“It’s too easy, mining rigs are already set up and running. As soon as you’ve set up your account, you can purchase a plan, start to mine and get daily returns using our crypto cloud mining service!”
The above was written on the Power-Miner site as seen at power-miner.com. In this article, we shall analyze the company and its site to know if it is worth sending bitcoins to in your quest to buy a cloud mining contract.
What is Cloudmining?
Cloudmining is the process of mining cryptocurrencies such as bitcoin using a remote data center. This saves the miner the laborious process of buying and hosting hardware with attendant costs.
Cloudmining services make mining accessible to all at a cost. This is because the cloudmining company is responsible for the running cost of the operation thereby enabling users of the service to just pay for the contract.
Mining is capital intensive so users of the service pay for it but the return on investment may take weeks or months depending on the market condition and mining difficulty of the cryptocurrency.
Aside ICOs, cloudmining is among the most abused service in the cryptosphere as seen with the power-miner.com. Identifying scam mining services is quite easy because they mostly offer ROI far more that is realizable with respect to market conditions.
What is Power Miner?
This is another mining website that promises people extreme profit on their mining contracts. The main reason behind this is that scammers are aware that people prefer to reap where they didn’t sow and to reap bountifully.
Greed feeds scams so those behind it present irresistible offer to people who know little about mining. The impression many have is that bitcoins could be extracted easily or generated from the internet.
What they have failed to realize is that the value of the digital currency stems from the difficulty involved in getting it.
Who is Behind Power Miner?
A scrutiny of the website shows that the owner’s identity Tore Nygard is seen in the documents provided in the registration document. This ordinarily should not raise suspicion because there are many scam companies that routinely set up their sites to get cryptocurrency donation in guise of investment.
But the fact that the name Power Miner does not appear in the document is a cause for concern. Random claims of affiliation that is not proven in a new site should be disregarded.
This is why it is very important that sites that do not have online reputation are avoided. Such is Power miner which is barely 4 month since it was registered on November 11, 2018.
A site such as power-miner.com does not have online reputation and so cannot be trusted with funds even though it has the frills of a genuine cloudmining site.
The problem with the company is that there is no evidence that it would not shut down immediately it gets enough crypto deposits from people.
One Year Contracts
The minimum duration of Power Miner contracts is 1 year but the domain was registered for just one year. This means that the hosting plan would expire in November. Short hosting plans give the impression that the company does not have a long-term view of the business.
Reliable companies usually pay 4 or 5 years for domain registration and hosting. That power-miner.com paid for just one year while selling one year contracts is a red signal that should not be overlooked.
Fake Physical Address
The company published the location of its business in its registration certificate. But the address:
3522 BJONEROA, GRAN
did not return any company named Power Miner. Rather that address is linked to two other companies Cryptonor AS and Steve Saeboe Gjefsen which are two Norweighian companies.
It is clear from the Cryptoinfowatch investigation that this is an area where some mining activities take place. However, Power Miner is an effort by some scammers to impersonate Cryptonor AS creating the impression that the two companies are linked.
Cryptonor AS as Power Miner?
It is obvious that Cryptonor AS is Norweigian and would name their site after their company name. Power-miner.com is clearly a set up by native English scammers. We could not find a link between the two companies.
A site posing as another business is not qualified to render financial services on the internet because the owners could easily move out of sight because investors have no way of identifying them.
Cloudmining services that are reliable are those that have been in operation for a reasonable length of time and offer returns that are is in concord with market realities.
Genesis mining for instance has a domain registered in 1992. This would expire in 2020 so anyone investing in the company knows that they have built a reputation. Buying one year mining contract from them wouldn’t present issues because the buyer knows that the window period of the contract is covered.
Power Miner Plans
A casual examination of the Power Miner site may create the impression that this is a reputable mining site because the owners seem to understand the technical terms involved in bitcoin mining.
A closer look however shows that even though the profit offered is not as high as most scam sites, power-miner.com has no proof that it is actually mining and that investors funds are safe.
Affiliate Must Purchase Plans
Another red signal about this cloudmining site is that it ties its referral program to the plan purchased by its affiliate. This means that it compels all affiliates to buy bigger plans since this would determine the earnings of the affiliate.
Most scam cloudmining sites last less than 1 year. Leaving funds to a company that has no antecedence of honesty and doesn’t provide any details of owner and a physical address is absolutely risky.
In an industry swarming with scammers, power-miner.com leaves a lot desired even as it clandestinely strives to get people to buy their contracts.
For instance, an email sent by the company to me after signing up to know what their operation is like stated,
“You can start the bitcoin extraction right now.
If you buy a 0.5 Bitcoin server, you will receive 0.2 Bitcoin server as a gift from our company.”
Now that is a classic scam email. Where would they get the free $750 from? Usually scammers use all sorts of free gifts and big profits to entice people to send them cryptocurrencies.
Cloudmining scams are very common. In fact more than 90 percent of crypto mining sites are scams. It is better to keep your coins in a wallet or invest with a company that has built an online reputation.
Send them to random and new sites just because they promise a high ROI is equivalent to throwing your money down the drain.
What experience have you had with Power Miner? Share it in the comment box below. If you’re interested in the service I recommend, check here.