Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

14-bcsLet us preface with a full disclosure.

We at CCN have previously advertised for BitcoinCloudServices.com. We do not have a complicated and expensive vetting process for advertisers. If we start to receive complaints about their services, as we have with BCS, we look into them straight away. We contacted the company after receiving complaints from readers who have not received payouts, and after a reasonable period we did not receive any response.

There are others in the news space who wish to use this as an opportunity to question our credibility, but here we are, telling the story, not hiding anything.

Also read: Bitcoin Scam Alert – BTCFlap.com

Bitcoin Cloud Services advertised with us for a couple of months. After receiving complaints and receiving no response from the company this week, we’ve decided to cancel their advertising contract and expose them here on CCN. We will do this with any bad business who comes our way.


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Unresponsive, Not Paying

The company has not made its payouts for several days, a sure sign that a Ponzi scheme is winding down. The way a Ponzi works, if you don’t know, is that new money is used to pay old buyers. Eventually new sales slow down, and the scam operator is unable to continue paying old buyers. That’s most likely what’s happening with BCS. With cloud mining scams, users are encouraged to continue re-investing their funds, so as to make even more money. In too many cases, users have eventually found themselves with nothing at all to show for their investment.

A user wrote to us just this morning, saying:

Thought you’d like to know that this BTC mining company is not paying out on contracts, not replying to emails and not answering the phones. Yet they are still taking new orders!

Indeed, nothing happens when you call the phone numbers listed on their site. It’s a very common feature of the more obvious Bitcoin scams out there: there’s a phone number, which provides a certain level of comfort to the mark. But when you call, you’re encouraged to leave a message that will never be returned.

Another outlet has also rightly pointed out that the hardware displayed on their website is most likely faked. Further, a simple analysis of their payouts make it appear that they have not made enough to make payouts, essentially operating at a loss. Now for several days they have failed to make any payouts at all, while still taking new orders.

Thus, all we can do is tell you to avoid them. Advertising is advertising; you should never trust it without research, no matter if you trust the outlet displaying it. Mining is not as easy as depositing funds into an account at some far-off “cloud mining” plant and letting it roll up into more money. That’s now how mining works. Mining is a very difficult, low-margin investment which can often lead to losses even if you’re not trusting someone else to do it for you. If you’re looking to invest your Bitcoin, find a good business plan on BTCJam.com, invest in other cryptocurrencies, or something like that. Because to date, most cloud mining has proven to be a low-profit endeavor when not an outright scam.

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Posted by P. H. Madore

P. H. Madore has been publishing since 2003. Tip: 1phmMcubFy298wujNFj6hQ1gctUBFovmL or 0xEDc20cc40cfb0CCBf67399c41B2891192a748a9A — Visit me on Steem: https://steemit.com/@phmadore and check out my weekly report on the ICO madness: https://icoweeklynews.com