Cloud mining is the type of mining that is done remotely means instead of buying a miner and storing it or configuring it, you rent a miner and someone else do the mining for you and split the profit. Now, the main risk is that many of the big companies are even Ponzi schemes which means they pay old users from new users money and so one does the chain continues until they vanquish. Let me tell you about Hashflare, it was launched in 2015 by a group of cryptocurrencies experts known as Hashcoins, while the website is now considered as one of the top ten websites online and is now regulated and registered in the United Kingdom as Hashflare LP.
Mining on Hashflare
Hashflare provides three types of mining powers SHA256 (For Bitcoin), Scrypt (for litecoin, verge etc) and ETHASH for mining Ethereum and all ERC-20 tokens.
Where for BTC miner as of today the worlds most efficient bitcoin miner is Antminer S9 which originally costs $850 where Hashflare costs $1040 per year?
Comparing the profits are that Antminer S9 produces 13 Th/s which almost produces $220 without maintenance and electricity charges. But after all that costs on Hashflare, a user would only be able to earn $80 per month which per year is $1040.
Payments are made in USD and Paid in BTC on Hashflare, while the most interesting thing is that the website states that the contract of a user is only valid until the investment is earning something which means that if the earnings at a point dropped and become zero the contract of the user will be canceled and investment will be gone in the wind.
This is not only with Hashflare only but every cloud mining company has a scheme like this.
Is HashFlare Scam? [Online Reviews]
There are many online reviews available with mostly are fake as this company has a referral program, while there are mostly negative reviews found online with users complaining about their profits with respect to investment while some state the website as a complete Ponzi scheme or a scam.
According to us the website is legitimate means they cannot run away with users money but is not good for investment and not that profitable at all if you compare in terms of mining, some good money can be earned if you do mine yourself maybe more than cloud mining while for generating profit you can also hold your coins and not spend them until the price increases just like the last year increase in bitcoin market.