Experts told about the problems associated with cloud mining

Despite its growing popularity, cloud mining is perceived by many experts as a fraudulent scheme. What is the problem with renting computing power for cryptocurrency mining?

According to analysts, specialized companies promise big earnings and significant profits with the complete absence of any risks. However, after checking, many cloud mining services turn out to be just a Ponzi scheme, when investors make profits at the expense of new participants. 

Another reason, which has clear signs of fraud, is that data on cloud-mining transactions is not disclosed. Customers simply lack transparency as to the amount of energy and equipment on which the work is done. Without knowing that, it is impossible to understand whether the company is mining cryptocurrencies or the users’ funds are used for other purposes. 

The main problems of cloud mining according to experts include the fact that the cost of maintaining data centers is much higher than the profit from the obtained cryptocurrencies. Experts urge a careful study of a company’s operations before investing in such processes.