Speed Mine Review is SpeedMine.net a Scam or Legit Cloud Mining Platform

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Bitcoin Cloud Mining

Want to find the best Bitcoin cloud mining contracts? This post has you covered.

Most Bitcoin Cloud Mining Companies are Scams

Like the heading says, most cloud mining contracts are scams. Why?

Because it’s easy for companies to take peoples’ money, and then not pay out. A company can claim to be a cloud mining company without any proof of actually owning any hardware.

So remember: 99% of cloud mining companies are scams.

Quick Tip

Mining is not the fastest way to buy bitcoins.

Which Companies Are Not Scams?

We can’t recommend any cloud mining companies at this time.

Note: If you do find one, you’ll need a wallet to receive payouts to. A secure hardware wallet like the Ledger Nano X is a good option.

Is Cloud Mining Profitable?

It depends what your goals are with cloud mining. If your goal is to obtain bitcoins, then there is really no reason to cloud mine or even mine at all.

You will get more bitcoins for your buck if you just buy bitcoins!

If you think mining is cool and want to try, then cloud mining still is not a good option. Grab a cheap USB miner and run it at home.

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VPNs for Mining

As a Bitcoin miner, you may also want to look into getting a VPN.

You can never have enough security when it comes to bitcoin. Using a VPN adds an extra layer of security.

Bitcoin Cloud Mining Comparison

There is not much to compare, because we personally do not recommend buying any cloud mining contracts so we will not spend the time to compare the two companies above.

But check back in to see if we find any new, legit cloud mining companies.

Bitcoin Cloud Mining Scams History

The reason there are so many cloud mining scams is because it is very easy for anyone in the world to setup a website.

Once the website is setup it can claim that the company has a large mining facility.

The company can act legit by sending initial payments to its customers. But after that it can just keep the already received payments for hash power and then make no further payments.

In just the last few months, two cloud mining scams were uncovered: HashOcean and Bitcoin Cloud Services.

What Payment Methods do Cloud Mining Companies Accept?

Most cloud mining companies accept Bitcoin, PayPal, and credit cards. If a cloud mining company accepts bitcoins then there is a good chance it is a scam.

This is because Bitcoin payments cannot be reversed. Once the scam company receives your bitcoin payment you have no way to get your coins back.

Are there Free Cloud Mining Trials?

No company would give away free cloud mining; this is basically giving away free money.

Any company offering free trials, especially if they require payment information, is most likely a scam.

Quick Tip

Mining or buying bitcoins? You can’t do either without a Bitcoin wallet.

Our guide on the best bitcoin wallets will help you pick one. Read it here!

How does Bitcoin Cloud Mining Work?

Cloud mining means a host company owns Bitcoin mining hardware and runs it at a warehouse.

You pay the company and rent out some of the hardware. Based on the amount of hash power you rent, you will earn a share of payments from the cloud mining company for any revenue generated by the hash power you purchased.

Cloud Mining Viruses

There have been viruses that land on computers and then use the computers’ power to mine bitcoins.

Run a malware detector on your computer if you think you may have come under attack.

Is Mining Software the Same as Cloud Mining?

Mining software is something you download on your computer. It is required when you OWN mining hardware. Software connects your hardware to the internet so that it can make hashes and communicate with the network.

Just buy Bitcoins!

If you just want bitcoins, don’t bother with cloud mining. Just find an exchange in your country and buy some bitcoins.

Learn More

Best Bitcoin Mining Software

Best Bitcoin Mining Hardware

Best Bitcoin Mining Pools

Disclaimer: Buy Bitcoin Worldwide is not offering, promoting, or encouraging the purchase, sale, or trade of any security or commodity. Buy Bitcoin Worldwide is for educational purposes only. Every visitor to Buy Bitcoin Worldwide should consult a professional financial advisor before engaging in such practices. Buy Bitcoin Worldwide, nor any of its owners, employees or agents, are licensed broker-dealers, investment advisors, or hold any relevant distinction or title with respect to investing. Buy Bitcoin Worldwide does not promote, facilitate or engage in futures, options contracts or any other form of derivatives trading.

Buy Bitcoin Worldwide does not offer legal advice. Any such advice should be sought independently of visiting Buy Bitcoin Worldwide. Only a legal professional can offer legal advice and Buy Bitcoin Worldwide offers no such advice with respect to the contents of its website.

Buy Bitcoin Worldwide receives compensation with respect to its referrals for out-bound crypto exchanges and crypto wallet websites.

Wallabit Media LLC and/or its owner/writers own Bitcoin.

A Beginner’s Guide to Bitcoin Cloud Mining

By: Ofir Beigel | Last updated: 11/13/19

Cloud mining is a general term given for sites that charge a monthly fee in exchange for mining cryptocurrency for you. In this post I’ll cover what cloud mining is in detail and expose the truth about its profitability.

Cloud Mining Summary

Cloud mining is a term describing companies that allow you to rent mining hardware they operate and maintain in exchange for a fixed fee and a share of the revenue you’ll make. It basically means that you can mine remotely without the need for buying expensive mining hardware.

Most, if not all, cloud mining companies today are either plain scams or work through an ineffective business model. By ineffective I mean that you will either lose money or earn less than you would have by just buying and holding Bitcoins.

That’s cloud mining in a nutshell. If you want a more detailed review about cloud mining and a specific profitability analysis, keep on reading. Here’s what I’ll cover:

1. How Does Cloud Mining Work?

Since mining Bitcoins at home is so incredibly expensive many people are looking for cheaper solutions that don’t involve buying hardware that eats up electricity and will quickly become outdated.

In light of this, cloud mining seems like the perfect solution: You “rent” hash power from miners that are located in a remote, cool location. The cloud mining company takes care of maintaining the miners and you share the revenues of the operation.

If you google the term “cloud mining” you’ll find endless possibilities to jump on board. Most of these website will show you tons of confusing numbers (especially if you’re a newbie) and promise that cloud mining is “the easiest and most efficient way to earn Bitcoins”.

So everything looks OK, except you can’t always rely on these companies to deliver on their promise.

2. Best Cloud Mining Services

It’s hard to recommend a specific cloud mining company since these companies are more often than not complete scams. However, there are some legit options out there.

Legit cloud mining companies

When I say legit, I don’t mean profitable or reputable, I’m only referring to the fact that they actually own hardware and mine Bitcoins.

Three known examples are Genesis Mining, Bitclub Network and Hashflare. However, I’ve taken a deeper look at all of these companies and in each one there are huge red flags that come up.

Lose Lose Situation

The main model legit cloud mining companies use is a “lose lose” paradigm. If Bitcoin goes up in price you’ll earn less than if you just bought it. If it goes down – you won’t earn anything and you’ll probably lose the money you’ve invested.

I’ve written about it extensively here in the past but here’s how it works in a nutshell:

Aside from the cloud mining contract payment which is usually a fixed sum, companies charge a maintenance fee. The maintenance fee is the cost of running the mining hardware, cooling it, storing it, etc. The maintenance fee is usually calculated in USD per mining power unit (e.g. $0.14/TH).

Since mining revenue is accumulated in Bitcoin and maintenance fees are paid in fiat, if Bitcoin’s price falls the revenue might not be enough to cover the ongoing maintenance. In that case, the company will just terminate your mining contract without any refund.

Here’s an exact quote from Genesis mining:

In the event of a contract becoming unprofitable (i.e. the payout can’t cover the maintenance fee), the resulting daily payout will be zero. After that, the contract will continue to mine for 60 days….If the contract does not return to profitability in this period it will be terminated….

On the other hand, if Bitcoin’s price shoots to the moon, the mining difficulty usually goes up as well, making your miners less profitable. To sum it up, in both cases you’re probably better off just buying and holding Bitcoins. You’ll either lose less or earn more.

If you do a quick search online or even read my own reviews about these companies, you’ll find a large amount of testimonials from people who got their contracts terminated during the long crypto winter that started in 2020.

Scam cloud mining companies

Aside from legit cloud mining companies, we also have complete scams. When Bitcoin started to gain momentum, a lot of ponzi schemes came to play, with the most famous ones being Bitcoin Savings and Trust, Bitconnect and OneCoin.

Another name for Ponzi is “Pyramid Scheme”. It’s a type of investment scheme where you need to invest money in order to participate. The people who came in first get paid by the ones that came after. Eventually the payouts stop for some reason and the people at the bottom of the pyramid are left with nothing.

In my opinion (and in the opinion of respected others as well) most of the cloud mining companies are plain Ponzi schemes. Meaning these companies don’t actually have any mining rigs set out in a remote location and the money that you pay is used for paying out older customers and the company itself.

Most people won’t press charges when a few hundred dollars are stolen from them, so when the company goes bankrupt or just plain vanishes, all that is left are a bunch of angry people. Hey, it happened to me as well…

4. Do Your Own Research

If you’re still not convinced and want to go down the road of cloud mining, make sure to conduct ample research before pulling out your wallet. Here’s what I suggest:

look for References

For almost every fraudulent website on the web there’s someone who already posted about it. Either search BitcoinTalk for information about that company or go to BadBitocin for a list of the well known scams.

If you’ve already been scammed and couldn’t find any reference, I advise posting on one of these sites to help other users out.

Don’t Invest More Than You Can Afford to Lose

Probably the most important tip – if you’re going to get into cloud mining, do it little by little, and NEVER (and I mean NEVER) invest more than you can afford to lose. The way most of these companies work is that they lure you in, little by little, and once you get the big money in they close down without any notice.

The Bitcoin Scam Test

I’ve developed our own methodology for inspecting different Bitcoin related sites. It’s a series of questions that will eventually give you a pretty good idea if the site you’re looking at is a scam or not. You can take the test here.

5. Conclusion – Is Cloud Mining Profitable?

If you want my advice – stay away from cloud mining. There are too many question marks around this area to make it legit.

I think that if you’re serious about investing in Bitcoin then you’re better off buying Bitcoin and holding rather than mining it.

If you’ve had your own experience with cloud mining I’d love to hear about it in the comments section below.

HashFlare Review: Is This Cloud Mining Platform Legit?

By: Ofir Beigel | Last updated: 11/14/19

HashFlare is a cloud mining service with a somewhat shaky history and a shady reputation. In this post, I’ll examine the company in-depth and tell you what you need to know before signing up to it.

HashFlare Review Summary

HashFlare is a cloud mining company that used to supply various mining contracts. Recently it seems to have gone out of business. This review breaks down the math, in order to prove that cloud mining with HashFlare isn’t a wise investment.

That’s HashFlare in a nutshell. If you want a more detailed review keep on reading, here’s what I’ll cover:

1. Cloud Mining in a Nutshell

Cloud mining is the process of “mining from afar”; Instead of buying a Bitcoin miner, storing it, configuring it, and cooling it (which costs a lot of money and consumes time), you “rent” a miner and have someone run it for you. You then split whatever profits that miner makes with the service provider.

My main criticism about cloud mining companies is that the majority of them are just Ponzi schemes in disguise.

They take your money, but they don’t actually buy and run miners for you. They just keep on paying you from new users that come onboard until all of a sudden, they disappear (as can be seen here, here, and here).

However, not all cloud mining companies are complete scams. Some are just bad investments.

Not long ago, I reviewed one of the most popular cloud mining platforms around: Genesis Mining. I tried to establish whether it would be a profitable investment instead of just buying Bitcoins and holding them (aka hodling).

The bottom line was that the company seemed legit (i.e. they were actually mining), but I doubted whether it would be a good investment, considering the alternative of just hodling, a strategy that has proven to be profitable over 92% of the times.

2. Hashflare Overview

HashFlare is a company owned by another company of crypto experts called HashCoins. While in the past you could actually see who the team members were on the “About” page, the company has since removed any personal information about who runs the company. Luckily, the Internet never forgets.

The website seems to have launched its services somewhere around the beginning of 2020, and since then it has grown immensely. The current rough estimate is that the site has around 1 million visitors each month.

The company itself, Hashflare LP, was registered in the United Kingdom in late 2020. HashCoins or Hashcoins OÜ was founded in 2020 in Tallinn, Estonia.

3. HashFlare Services

Important Note

Up until July 2020 the company continued to offer different mining contracts, however, today it seems that no more new contracts are available for purchase.

This review was written initially in mid 2020. I will leave the info unrevised for your consideration.

HashFlare Mining Contracts

HashFlare allows you to buy three different types of cloud mining power (also known as Hashrate). Sha256 is used mainly for mining Bitcoin, Scrypt can be used for mining Litecoin, and ETHASH is used for mining Ethereum and Ethereum classic.

For the purpose of this review, I’ll focus only on Bitcoin cloud mining, but the same process can be applied to any other mining algorithm.

4. Is HashFlare Profitable?

The most efficient miner today for mining Bitcoin is the Antminer S9 (true for mid 2020, today there’s the Antminer S17). It produces

13 Th/s of mining power.

Buying the equivalent of this on HashFlare would cost you $1,040 per year. Buying the actual miner would cost you

This actually makes sense because if you bought just the miner, you’d have additional expenses on electricity, cooling, and storage. However, the actual miner doesn’t charge anything after a year, and HashFlare does.

Using a Bitcoin mining calculator, I found that 13 Th/s in a “vacuum environment” (meaning no electricity costs, no mining pool fees, etc.) will produce $222 each month.

Seems pretty profitable – I’ll probably break even within five to six months. However, I haven’t calculated the MEF (maintenance and electricity fees) yet.

The MEF is linear and equals 0.0035 USD per every 10 GH/s of SHA-256. This means that for 13 Th/s, it would cost $4.55 daily or $136.5 monthly. So each month, we’re actually making $85.5.

A simple calculation of HashFlare profits would be something like this:

$85.5 *12 – $1,040 = -$14 per year

Wait, what? I’m actually losing money each year?

Payments are made to HashFlare in USD, but payouts are received in BTC. In the example above, I treated the Bitcoin exchange rate as constant. If this is actually the case, then yes, I’ll lose money.

However, if the BTC price rises, then we could say that I paid less but the payouts were worth more. Or could we?

Hashflare profitability if BTC goes up

As price goes up, more people start mining Bitcoin. This means that it becomes more difficult to turn a profit, and income is actually reduced.

So while I’m earning more dollars (since each BTC payout is worth more), I’m making less BTC in total. There’s a strong correlation between price and mining difficulty, so I assume that they cancel each other out.

Hashflare profitability if BTC goes down

The funny thing is that even when Bitcoin’s price drops, difficulty can still increase. As you can see in the graph below, there have been only a handful of occasions on which the network’s difficulty has dropped, and some of these cases weren’t even related to price (e.g., one drop is attributed to miners switching over to Bitcoin Cash when it came out).

But here’s the real interesting part, which isn’t unique to HashFlare and can be found in almost every cloud mining company. If you look at their terms of service, you’ll find the following:

5.2. The Contract Term for HashFlare.io Cloud Machines is unlimited by default, unless stated otherwise. The Contract is valid while profitable, until expired or until terminated (refer to section 13), whichever comes first.

13.1. Without limiting any other rights we have, we may suspend or terminate access to your Account, the Website and/or the Service, nullify your Account Balance and/or hold the ability to withdraw mined funds if you breach any of these Terms of Service.

This basically means that if the price drops to a point at which you’re not making money at all, your contract will be terminated. Bitcoin has seen 80% price drops in the past, and that could seriously affect profitability.

HashFlare Isn’t a Good Investment

Considering the above, it seems that no matter what happens to Bitcoin’s price, HashFlare isn’t a very wise investment. Indeed, on July 2020 HashFlare announced that that it is stopping its mining services and shutting down hardware on current SHA-256 contracts due to difficulty generating revenue.

The alternative, hodling, makes a lot more sense in my opinion. In this case, if Bitcoin goes up, you’re making a profit, and if it drops, you still have your coins. No one can “terminate” your bitcoins in the same way your cloud mining contract can be terminated.

5. Public Opinion and Reviews

While I have my mind made up about HashFlare, I make a habit of cross-checking with additional online reviews. However, since HashFlare has a referral program (i.e. you get paid for every customer you bring onboard), reviews should be taken with a grain of salt.

It seems like there’s a wide array of negative reviews about the company. Additionally, review site TrustPilot states that their customised software has discovered a large number of fake positive reviews on HashFlare and it has since removed them.

Most negative reviews complain about profitability, and some complain about the site being a complete Ponzi scheme, including the use of fake customer reviews as seen below and having virtually no customer support.

6. Conclusion – Is HashFlare legit?

If I had to give a short answer, I’d say that while the company might be legit it’s NOT a good investment. There’s a thin line on the web between what constitutes a total scam and what’s considered to be just a bad investment opportunity.

I’m not as deterred by the bad reviews as I am by the simple math that just makes it seem impossible to actually profit with HashFlare.

Perhaps a different coin/algorithm will yield better results – you can use the same process I did for Bitcoin on any other crypto HashFlare offers and see for yourself.

In the past, I heard someone make a very amusing statement that summarizes this review perfectly:

“Cloud mining companies are basically taking your money today so they can slowly give you less of it back tomorrow.”

Personally, I wouldn’t invest my money in HashFlare, but in the end, I encourage you to do your own due diligence. Keep in mind that this post shouldn’t be taken as investment advice, it’s just my own research about another investment option in the crypto universe.

Have you had any experience with HashFlare? I would love to hear about it in the comment section below.

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