Hello Steemers!
For my first Steem post, I have decided to post something a bit informative with a little bit of personal opinion on today's Mining world and what to watch out for. But anyways, let's get down to business shall we?
So in my hunt for furthering my ways of making passive income, I have decided to step into the world of Cloud Mining.
For those who don't know what that is, Cloud Mining is a way to mine cryptocurrency without having to purchase, run, or maintain the good old, noisy and electricity-guzzling miners. Instead, it works by donating any amount of cash to a dedicated mining farm anywhere in the world. You give them your money, they give you an allocation of mining power from their facility.
This has been perceived by many as a scam, or a 'too good to be true' type of situation, but in my opinion, it's a very concrete way of making passive, even untaxable income. NOW, I have to add that there has been quite a lot of opportunists flooding the market. We saw Aurora Hash, a new website that came up recently promising users extremely high-interest rates, and that their money would just grow forever, at least until the internet is shut off.
Unfortunately, a lot of people bought into it with high volumes of investment, thinking that this would be their big break. Aurora Hash was online for a little less than a month, and those who dropped large sums of money, saw it disappear, along with the website.
NOW, I'm not here to scare everyone away from cloud mining, because I personally have large sums of money in companies that have been around for a while now and have provided me and many others with decent passive income such as Bitconnect, Genesis Mining or Hash24.
If you have an interest in diving into the mining world, I advise you go with the more robust, and longer living platforms like the ones I stated above: Bitconnect, Genesis Mining (been around since 2014) to name a few.
The real danger and volatility lies in the new mining sites, that pose with those "too good to be true" numbers like 14% lifetime referrals or over 10% daily interest in your investment for example. But the one key to spotting these is to see if they're even part of the blockchain. How can any of these sites even make any money from not being in the blockchain you ask?
Well, in the finance world outside of crypto, we call these things High Yield Investment Opportunities and basically how this works is as follows:
Draw people in with numbers that are too good to be true
Pay them with the old money from the last scam so people keep inverting higher and higher amounts of capital
As soon as it's not profitable to run the old money to new scam because people aren't putting any more capital in, it closes
4.Start over
Although, I'm not going to lie, these new ones are another great way to make quick money with very little investment, or through having a strong referral system under you, but you should USE THEM AT YOUR OWN RISK! We never know how long these new mining sites will be up, or if they're even part of the blockchain at all. It's best to be careful and not invest large sums of money because many of us have had to learn the hard way, walking away with nothing. With that being said, there is a lot of quick money to be made if you know how to work around these scams and are prepared for them to close at any time. Quantum Hash and Hashflare are some of those that slightly raises the alarm due to how new they are. It's hard to predict how long they'll be around, but truth be told, some people are making some good money off cloud mining and its lesser parts.
Thanks for reading and I hope this post provided knowledge for some, and saved & made money for others
If you'd like to jump in and get some discounts on these platforms, below are my referral links!
HASHFLARE.IO https://hashflare.io/r/4F8B10A7
QUANTUM HASH https://q-advert.org/?ref=144784
BITCONNECT https://bitconnect.co/?ref=alexenglish
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