup as the scam I fell for. That is, I’m not buying a miner that they ship to me which I then plug into my own local power. I never see/care about the unit; it’s “abstracted away” from me in the same manner that a “webhost” account is something abstract to me versus ordering a physical server which I keep running in my wardrobe.

It seems to me that it would indeed be possible for such a service to not be a scam. I mean, the argument usually goes like:

If they can just mine themselves and make more money, why would they sell this to you?

I get that argument, but at the same time, what if they don’t have the money up-front to pay for that extra miner (or part of it) unless I give them my money? Does it not make sense that they use the customers’ money to legitimately order more miners and have them set up in their optimized facility with cheap power and whatnot, which I could never do at home? Isn’t it a much more efficient setup that I simply pay them to enable them to add hashing power and then both of us make money, versus me ordering a soon-outdated mining unit which I cannot run here anyway?

What am I missing? Are there non-scam mining services? I want to make Bitcoin but I’m not going to waste any more money on scams.

Scams Encountered

What kind of scams have you, your friends or family encountered?

My dad had someone talk his way into his home saying he was from the utility company and the guy kept him busy while another guy rummaged through the house. Nothing was taken and my dad now has a good security system and uses that before answering the door.

A friend of mine tried to sell a wedding dress and almost got completely scammed by someone saying they needed the dress asap for their daughter and could it be sent…

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fraud – Bitcoin exchange scams

Can any exchange offer more price for same coin? No. Bitniex is doing so, why? Just to scam people. Once a person deposit coins and sell here he can’t get back his exchanged money. Bitniex has no right to detain anyone’s coins because it is an exchange and asks people to come and exchange. If this exchange has problem with transfer coins to specific wallet addresses it should warn before transactions or may charge extra fees. It can’t freeze any body account and coins.
What do you think about bitniex exchange?

❓ASK – How do you Avoid investment/ICO scams? | Proxies-free

LTC-hunter, this is my simple opinion on your question. Avoid ICO. Key in to airdrops and bounty from legitimate company. I have invested in many ICO, and at last the coins dropped drastically compare to initial coin offer! Some of these company are: polybius, they sold at 10$ per coin. Immediately after the ICO, the price dropped to less than a cent. Imaging someone bought 1000$, what will be the loss!!
Also, Abjcoin ICO failed me. A lot of pump after ICO, Abj coin finally failed.
So, start with airdrops and bounty . Or you can find legit mining companies to invest your $$$$.
Good luck.

CEO gydezhost inc.

❕NEWS – Hacker hacks celebrities twitter accounts and scams their followers | Proxies-free

People easily get scammed because they are gullible or greedy. How do you expect Obama to ask you to send him BTC and he double it- that should sound odd and should have been seen as red flag

this didn’t happen only with obamas account, a lot of presidents and rich people accounts got hacked too, the hacker went really crazy mode with that

I read this news early this morning . was astonished on the stupidity of the people that fell to the plot .
I mean , imagine some like bill gate asking you to send bitcoin and receive double . that’s odd .

well it sounds fishy for people that are quite old in online money making domain, but people lost a lot of money in this pandemic, so that was the hacker’s chance to scam people

$435 Million Lost to Scams in Australia in 2019 – Forex News & Analysis

The Australian Competition and Consumer commission publishes data every year about how much have Australians lost to scams and they finally published the data for last year.  According to that data, Australian citizens have lost a whopping $435.2 million (AUD $624 million) to scams.

The data was gathered by several different organizations – Scamwatch, ANZ, Commonwealth Bank, NAB, Westpac and others.

The losses for 2019 are 34% more than the losses in 2018, which were AUD $489 million. That said, last year there were 5% fewer scam reports than they were in 2018. Out of the $634 million Australians lost a shocking $126 million to investment scams alone, which is a 59% increase compared to investment scam losses for 2018, unfortunately.

Source

I cannot imagine how bad the report for 2020 will be, considering the already existing upward trend and the pandemic this year, which will undoubtedly make this worse.

The Belgian regulator FSMA issued a warning about boiler room scams – Forex News & Analysis

The Belgian financial regulator – the Financial Services and Markets Authority (FSMA) – updated its list of unregulated entities and issued a warning about the new entries as the watchdog believes they are boiler room scams.

The warning lists ABConseils-patrimoine dot com; Takahashi and Partners and Tan Allen Piguet Asset Management.

The FSMA warned that the above-mentioned companies are not allowed to offer investment to traders neither in nor out of the country. The watchdog also urges traders not to have any dealings with said companies.  The FSMA then goes on to warn against responding to so-called cold-calling and not to transfer money to companies registered outside of the country.

Source

It makes sense, really, it’s poor idea to give your money to a company that exists entirely out of the reach of your local law enforcement.

Bitcoin Giveaway Scams! Beware and please read this… | Forum Promotion

I feel like I need to post this everywhere possible because it’s quite an issue and unsuspecting people may fall for it. These appear everywhere and the losses are quite huge because we are dealing with Bitcoin here…
So, I’ve seen some of these for the last few weeks but decided to make this after I got one on YouTube again. These type of scams are mainly on YouTube in the form of livestream.
They usually impersonate someone famous/well-known such as Elon Musk or Jeff Bezos through a video of them in an old conference or interview being played in the livestream to give the false idea of them speaking in real-time and relating to the “giveaway”. It is usually titled “Bitcoin giveaway or Bitcoin exchange”. These livestreams usually make it to the front of people’s YouTube page because bots are used to increase subscriber counts and views to create false authenticity. YouTube does take them down after a while but it’s still too long…
To lure victims further, there may also be a message talking about the “deep economic crisis” in particular due to Coronavirus at this period of time or something along the lines of an how everything is currently unstable and that cryptocurrency is much safer.
It will then offer a “back-bonus system” where you send Bitcoin and they send you back double what you put in and some bonus. Here is an example:

scam.jpg

So hopefully you guys will be aware of these “livestreams” and their nature. It is actually quite sophisticated due to the great lengths they go through. Hopefully this will save someone losing out to such a scam :]