Bitcoin Mining Scams

What is Bitcoin Mining?

Cryptocurrency mining is the process of converting the small amount of computer processing power associated with a particular cryptocurrency into money. A cryptocurrency miner is typically a person or group of people that create transactions and work to increase the network’s efficiency. They’re in it for the money. Cryptocurrency mining is typically done by running a computer program. A person or group of people could be running a computer program or they could be buying a mining service, which helps them purchase the computing power needed to mine a cryptocurrency. Typically, you need about 30-50 gigabytes of storage space to run the mining program, and the mining results are then sent to the person/group of people running the program.

Bitcoin Mining Scams

Bitcoin mining involves getting computers to do complex calculations to “mine” for the digital currency Bitcoin. Bitcoin mining was initially supposed to be done in a decentralized manner, by users, as more and more computers were added, but it now often takes the form of organized, commercial operations.

It’s basically a lucrative business — but if you’re an uneducated investor looking to make a quick profit, you could be scammed. And you may not even know that you’re the target of a scam. Here are a few tips to mine bitcoins safely:

How to Recognize Bitcoin Mining Scams

There’s a lot of conflicting information about how Bitcoin and cryptocurrencies work. If you’re not sure what cryptocurrency is, or how you can invest in cryptocurrency, these five tips will get you started:

1. Bitcoin is not a currency

Contrary to popular belief, Bitcoin is not a currency in and of itself. Bitcoin can be used to buy items and services, but it’s not a true currency that you can use to pay for goods and services.

Instead, Bitcoin is an “cryptocurrency” or digital currency. Cryptocurrencies are not regulated by the Federal Reserve, the IRS, or any other government agency.

How to Avoid Bitcoin Mining Scams

Bitcoin and other cryptocurrencies pose an economic threat to many countries, but most people don’t know about the dangers of bitcoin mining scams, nor how to protect themselves. Many bitcoin miners are manipulating the Bitcoin blockchain to make money, which means they’re stealing funds from legitimate Bitcoin miners. The easiest way to avoid this problem is to invest in a cryptocurrency that you know isn’t being mined by shady miners.

Here are two signs that cryptocurrency is being mined by a scammer:

1. Scammers will not answer you.

2. If you’re contacted about buying “bitcoin mining equipment” or paying for Bitcoin mining fees.

these are signs that the caller is attempting to take your money or Bitcoin in return for nothing.