There are many mining frauds going on and Ankur Agar
wal shares Bitcoin mining scam opinion with us. He is an ICO investor and an Email Marketing expert.
Bitcoin was first found about half a decade ago when a group of an unknown individual called Santosh Nakamura formed a virtual currency noded through Blockchain technology.
The Blockchain technology caters to all the transactions happening in real time in the single book.
This is said to be the most efficient way of recording transactions without any error and hassle.
Bitcoin came into limelight twice, once when it's valued Rose by 1000% within the first week of launch and second when it's valued went to $20,000 by the end of 2017.
There is around 10-20 new type of currencies found every month and cryptocurrency as a market is of more than 100k coins with different values. Amongst those 100k coins, Bitcoin as fetched the limelight and major investment.
Bitcoin Mining is a Scam or Not is one of the most common questions that many Bitcoin enthusiasts have in their mind. And the answer to this question always has been a complicated one.
Bitcoin mining is the procedure by which exchanges are confirmed and added to people in general record, known as the blockchain, and furthermore the methods through which new bitcoin are discharged.
Anybody with access to the web and reasonable equipment can take an interest in mining.
The measure of new bitcoin discharged with each mined block is known as the block compensate. The block compensate is split every 210,000 blocks, or roughly like clockwork.
The block remunerate began at 50 out of 2009, is currently 12.5 out of 2018, and will keep on diminishing. This reducing block reward will result in an aggregate arrival of bitcoin that approaches 21 million.
The Bitcoin mining process is a complex mathematical equation are solved by the Bitcoin Miners. And in exchange for rewards, we get new bitcoins.
These equations validate the transactions in the blockchain and ensure that all the requirements are there so no double spending can occur.
Even nowadays we are seeing quite a lot of cloud mining companies that changes us a small fee in return of mining bitcoin.
As a result, an individual doesn’t need to make an expensive machine to bitcoin. Instead, they can use the cloud platform to do so. And this is where the scam comes under the light.
The mining process and the currency has been termed as legal and illegal respectively in some countries; this helps us to come on a point whether bitcoin mining is a scam or not. The question will only be fully answered when one of the top globe based organization forms a unity amongst economies and takes action either positive or negative.
There are quite a lot of cloud mining websites are exists. These websites state that they are offering cloud mining services without asking for any cryptocurrency fee in return. In this case, you as a user need to purchase their services costing more than the expected payouts.
After that, the website will pay you for a quite sometimes. But after that, the cloud mining company will stop paying you, and your funds will get disappeared. Some of the well-known cloud mining scams are the Hashinvest, Hashpoke, Cointellect, GAW Miners and HashOcean.
Even if you choose to mine bitcoin from your hardware, there are no such promises that you are going to be the next big Bitcoin billionaire. First of all, mining bitcoins costs you a hell lot of money.
You have to build expensive machines, you have to spend a hell lot of money on your electricity bill and so on.
And in the end, the payout won’t even pay for your expenses. However, yes there was a time when bitcoin mining was profitable. Even some so many people did it.
But from today’s perspective, mining Bitcoin does not seem profitable at all. So in the end, you cannot say that Bitcoin mining is a scam, but it is unprofitable for sure.
Tanmay is a PR Freelancer who works with 100+ sites from all over the globe