Chinese Bitcoin Mining Alliance Denounces Ponzi Schemes in Transparency Push
A consortium of major bitcoin mining companies has pledged to be more transparent in its operations, specifically on the source of cloud mining payouts. Including major China-based bitcoin mining firms ASICMiner, Gridseed, Rockminer, XBTec and ZeusMiner, the group boasts that the partnership has resulted in the "the strongest alliance ever in cloud mining history", according to the official announcement. The move follows previous cooperative efforts between the companies, which are moving to provide greater support to one another in the face of increasing international competition. Last....
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Earlier this month, bitcoin had one of its best weeks since August 2014, as the price of bitcoin peaked US$500 in international exchanges, including OKCoin, BTCC, BitFinex and Bitstamp. However, bitcoin price immediately began to plummet, falling back down to US$356 at today's low, recording a nearly 30% decline since its peak on November 5. As a result, the trading volume of prominent Chinese bitcoin exchanges including OKCoin have almost halved over the past week. OKCoin, the world's largest bitcoin exchange (by trading volume) suspects that the slowdown in bitcoin trading activity in....
It is not the first time Bitclub is getting a lot of negative attention, though. People can clearly see this company is nothing more than an MLM Ponzi scheme waiting to collapse at any moment now. Bitcoin has become a very popular form of money, attracting interest from all over the world. Not all of that attention is positive, however, as various companies have taken it upon themselves to use Bitcoin as a promotional tool for Ponzi schemes and MLMs. Needless to say, most of these projects are scams, hurting the public image of Bitcoin in the long run. Bitclub is one of the longest-running....
Is it really necessary to implement AML and KYC regulations for Bitcoin and other cryptocurrencies? There has been some debate on the need of blanket Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations for Bitcoin and other digital currencies. Even though it is a long-standing debate, it was further fueled by a recent blog post by Tim Swanson, the Director of Market Research at R3CEV, where he calls for such regulations by giving examples of few frauds and Ponzi schemes in the cryptocurrency sector. Ponzi Schemes and Frauds Were There Even before Bitcoin. Greed is an....
Roughly nine months ago, Bitcoin Foundation Chief Scientist Gavin Andresen made a rather interesting comment on Reddit in which he claimed, "I suspect many [cloud mining companies] will turn out to be Ponzi schemes."There have been a few cloud mining scams uncovered over the past year or two, and it appears that another one could unravel in the near future. An anonymous source has provided information to Bitcoin Magazine regarding the possibility of a Bitcoin cloud mining ponzi scheme involving Bitcoin Cloud Services (BCS), which is currently one of the largest cloud-mining providers on....
Cloudhashing or Cloudmining, the process of paying someone else to mine BTC for you, has been popular since the rise of CEX.io's Ghash service. Numerous alternatives have risen to compete with Ghash such as Hashie and LTCGear. Many cloud mining sites have been revealed as poorly designed ponzi schemes over the last year, as anticipated by Gavin Andresen. It seems we might be seeing more now. Update: LTCGear's website is back online, though no payouts have been received. Also read: Gavin Andresen Suspects Ponzi Schemes in Bitcoin Cloud Mining. Hashie Playing Games? While literally no....