Smart Cloud Mining: Beware the Scams
por:
Paulo
18 de setembro de 2023 às 11:00:00
Smart cloud mining is a fraudulent concept that combines two legitimate technologies: cloud mining and smart contracts.
Cloud mining is a way to mine cryptocurrency without having to purchase or maintain your own mining hardware. Instead, you rent computing power from a cloud mining company. The company then uses this power to mine cryptocurrency on your behalf, and you receive a share of the profits.
Smart contracts are self-executing contracts that are stored on a blockchain. They can be used to automate a wide variety of transactions, such as buying and selling goods, paying for services, and even voting.
Scammers are using the expression "smart cloud mining" that promise high returns on investment. However, these contracts are often designed to fail, and investors lose their money.
How Smart Cloud Mining Scams Work
There are a few different ways that smart cloud mining scams work. One common scam is to create a smart contract that requires investors to deposit a certain amount of cryptocurrency in order to start mining. Once the investor deposits their cryptocurrency, the scammers simply disappear with the money.
Another common scam is to create a smart contract that promises to pay investors a certain amount of cryptocurrency each day. However, the contract is designed to pay out less and less money over time, until it eventually stops paying out altogether.
Scammers may also use smart contracts to create cloud mining contracts that are impossible to complete. For example, a contract may promise to mine a certain amount of cryptocurrency per day, but the contract may be designed to mine a type of cryptocurrency that is very difficult or impossible to mine.
How to Avoid Smart Cloud Mining Scams
There are a few things you can do to avoid smart cloud mining scams:
Be wary of any cloud mining contract that promises high returns on investment. There is no such thing as a guaranteed return on investment when it comes to cryptocurrency mining.
Do your research before investing in any cloud mining contract. Make sure to read the terms and conditions of the contract carefully, and make sure you understand how it works.
Only invest in cloud mining contracts from reputable companies. There are many scams in the industry, so it is important to be careful.
What is the Difference Between Smart Cloud Mining and Cloud Mining?
Smart cloud mining is a fraudulent concept that combines cloud mining and smart contracts.
Cloud mining is a legitimate way to mine cryptocurrency without having to purchase or maintain your own mining hardware.
What are Smart Contracts?
Smart contracts are self-executing contracts that are stored on a blockchain. They can be used to automate a wide variety of transactions, such as buying and selling goods, paying for services, and even voting.
Smart contracts are created using a programming language, and they can be very complex. However, they can also be used to create simple contracts, such as cloud mining contracts.
It is important to be aware of the risks of smart cloud mining scams before investing in any cloud mining contract. Be wary of any contract that promises high returns on investment, and only invest in contracts from reputable companies.
Online Sources
UK Financial Conduct Authority (FCA) warning about smart cloud mining scams: https://www.fca.org.uk/scamsmart
US Securities and Exchange Commission (SEC) warning about cloud mining scams: https://inc42.com/buzz/crypto-scam-continues-31-duped-in-a-cloud-mining-scam/
Investopedia article on cloud mining: https://www.investopedia.com/terms/c/cloud-mining.asp
Bitcoin.com article on smart contracts: https://bitcoinmagazine.com/technical/why-bitcoin-smart-contract-platform