As more and more people become aware of and interested in the digital assets market, one can expect nefarious opportunists to take notice and do the same. Unfortunately, this has been the case for the growing blockchain and crypto market. Not too long ago, we saw many reports of ICO’s (Initial Coin Offering) skating off with investor funds. After gaining traction in the Defi scene, investors kept the possibility of getting “rug pulled” in mind, not to mention the constant threat of exchanges getting hacked.

Now the bad behavior spotlight seems to have shifted focus towards cloud mining. But, IQ Mining seems to be the star of the show. Including many bad reviews from individuals stating how they had lost their funds to the operation.

“Bunch of scammers. Not allowing me to withdraw my funds for the last 6 months. Keep on saying our legal team checking your papers.”.  One Twitter user wrote in a response to one of IQ Mining’s most recent tweets.

A Closer Look At IQ Mining

When one looks into the company, potential investors cant find much verifiable information available. This should be one of the first red flags. From the company’s website, the only intel one gets about IQ Mining and the team behind it is vague, to say the least.

“IQMining was founded at the end of 2016 by a team of experts in blockchain programming and IT engineers. The current members of our altcoins mining team come from different scientific disciplines, but our common faith in cryptocurrencies has brought us together” 

Suspicious background of IQ Mining

And that is the long and short of any description you’ll get from IQ Mining. People can get other useful information from the website. Such as a corporation called IQ Mining operates by a corporation named, Tuwo Limited. This is another potential red flag as the Marshall Islands is a secrecy-prone tax haven state. They don’t keep a public registrar of company shareholders.

In the words of Off-Shoreprotection.com,

“The Marshall Islands has outstanding asset protection legislation and has long declined to collaborate with the OECD on any tax information exchange agreements. Non-Resident Companies are also not required to file audited accounts, annual returns, or submit any financial records, details of its owners or any shareholder of the company, all the details of which are kept confidential.”

This may not be such a good thing for those who have lost their funds. As some of these laws would actively work against their efforts.

Learning our lesson

We’ve probably all heard this one before, “if something seems too good to be true, it usually is”. The only way we can protect ourselves from similar situations in the future is to stay vigilant. Look for the names of people said to be behind a project. Do some background checking where you can, be on the lookout for promises of market-beating returns, and look into them. At this point in time, being aggressive about information gathering is the only way to stay safe.

The post IQ Mining: The Most Talked About Scam In Cloud Mining appeared first on Bizznerd.

Before diving into the nitty-gritty details of the title in its contemporary state. Let’s run a quick recap and explainer of what it is and how we got to where we are today.

Cloud Mining From The Beginning To Now

In the years leading up to the 2017 bull run, the cost of cryptocurrency mining saw a steady and steep increase. That is due to the popularity spike. As the networks grew their user bases the hash rate demands increased. This in turn fueled an ever-increasing appetite for more specialised and more expensive crypto mining equipment. Furthermore, many saw the rise of mining firms like Bitmain as the end of Bitcoin’s freedom from centralized control.

Cloud Mining presented a potential remedy to the soaring costs and plummeting profits for small-scale mining operations. As the crossroads where blockchain-based transaction validation and cloud computing meet. Cloud Mining is intended to lower the financial threshold to entry through a business model. That will allow interested parties to rent the computing power from cloud services.

They offer these services in two distinct packages: Hosted Mining and Leased Hash power agreement. The former being the most popular model of Cloud Mining.

Hosted Mining

In the instance of Hosted Mining, a customer invests towards purchasing or leasing mining hardware that Cloud Mining service’s facility houses and operates. The mining services main responsibility is to ensure that the equipment is always running under optimal conditions, leaving direct control of the digital assets to the customer. The biggest drawback to this business model is the relatively steep cost of entry.

Hash Power Leasing Agreements

The approach here is very straight forward, users pay to lease hash power from a cryptocurrency mining farm and in return take a portion of the mining operations’ overall profits. Those people who are interested Altcoin mining are also usually interested in this form of Cloud Mining.

What To Look Out For

Though the cost reductions associated with Cloud Mining are very attractive, there are a number of potentially serious issues that one should always be on the lookout for.

Apart from the worrying proliferation of outright scams in this segment, the growth of cryptocurrency adoption will only make this field more competitive. If users or mining farms fail to keep up with the growing hash rate demands, diminished gains and fruitless harvest is all they’ll have to look forward to.

On that note, paying a lot of attention to the prospect of long-term profitability is a very good idea. Due to the fact that the mining farms can’t bear the financial burden of running the hardware, this means that a company that plans to stay afloat over the long run may have to take a slice of the profits as regular user fees alone might not be enough to keep the company viable. This dynamic will definitely have an impact on user profitability.

It is also important to note that the state of the market intertwines with cryptocurrency mining profitability. So, if investors fall out of favor with a particular digital asset, then the fixed nature of some of these lease agreements could betray an investor.

Is It Viable In 2021

As with every other cryptocurrency-related investment, due diligence is king. As for profitability, corporations like Bitmain tend to have better-looking financials during bull market cycles. Whether it works out the same or not for Cloud Mining investors is a matter of each investor crunching the numbers and working from those results.

It would also be wise to note that it is only a matter of time before regulators and tax authorities come strolling down this avenue of crypto investing.

The post Cloud Mining;  Is It Viable In 2021? appeared first on Bizznerd.

Traditional Mining Remains Expensive

Cryptocurrency mining doesn’t only apply to top assets, but much more than that. Being involved in mining Bitcoin, Ethereum, Litecoin, or other assets can prove very expensive. Acquiring the necessary hardware to begin the mining operation often requires a steep upfront investment, furthermore, nothing can be worse than Making the maintenance fees related to traditional mining.

Electricity is the core in mining cryptocurrencies. The Proof-of-Work algorithm employed by Bitcoin, Ethereum, and others requires significant mining capacity over time.

Powering those machines means using more electricity, a concept that has gotten plenty of scrutiny lately. Even Elon Musk criticizes the Bitcoin network for its severe impact on the environment, even if most Bitcoin mining electricity comes from renewable sources.

Yes, it can be expensive, competitive, risky, and yet, the mining concept goes well beyond Proof-of-Work these days, creating new and exciting opportunities for onlookers and enthusiasts. It is crucial to compare the different options on the table and figure out which approach will work best.

The Traditional Mining Route

For those users who want to opt for a more traditional option and mine cryptocurrencies with their graphics card (GPU), there are several options to explore. It all comes down to finding a GPU capable of ming at competitive speeds and finding the right network to maximize profits. That latter option can be a bit tricky, though, although there are noteworthy options that might surprise a few people.
As things stand, the most profitable currency to mine with a GPU is Ravencoin. That may be a bit surprising, although the X16 algorithm is quite user-friendly and approachable by anyone with a recent graphics card. Rewards usually depend heavily on the RVN price, yet the currency has a 5,000 RVN block reward. Depending on how much one pays for electricity, it is relatively straightforward to earn a few dollars per day by mining this altcoin.

Another favorable option is mining Ethereum. Although there is a lot of network competition, it remains one of the more popular crypto assets on the market today. Moreover, with the upcoming switch to proof-of-stake, people expect the value of ETH to go up in the coming months.  There is no guarantee of that happening, however, but exploring the different opportunities can prove worthwhile. It is unclear when the switch from proof-of-work to proof-of-stake will occur, however. Ensuring a return on investment for people who begin to mine Ethereum today might be impossible, depending on the developers’ timeline.

For those who want to get in on the GPU mining action, finding the right card is of the utmost importance. Per WhatToMine, the most lucrative card is the NVIDIA GeForce RTX 3090, with a maximum profit of $7.23 per day. Finding such a card at average prices is currently impossible, however. The AMD Raden VII is still competitive, despite being launched in 2017.  No one should expect to get rich overnight from cryptocurrency mining, however. The costs will not always outweigh the earnings.

Exploring Alternative Options

Rather than opting for GPU mining or buying special hardware to mine Bitcoin, there are other options to explore. One currency, named Crypton, provides a solution that involves the Utopia Mining Bot. Contrary to what one might think, this Bot does not participate in cryptocurrency trading, Instead, it supports the network by operating a node to collect rewards. It provides a different spin on the traditional mining concept while still incentivizing users. More importantly, the network prevents selfish mining.

For those looking to maximize their mining returns, the only requirement is running the Mining Bot 24/7. Nodes are tasked with providing RAM, packet routing, and generating “bogus” packets to cover up real data packets. All transactions occurring over the Utopia network via Crypto are confidential and untraceable. To provide that functionality, nodes are essential, making them eligible for a reward. As users provide resources in exchange for these rewards, one can make a point they are “mining” rewards, even if it doesn’t involve regular mining software or hardware.

The best way to keep the node running continuously is by running a Virtual power Server, or VPS. Installing the Utopia Mining Bit on a VPN should give node owners the best chance at maximizing their returns and profit. Using other hardware, such as a computer or smartphone will not guarantee 100% uptime on the node. Thus opting for a different approach that requires less maintenance and upkeep can prove beneficial.

It is worth noting that the Utopia Mining Bot is not a feature one can enable in the native application. It is an entirely separate application that users can download manually. Opting for this approach makes the engagement in Crypton mining a conscious and deliberate one, further empowering users who want to be part of this ecosystem.

Conclusion

The concept of mining cryptocurrencies comes in many different forms. Some people prefer the traditional option of buying a GPU or dedicated mining unit to compete for a share of the block rewards. Others will try their hand at something more accessible that requires far less expertise and hassle while still providing acceptable results.

There is no right or wrong approach when it comes to cryptocurrency mining. The approach by utopia is different from what people might be used to today, but running a node, providing rewards, and using resources – hardware and bandwidth – to empower a network can be considered “mining”, even if it isn’t in the traditional sense. Thinking outside of the box is never a bad idea, especially if it can make cryptocurrency more appealing and accessible.

The post Mining, Crypto,and industry Best practices appeared first on Bizznerd.

The process of validating digital asset transactions in a distributed ledger powered by Proof of Work (PoW) consensus algorithms involves a great deal of computing power. The hardware involved solves complex mathematical equations in order to validate transactions and commit them to the ledger. The process – also known as mining – is insentivized by a reward in digital assets.

The process is quite demanding however, in terms of electricity costs, as well as hardware maintainance and upgrades. Add the fact that digital asset prices tend to fluctuate wildly, and setting up your own mining operation could prove rather difficult.

“The logic behind mining is very complicated. You need to calculate what machine to dig, how much it will cost, how much the electricity will cost, etc. In all costs, the price of electricity accounts for more than 80%.” – Lei Geng, of digital asset mining firm, RawPool.

Cloud mining however, promises to offer the average Joe an opportunity to get in on the digital currency mining action.

Without having to purchase an array of hardware and manage complicated software, non technically astute individuals can take out a contract offered by a mining service and rent some hashing power to reap a portion of the profits. At least that’s how it works in theory. There have been several boat loads of firms springing up on the net, purporting to offer such services, only to vanish into the night almost as quickly as they came.

The Cryptocurrency Mining Industry

Despite the post-2017 price doldrums that digital asset markets have been stuck in, the mining sector has seen a great deal of growth. China still dominates the Bitcoin hashing power market, but data from the Cambridge Centre for Alternative Finance, or CCAF, suggests that other territories have begun to take mining seriously.

The industry has seen a lot of public, and private sector support in recent years, with some territories recognizing it as a legitimate industry. Firms like digital asset liquidity provider, GSR, are beginning to develop risk management structures and financial support facilities for the digital currency mining industry. Suggesting friendlier sentiments toward digital asset miners.

By the numbers, Bitcoin mining – alone – generated over 112 Terahashes in May 2020, down significantly from the previous month (possibly as a result of the post-halving difficulty bomb), but still in the All Time Highs territory it has been logging in recent years.

Over all, the – increasingly transparent – Bitcoin mining industry has registered a 10× growth rate since 2017, to be valued at over $5 billion in May of 2020. According to Finanso.se, $4.9 billion of the revenue generated by mining firms in 2019 was from block rewards. Due to lack of clarity from industry players it is hard to estimate what percentage of mining revenue came from cloud mining contracts. However, the sector’s growth is not insignificant.

The Problem With Cloud Mining

The issue with cloud mining is that there are many who doubt the legitimacy of the model, as an investment. Cryptocurrency forums are full of posts from people claiming to have been scammed by a cloud mining firm, and subsequently losing their investment.

With the current frenzied adoption of digital assets, the market is packed with poorly informed individuals looking to make triple digit gains off their investment, opportunists recognized this and can easily set up websites promising a slice of the cryptocurrency mining pie. Without any regulatory oversight, many a new investor is left vulnerable to being scammed.

Well known Bitcoin developer, Gavin Andresen, in 2014, posted a comment on a post asking about the legitimacy of cloud mining services, likening them to pyramid schemes; “I suspect many of them (Bitcoin cloud mining firms) will turn out to be Ponzi schemes.”

The other aspect that draws scepticism from the cryptocurrency community is the rate of return on one’s investment in cloud mining contracts. Mining firms who are known to lease hashing power out to the public usually have such a low return and charge such hefty fees that one is left wondering if they would be better off simply purchasing the asset. Taking market fluctuation into consideration, cloud mining contracts could possibly yield a negative return.

The Rawpool team begs to differ however, and estimate that cloud mining contracts will still be profitable in a market downtrend. Only, it may take longer to realize those profits. This may be the case, as cloud mining contracts appear to be so popular that contract options on ViaBTC.com and Bitcoin.com’s cloud mining service are, at the time of writing, sold out.

Our Investigation

The Bizznerd team selected a handful of websites claiming to offer hashing power leasing services and put down a total of $1,000 on mining contracts on all of them. Of the firms we tried out, none gave a satisfactory return.

Genesis Mining

We put 0.02 BTC into an ETH mining contract, which was worth $ 85.50 at the time (currently worth around $195). The returns, after two years of holding the contract, were 0.13 ETH, valued at $31.6.

Hashing 24

This contract had us pulling our hair out. We took out a 100 GHs mining contract, then worth 0.00709543 BTC  ($64). The contract never broke even, but it did earn 0.00030587 BTC, about 26 bucks. We couldn’t withdraw the funds however, as the balance was too low. The contract also auto-cancelled, because Hashing 24 cancels contracts that go negative for 3 days in a row.

Eobot

The two contracts we took out on Eobot, account for our biggest cloud mining contract related spend. The results however, leave a lot to be desired. We took out aCloud SHA-256 5.0 – 221.6744 GHS contract (10 years), as well as a Cloud SHA-256 6.0 -1352.9354 GHS (10 years) both failed to yeild profits.

Following the Bitcoin Halving, both contracts stopped. The second it now active again, but with smaller GHS numbers and it doesn’t appear that we’ll receive 30% of the initial investment. There’s much doubt whether, or not, the contract will be active for the remainder of the decade.

Others

Other contracts we took out with other clound mining operators stopped working after a single year. Some took longer, but eventually also stopped operating. Some contracts we took out with other big firms are still active but they only make up about 5% of the mining firms we took contracts with. No profits to report on those contracts either yet though, just a miniscule yield that might never realize a profitable position, similar to the others.

Most cloud mining operators seem to follow a similar operational vein; open a UK based company, protect the site with Cloudflare (possibly, to their leads), operate for a year, shut down, rinse & repeat. They don’t offer any substantial proof that they even own mining hardware, or investors, or contact numbers.

We reached out to a number of cloud mining operators to get comments – and, possibly, some answers – however, none had gottent back to us by the  time of publication. ViaBTC and Genesis Mining were the only firms to return a response, saying that they would get back to us but that – to date – has not happened yet.

Conclusion

Our first hand experience with cloud mining leads us to conclude that cloud mining contracts don’t seem to offer a convenient (or profitable) alternative to actually spending on mining equipment, or buying and holding the actual digital asset. The notoriously opaque operational nature of the digital asset mining industry is another stumbling block that makes mining contracts unattractive.

With that in mind, along with the fact that a lack of regulatory oversight leaves the segment open to scammers, cloud mining appears more like a white elephant than an actual investment. Perhaps firms seeking to rent out their hashing power would benefit from being more open, amending their offerings to drive contract, or simply going public (listing on a stock market, or tokenizing shares) to fund operations. Current cloud mining offering don’t appear to be all that the firms offering them promise to be, which is probably why we hear words like ‘scam’ and ‘ponzi scheme’ bandied about whenever they are mentioned.

The post Bizznerd Investigates: The Truth About Cloud Mining, Worthy Investment, or Scam? appeared first on Bizznerd.

Eobot is cloud mining company and has been founded in 2013 in Los Angeles, California. The owners of the cloud mining service wish to keep their identity securely and they do not share anything about the background of the company. We are testing Eobot for more than two years now and I can tell you it is one of the oldest and safest cloud mining platforms, but with high fees. But what I like the most is that with Eobot faucet you can get free crypto on a daily basis.

What is Crypto Faucet?

A crypto faucet is a reward system, in the form of a website or app, that dispenses rewards in the form of a satoshi or alternative cryptocurrencies dispense. Visitors can claim free crypto in exchange for completing a captcha or task as described by the website.

How to Register?

Visit Eobot site and in the right corner click on the „Sign Up“ button.

Fill out all necessary fields and you’ll receive a confirmation email. Once you approve your account – you’ll be able to log in and redirect to your account dashboard.

How to claim free crypto? – Eobot Faucet

To claim free crypto first thing that you’ll need to do is select cryptocurrency that you want to claim. I am using Eobot for mining Ripple, but you can choose between different currencies like Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, Dash, Tron, Cardano, CureCoin, NEM, Monero, Zcash, Factom, Bytecoin, STEEM, Lisk, EOS, USD, Stellar, Ethereum Classic and Grin.

Afterwards, go to the navigation menu and select Products >> Faucet. On the Faucet page solve the captcha and you will be awarded free coins in whatever you have chosen in the “Mining” dropdown on the top left of the Account page.

Please note that you need to disable any 3rd party Add-blockers while solving captcha. And even though there is a solution visible on the screen for the math problem, you are required to type it in.

How To Deposit to your Eobot Account?

On your account dashboard bellow all crypto-currencies you’ll find several options like Deposit, Withdraw and Exchange.

Clicking on the Deposit link and you’ll see all different crypto wallet addresses. If you want to deposit to a wallet address that doesn’t exist simply click „Generate“ button and a new wallet address will be generated.

How to Buy Cloud Mining Power? – Eobot Exchange

Once you deposited some crypto, you’ll be able to do exchanges. You can exchange to other crypto-currencies or to Mining Power. For each exchange, some fee will be applied. At the moment we recommend purchasing Cloud SHA-256 6.0 10 Year Rental.

Overall Conclusion

Although Eobot is in the cloud mining business since almost the beginning, their service is more expensive than the market average due to the high maintenance fees. We are using it for several years now for testing purposes prior to writing this article and it was suspicious to us because of lack of information on the owners. Personally I don’t recommend this site no one – cause after Bitcoin Halving they dropped drastically GHS value. Rather buys some BTC than cloud mining on this site.

In the next few articles we will write more about SEO Experts, free faucets and best cloud mining platforms – so stay tuned.

Happy mining by BizZnerd Team.

If you like our Eobot overview, we also recommend that you read our article “CoinPot Review – CoinPot Faucets List“.

If you haven’t got any Stellar Lumens yet read our following articles:

How to Claim Free 25$ Stellar Lumens (XLM) with Blockchain wallet?

How to Claim Free 50$ Stellar Lumens (XLM) and other cryptocurrencies with Coinbase Earn?

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