Cloud Mining is the process of leasing computing resources to mine cryptocurrencies.
But because these contracts are advertise as a way to make a profit, states like South Carolina considers these contract as securities, and you need to be a licensed broker-dealer to sell these contracts.
This doesn’t mean cryptocurrencies are considered as securities by the SEC of South Carolina, just the mining contracts. So Coinbase and other exchanges are safe in this regard.
My thoughts: While I believe Genesis Mining and Hashflare are legitimately mining cryptocurrencies (and not ponzi scamming people by paying out people with money from new contracts they sold), they control your money.
Unlike a bank which have FDIC insurance (at least in United States), or even stocks/bonds, which entitle the holder to recoup some of their investments (even if it is pennies on the dollar like what happened to Bear Stearns and Lehman Brothers during the financial crisis), these mining contracts does not guarantee anything if there are any issues with these companies.
In addition, you can’t do anything if these companies decide to restrict withdrawals to specific minimums or increase maintenance cost if there are any attached to the contract, you are under the total control of these companies for the duration of these contracts. You also can’t sell these contracts back to these companies if you want to stop mining for any reason.
That’s why I will no longer promote or talk about any cloud mining companies going forward. I will also remove all referral links to cloud mining companies as I believe we should all be responsible for our own investments at all times.
Links:
South Carolina Cease & Desist Order: http://2hsvz0l74ah31vgcm16peuy12tz.wpengine.netdna-cdn.com/wp-content/uploads/2018/03/01621904.pdf
▶️ DTube
▶️ IPFS
Personally I don't see cloud mining as securities. They are a new type of investment that doesn't really fit under anything, a common problem with loads of crypto related things. I think they labeled it wrong but I do believe they need to be regulated as lets be honest its super easy to start a ponzi scheme in the cloud mining space, it's famous for it, and many have and many have been conned.
I think you have taken a precocious step and there is no problem playing it safe clearly you care more about creating a good channel than promoting cloud mining which is respectable.
Hashflare is probably legitimate but I can't say for sure as they are very secretive. Genesis mining on the other hand is (almost certainly) legit imo. The BBC have even done a documentary about cryptocurrency and they featured in it. Now they have gone big though their prices have rocketed up so they are not going to be as profitable as before, any very profitable opportunities they probably just do themselves as they now have capital they didn't when they started and don't really need outside investment, so why even bother with it?
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Also just watched an old video of yours on cloud mining, I can see you have CFOUR in you bitshares wallet but I can only buy it with open.btc not bridge.btc as I use cryptobridge, anyway it's cool to have your own coin, even if it has literally zero volume. Could I send you some steem on this or SBD and buy some, for the novelty effect really.
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Thanks for your thoughtful comment on cloud mining. I definitely think both companies are legit and it's almost odd that Genesis Mining got the Cease and Desist and not Hashflare. I only found out after I started with Hashflare, but I heard they had open-ended mining contracts just like Genesis Mining, but they moved everyone on those contracts to a 1 year contract. That got a ton of people upset and it shows that these companies can do pretty much whatever they want to.
As for my CFOUR coins, let me know your cryptobridge ID and I can send you a few. Cryptobridge doesn't have the option to sell User Issued Assets from Bitshares although I probably should make it available in all trade pairs that Bitshares allows me to list them in, just for the fun of it.
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pandacoins101 is my ID, thanks in advance for sending some
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now days Genesis Mining and Hashflare are good work
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nice your bitcoin post
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