THELOGICALINDIAN - Bitcoin and cryptocurrency mining has become a actual aggressive industry and the bulk of processing ability hashing abroad to abundance these agenda assets is absolutely amazing However over the years back the birth of GPU and ASIC mining about back home mining angry into an industry the cryptocurrency mining amplitude has been riddled with counterfeit operations and bodies assuming to be massive mining accessories back they dont alike own a distinct miner
Also read: Altcoins Are Dying
Phony Crypto-Mining Rigs & Massive Facilities: The Tale of Mining Vaporware
If you apperceive about cryptocurrencies again you absolutely accept heard about mining and the mega-competitive industry that surrounds this action of minting new agenda assets like bitcoin, litecoin, and ethereum. Between the BCH and BTC arrangement alone, miners are processing an boilerplate hashrate of 45 exahashes per second. However, over the years there accept been a lot of counterfeit individuals and operations aural the mining industry claiming to be article they’re not.
We afresh wrote about some sketchy blockchain projects that accelerate cryptocurrency publications columnist releases, and these antic projects get advanced folio accessories alike admitting their operations are authentic vaporware. In the mining sector, there are some adumbral operations that acknowledge they accept a huge ability with bags of SHA256 miners churning abroad at the bitcoin network, but there accept been abounding instances area individuals accept begin these warehouses abounding with miners don’t alike exist. Some of these fraudsters accept alike acclimated pictures of added people’s mining operations so they can accomplish bodies accept they accept a ability abounding with ASIC miners.
GAW Miners and Hashlets
A few years ago a lot of bodies from the cryptocurrency association were scammed by the close GAW Miners and its accompanying companies. The architect of GAW Miners Joshua Garza started out as a simple mining accouterments reseller, and aback claimed to own massive mining accessories and the aggregation started a cloud-mining operation alleged “Hashlets.” There was one big problem, the operations were acutely apish with photoshopped pictures, and his projects were bolstered by a blend of lies pushed by Garza and his associates. Of advance due to these factors of fabrication, the company’s cloud-mining articles alleged ‘Hashlets’ never paid out. The US Securities and Exchange Commission eventually charged Garza with artifice and active a Ponzi scheme.
Hashocean’s Exit Scam
Another adumbral adventure that started in 2014 was addition cloud-mining operation alleged Hashocean. The Hashocean aggregation for years claimed to accept six super-large mining farms amid all about the world, and for a year or so it became a actual ample business operation as far as arrangement sales were concerned. Again two years ago in July of 2016, the aggregation abruptly apoplectic all payouts and the armpit silently went offline. Hashocean was again accused of actuality an ‘exit scam.’ Moreover, alike admitting the operation lasted two years according to Bitcoincloudmining.org, Hashocean had a abhorrent acceptability for advantageous out, alike back the armpit was animate and well. After the armpit went bottomward alleged amount associates of the Hashocean aggregation claimed they were ‘hacked’ and promised to acquiesce withdrawals but annihilation anytime materialized.
Fabricated Mining Rigs
Another accustomed betray is back bodies advance a new mining apparatus that allegedly outperforms every mining rig on the market, but the apparatus doesn’t absolutely exist. Just like some accepted mining manufacturers, betray apparatus sellers accept a pre-order for their aboriginal batches of super-efficient miners. Back in May of 2017, news.Bitcoin.com caught three adumbral websites that were all commutual affairs bogus mining devices. The machines did not exist, but the websites and the bodies abaft them abiding did, accession a brace admirable account of BTC per miner for accessories that will never address out. Foxminers, UFO Miners and Minerslab all awash the aforementioned machines with altered logos but the logos were photoshopped on earlier miners bogus in the accomplished like Zeus Miners.
‘The Largest Miners’
Even now pretend mining operations are still application the aforementioned old smoke and mirror approach to accomplish themselves attending bigger than they are. For instance, to this day there are abounding coarse columnist releases beatific to cryptocurrency publications that abide of firms claiming to be the better abstracts centers in Canada or the US. But there are never any pictures beatific with these columnist announcements, and the locations of these accessories are never absolutely publicized, but yet these firms consistently affirmation to be the ‘largest mining ability in North America.’
If bodies can’t verify that these mining operations absolutely exist, and a columnist absolution claims to be the region’s better crypto-mining ability by capacity, and publications book this debris based on faith, again article is wrong. The cryptocurrency industry has a agglomeration of coarse people, and some of them affirmation to be mining behemoths.
If one was to google, “the better bitcoin miners in North America,” the being would acquisition there are abounding firms who affirmation to be the area’s better operations. Who is the better mining operation in that region? — Is it Bitfury, Hut8, Gigawatt, Hashflare, Coinmint, and the abounding others who accept claimed to be the biggest? Without accurate transparency, real-time affidavit of the facilities, and absolute assemblage it is acceptable some of the ‘biggest miners’ in North America and added regions about the apple are all talk.
Photoshopped Facilities
The moral of the adventure is aback it comes to mining operations, if it can’t be accurate it’s acceptable addition alarming smoke. A few years ago the banking advertisement Business Insider’s Rob Price got a bout of the Genesis Mining firm’s abundance amid in Iceland. Marco Streng, the Genesis co-founder, explained at the time that mining operations accept a “major assurance issue.” Streng tells Price aback in June of 2016:
What do you anticipate about miners assuming to be added than what they absolutely are? Let us apperceive what you anticipate about this accountable in the animadversion area below.
Disclaimer: This is an Op-ed article. The opinions bidding in this commodity are the author’s own. Bitcoin.com does not endorse nor abutment views, opinions or abstracts fatigued in this post. Bitcoin.com is not amenable for or accountable for any content, accurateness or affection aural the Op-ed article. Readers should do their own due activity afore demography any accomplishments accompanying to the content. Bitcoin.com is not responsible, anon or indirectly, for any accident or accident acquired or declared to be acquired by or in affiliation with the use of or assurance on any advice in this Op-ed article.
Images via Shutterstock, Pixabay, Bitcointalk.org, and the Foxminers scam.
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