is crypto mining a scam?
so it's a question that you've seen
flying around the internet many many
times is crypto mining a scam can people
actually make money is there any truth
in all of this and the reality of it is
is categorically yes you can make money
and no it is not a scam at it's top-level
now does this mean there are not scam
companies out there who have set up with
some invention of all sorts of crypto
mining goodness and basically ended up
disappearing in a tailwind as soon as
they've stolen your money yes so this is
kind of where we need to separate these
things in principle there is nothing
wrong whatsoever with owning the mining
device mining coins earning money selling
those coins into cash and earning a
really nice profit that is
cryptocurrency mining and if you're
doing it in that method there is simply
no scam to be had you own posh computer
power all the companies effectively pay
you for renting out that power from you
and you get paid a reward for a service
the computational processing power
service that you've provided in a form
of coins you sell those coins on the
market easy peasy
there is no scam however as with all
things wherever there's money to be made
there are disingenuous people who want
to pull the wool over people's eyes now
unfortunately what we've seen fairly
regularly in this sector is that
everyone kind of had the Bitcoin hype in
2017-2018 where every man and his dog
was talking about Bitcoin and what that
led to was loads of people wanting to
get involved and that obviously that you
know that overflow from that man a lot
of people wanted to get involved in
Bitcoin mining but the problem was was
the average person's education level was
so poor that it left many many people
vulnerable to be taken advantage of so
when you talk about Bitcoin mining or
cryptocurrency mining scams what we're
really talking about here isn't the
concept of mining itself because that's
about as pure as it gets it's bad
players within that sector that are kind
of taking advantage of people so one of
the most common forms that this took was
something called cloud mining where in
theory you would buy a chunk of power of
someone who had a massive warehouse of
computers in another country and you
would kind of rent so much power off them
per day per week per month in in a
long-term contract and for many many
reasons even though a lot of those
companies were genuine there was some of
them that just weren't and you know they
would take loads and loads of money in
payment up front and then a couple of
weeks later a couple of months later
they would disappear and you know these
people would disappear around the globe
without any track or trace and
ultimately there's not much people can
do about that it doesn't inherently take
away the principle of what's good or
what's bad so much as that people will
always try to you know be disingenuous
when there's money to be made
unfortunately that's the reality of
human nature and there isn't much that
anyone can do about that now when it
comes down to how to safeguard yourself
then this is where it becomes a little
bit more interesting the reality of the
situation is that there are lots and
lots of ways you can make sure you're
safe online particularly when it comes
to cryptocurrency mining we would always
advise people to never get involved with
companies where you don't own the
physical equipment that would kind of be
number one there are many companies out
there that say hey guys you can rent
some of our mining equipment you can
rent some of our power well that just
doesn't make any sense because if mining
is so good which it is under the right
circumstances why would anybody choose
to rent you their power when they could
be mining themselves if they've already
got that kit and it's already set up
doesn't really make any sense and some
people then throw that question back at
me and go hey Josh but your company
sells mining equipment well yes we do
because we manufacture it so it's a
little bit different because obviously
we have our own facility mining as well
but the scale of this sector is so big
and quite frankly the more people that
are mining the better I don't have a
bucket load of equipment just sat there
and my customers rent it off me that's
not the model we operate the operational
model that you should really be
looking for is you own the equipment you
own a hundred percent of the equipment
so God forbid you wanted to go and do
something with that equipment a week
later that's your business and your
prerogative
by owning the equipment it also gives
you full control over what coins to mine
as well because if you've bought
equipment and you're forced to mine a certain
coin then that's silly and there's no
need to be kind of bent over a barrel
there with your coins your equipment
you taking 100 percent of that then
it really
it's any type of vulnerability that you
have in terms of any company taking
advantage of people so here at  Easy Crypto
for example people often ask us well ok
Josh that's great but what if your
company disappeared tomorrow or
something happens to you and go hit by a
bus well quite frankly that would not
affect any of our clients ability to
earn any money it's their equipment they
can access the machines remotely they
have full control of what the devices are
mining simply we come in to give the
best advice that we can and so if I'm
not around I might not be able to give
that advice but ultimately the equipment
and the earning potential remains
identical and so irrespective of where
my company is everyone who has equipment
currently is still gonna be just fine
and now when you kind of think about
getting involved in this space these are
some of the things that you need to take
into consideration if you spend tens of
thousands of pounds with a company in
another country and that company goes
bust what chances do you have any
type of fallback, you don't own any
equipment you're not really in control
of it you can't go over there and pick
up the equipment so again it's just like
all investments it's something that you
want to be sensible about so are there
vulnerabilities in this are there people
looking to take advantage yes there are
as the kind of interest in Bitcoin kind
of fell from its peak when it was
$20,000 thankfully that's become a
little bit less and now the stronger
players have come to kind of stand the
test of time well the reality of it is
is crypto mining is about as honest
pure as any type of business services
you can imagine similarly many of you
watching this now might own a business
or at least be familiar with how web
hosting works if you have to pay a
monthly web hosting fee to rent the
computational power to keep a website
online you would never say that the web
hosting company is a scam because you
appreciate you need to rent computer
power that is pretty much what's
happening in the crypto mining space
computational processing power is a
resource other companies need that
resource and are happy to reward you for
the process of doing so so at its core
it's as pure as it gets above that
unfortunately people are not always the
nicest in the world and will take
advantage so again one of my big goals
for the sector is when I'm keynotes in
and running my business here is to
educate people across the sector to
understand what the pitfalls are so
people can make the right decisions for
them whether or not they should get
involved don't know
I hope this has been helpful now answer
the majority of your questions if you
have any other burning questions for the
crypto and mining sector have a little
look around our channel and we'll look
forward to being able to answer some
more of those soon
you
