Cloud Mining Explained

Mining is all the rage. Well, Bitcoin is all the rage, and by default mining is right behind it. Everywhere you look in the news and other places mining for Bitcoins is being discussed. With than many companies have popped up with great claims and selling all kinds of mining hardware and solutions. Everyone is looking to make a quick buck. One of the most recent trends is companies selling “Cloud Mining” services. Basically companies that rent mining hardware to you and take the vast majority of your profits. This might be OK for some who want to play, but there are some serious scams out there using this idea. Cloudminer.biz is a scam. One of the latest ideas to con people out of their money.

Before I explain why CloudMiner.biz is a scam, let’s take just a quick second to understand what cloud mining is in the first place.

People all over the world, including executives at Fortune 500 companies are looking to “the cloud” as a way to save money. They think of things like iCloud and Facetime, mostly free services from big companies and think the cloud itself is free! They don’t realize they paid for all of this in the price of their device. An iPhone doesn’t really cost $1000. In fact, it costs less than $200. The rest goes to profit and services.

The Cloud in General Explained

The cloud is actually nothing more than someone else’s computer that you’re paying a monthly fee to rent. Amazon for example will rent web servers for $25 to $100,000 a month depending on how powerful of one you need. For small companies this makes a ton of sense. No need to invest in connectivity, air conditioning, backup power, etc for a few servers. Amazon already has that. For larger shops, the cloud rarely makes much sense.

Cloud Mining

Cloud mining is the exact same principle. A company buys a bunch of mining equipment and sets up a data center (if you’re lucky) and installs all of the hardware. They manage it, repair it, apply security patches, and keep it updated with the latest most stable software (again, if you’re lucky). They then rent this hardware to miners. Rather than paying $2500 or more to buy a mining compute, you can pay a monthly fee to use their hardware.

Cloud Mining is a Terrible Idea

But cloud mining is a terrible idea as an investor. If a company has the money to buy hundreds of thousands of dollars of mining hardware and install it in a data center, then develop and maintain all the management platforms, billing software, etc. why would they rent it to you? They could make far more money far faster by using it mine cryptocurrency for themselves!

Even if the company couldn’t do this, they would still need to charge you enough to cover all of their hardware, development fees, and labor. Which means at the end of the day, there is literally no way you’re getting a good deal. You have a snowballs chance in hell at making money cloud mining unless the coin prices shoot through the roof after you sign up. And I’d bet money the cloud mining company cancels your contract if that happens.

CloudMiner.biz is a SCAM!

Which finally brings us to our main event. Cloud mining scammers. Many of these so called cloud mining services are an outright scam. They aren’t even attempting to be even slightly legit. They have one purpose and one purpose alone. To steal your hard earned cash. Cloudminer.biz is a scam!

There are numerous videos pointing out that this company has never paid them. But you don’t even need to sign up to see they are completely dishonest from the get go.

The bottom of their site is plastered with reviews from customers. Except every single one of those customers is totally a fake. The pictures are not even stock photos. CloudMiner.biz is a scam to the point they don’t even bother to pay for stock photos! They stole the photos from public websites, and some of the people are actually semi-famous enough to recognize!

Let’s take this review from Chloe Morningstar. Where she says that CloudMiner.biz made her a $100K.

“I’ve been a member of the cloudminer for only 47 days. But my life has already changed! Not only have I made my first $100k, but I’ve also met some of the most incredible people in the process. Thanks, Mike!” – Chloe Morningstar

All it takes is a simple right click of her picture and select “Search Google for Image” to find out that’s not her name and she never wrote this review.

This quick search reveals her actual name is Adelle Charles, Director of User Experience for a media company. This review is faker than a Bill Clinton two dollar bill.

You can follow that up by searching the images of the other four reviews on their homepage and immediately discover that they all too are stolen profile pictures from numerous pages around the web from people with completely different names.

Yep. CloudMiner.biz is scam! Steer clear.

Update 02/01/2017

Someone from the same range of IP addresses in the same country keeps posting positive comments saying they are getting paid. The English is bad in all of the same ways. The email addresses are from fake accounts or do not exist. They are captured by my comment SPAM filters, but I just thought I would pass it along to the readers of this article to watch out for these comments below in case one slips through.