Ever since Bitcoin exists, countless scam cases reported. Irresponsible individuals and parties misused the name Bitcoin to promote multi-level-marketing (MLM) schemes, rug-pull, Ponzi, and more.
In technicality, cloud mining is real and possible. However, in terms of operations and legitimacy, it is questionable.
Imagine investing your money in a company that promotes Bitcoin mining, and victims can earn passive income. Some victims received small payouts, spreading the scheme peer-to-peer. Until one day, the company decided to vanish together with all the victims’ investment.
The scenario is one of the many reasons for any companies out there that promote cryptocurrency cloud mining to be untrustworthy. It is our responsibility to help you in clearing misconceptions and sharing the facts.
Does it work?
On paper, yes. An organization or a company can set up a cryptocurrency mining farm and the public can invest to earn a portion of the income.
However, the biggest issue is trust. It is a high-risk investment option for an investor to participate in such activity. The company can vanish with all the investment funds leaving investors at a total loss.
Therefore, in practicality, it is impossible to assure that investors will be able to participate in cloud mining activity safely with a trustable company.
Even so, there are trusted big cryptocurrency mining companies that have been operating for the past years. One of the companies is Genesis Mining that has been operating since 2013.
The BTC Standard Hashrate Token (BTCST)
A project called the BTC Standard Hashrate Token (BTCST) offers an evolved way for cloud mining and innovatively provides the solutions that cloud mining requires.
BTCST is a token collateralized by standardized Bitcoin mining power. Each BTCST is equivalent to 0.1 terahash per second (TH/s) of the Bitcoin mining capability. BTCST holders can stake the token to earn daily BTC distribution.
What’s more interesting is, BTCST can be traded in exchanges as well. This way, the project provides good options for holders and investors.
If you are interested, you can read the whitepaper here.
The changes are still early
The BTCST project is a good example of providing a solution to the problems in cloud mining. We believe this is just the beginning and more interesting projects will follow.
Probably the public will consider cloud mining again or perhaps cryptocurrency mining is the thing of the past. Who knows?
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