Cloud mining is a completely different form of earning bitcoin and in turn a standard currency, be it the Dollar or any other, depending on where you stay. The idea behind it bears striking similarity to what we all know as “cloud-based”computing. However this concept brings closer to home, and more importantly within reach, the ability to participate in a “communal” form of investing.
A Cloud Mine?
The basic concept of the Bitcoin Cloud Mine reflects that of an actual Mine. Entrepreneurs have invested their own funds into building or buying the necessary equipment which “mines” Bitcoins. An automated version of the various “click-and-earn” methods. You would then invest your own Bitcoins into buying shares in this very Mine. The more you invest, the more you earn as the Mine grows its Bitcoin funding. Most Bitcoin Mines have options allowing you to decide where to start in terms of your initial capital input and then to grow from there. Growth or returns on your purchase are normally delivered daily so it is easy to keep an eye on your funds.
How to spot a fake
The best way to find out if the Mine you’re interested in is a scam is to do some research. Look at the Site as a whole and check for unprofessional website details. Grammar and spelling are two of the most common signs of trouble. You can also look at the returns being offered. Take a step back and think about it in real terms. Can a Cloud Mine really make you a thousand percent return on investment in one day? If that truly was the case everyone would be Billionaires! Unfortunately you have to make sure the returns are kinda realistic. Look at what the traditional banks offer. There’s a reason they offer what they do. The same applies to Cloud Mining. In order for them to stay in business they HAVE to offer you realistic returns.
A great example of one of the legitimate Mines is Bitclub. Have a look at how they structure things. This will give you a baseline of information for your research. Although, if you read and understand everything mentioned on the Site, you’re not likely to go anywhere else! For those of you who prefer to check out actual payouts, have a look at Blockchin.info. Nothing speaks volumes better than the actual earnings of real people published online!