Recently I got into an argument on the FaucetHub chat about Genesis Mining. The guy there, Megadump (it is easy to find his blog), claimed that he got paid, I quote, “HANDSOMELY” by Genesis Mining. I jumped in and said that it is not fair to promote something that does not live up to the claim and that he has to prove that this is the case when making such claims about cloud mining. I say this simply because cloud mining is largely a huge scam, one that is designed in a perfect way to make you think that you are going to make money when the truth is that you lose money on the long run.
What was interesting was that I got ignored by a few people because I was being “negative” and people generally dismissed the validity of what I asked for: “prove that what you say is true”.
I do not care about payment proofs or anything like that but when you promote something that is well-known as not being as it is marketed you should be able to prove that the rest of the world is wrong. If you take a look at reviews about cloud mining sites, including Genesis Mining, you will see that they are labeled as scams.
To be honest, these sites are not actually scams. You do get to buy some hash power and you do get Bitcoin. The problem is that on the long run you almost always lose money because of different reasons:
- There is a maintenance fee that you pay to mine through them – that maintenance fee keeps growing, the contract is eventually labeled as being unprofitable and it is canceled. When this happens you are not at the level at which you get back the money you initially paid.
- Mining becomes more difficult – the hash rate you have at the moment brings in X satoshi. Next month that hash power will bring in less satoshi as it becomes more difficult to mine Bitcoin.
To sum up, as time passes you earn less and less and maintenance fees end up being higher and higher.
Getting back to the subject at hand, I eventually left the conversation since people do not really want to see negatives about programs that are promoted by someone as being good. People want to think that they could make money.
The big problem with many Bitcoin related programs on the internet is that if you sign up and you make the investment, the person that referred you makes money. At the end of the day, if that person brings in enough people, they are going to end up in profit. If you do not do the same you are going to lose money. You are not told this about many since the industry is a little new. Unfortunately, the big scammers in the MLM, Ponzi, HYIP and so on industries are now chipping in. They bring in a huge scamming experience and people fall victims. You fall a victim.
What Should You Do?
Always research any deal that you find and any offer, especially when they seem too good to be true. If anyone offers you something great for a payment, see what you actually get.
Conducting a proper research can take a lot of time but there is one thing that you can do. Simply Google the name of the program, add “review” and see what comes up. If we look at Genesis Mining, here is what we get:
- Buy Bitcoin Worldwide Review – “There have been serious concerns of whether Genesis Mining is legit or a scam but after doing research it is quite clear that it is not a scam; that does not mean Genesis Mining is profitable, but means that Genesis Mining honestly provides the services it offers.”
- 99 Bitcoins Review – “The company seems legit but I doubt if it’s a good investment.”
- BitTrust Review – In this case you want to read descriptions made by people, which are largely negative.
- Trust Pilot Review – Mixed reviews. Read both positives and negatives.
- Bitcoin Talk Genesis Mining Scam Alert Thread – Different replies but the main thread starts with this: “This company is scamming people on purpose: they are selling contracts knowing their customers won’t get any return on their investment.”
If you keep looking you will see the general thought process and numerous proof that people do not actually make money. From time to time you will see some praising Genesis Mining but this is usually a sign that they want to promote some sort of deal for some sort of affiliate commission somewhere.
It is up to you to come up with your own conclusion but when you do have a conclusion it is your responsibility too to talk about it if you see someone saying that something is true when the reality is completely different.
I would like you to also read an article I wrote some time ago called “Being Overly Optimistic Will Hurt Your Chances To Be Successful In Business”. It is tied with what happened in the FaucetHub chat. People want to believe and there is this overly optimistic approach noticeable in the entire crypto industry at the level at which you most likely are (just starting to make some money). People invest in anything that promises something great when it comes to crypto currencies. This is not a good approach and will only cause you to lose money in the future.
Always be REALISTIC in anything related to making money online, including crypto investments.