Cloud mining — a service that enables individual users to lease hashing power from dedicated cryptocurrency mining operations — came forth as professionalization and cartelization of the mining business began to drive out smaller and insufficiently equipped players from the scene.
Since there is no way to verify that the share of the mining rig you are supposedly leasing actually exists — even if returns on your investment seem to be flowing regularly at first — the scheme is widely regarded as a happy hunting ground for scammers. Perhaps the only way to steer clear of fraud is to rely on the reputation of the established cloud mining brands. But with the outbreak of the recent scandal around the cloud mining platform HashFlare, this option might also soon be off the table.
Continue Reading on Coin Telegraph
