Ice Rock Mining

saor said:
Curious to know how this works out.
Holding thumbs that you see some nice returns from this.
Click to expand...

Past experience tells me these things dont work out very well most of the time.

Nobody can predict the future bitcoin difficulty, and can therefore not predict future earnings from mining with any real certainty. This is why all these companies completely leave that part out of their 'calculators' which do nothing more than multiply a single price over X number of days. There is no mention of the difficulty adjustment every 2 weeks in their calculation formula at all. The adjustment is every 2 weeks and the last one was just over 14% increase in difficulty. That basically means a 14% decrease in profitability instantly. There has been 1, that is a single decrease in difficulty this entire year, other than that, it has always increased every 2 weeks. So every 2 weeks, pretty much the entire year, all miners earnings have decreased. See the chart of the last year at the bottom of this page: https://bitcoinwisdom.com/bitcoin/difficulty
The only reason I can think of that companies would not factor this in to their sales pages, is to deceive people, since it is such an important part of getting ROI.

The second thing is that they are taking all the BTC mining profits and using shapeshift to convert it to ETH. Anyone who uses shapeshift knows that it is always a premium price over a traditional exchange, and any commissions are factored into that. Why not use a real exchange with better liquidity, and prices? I can only think that it might be because they prefer to remain anonymous on real exchanges, or to not have anything on a real exchange tied to their bank account or ID.

They say the miners cost $2300 each, and its assumed that is for an S9, since that is in their videos, yet an S9 costs around $650 with ha PSU from bitmain, which means that the time to get ROI is a hell of a lot longer.

They give a 5% commission for recruiting other people, which comes from the other persons investment. So 5% of what you invest immediately goes to the person who recruited you and 5% needs mined extra before you break even. The commissions is where it starts to be a slippery slope to pyramid / ponzi scheme. Recruiters become the ones who do the dirty work, and they are the ones who suffer the brunt of the angry people when things dont work out.

Generally these kind of businesses will cover their own costs and pay profits for themselves first, before paying out what is left to the 'investors', which is why the company is always fine, while the users are the ones that lose out.

They are holding an ICO, which I think is 'iffy'. If the people behind the company had an actual business model that could generate revenue, they would not need to ICO. A large proportion of ICOs are scams. The ones that are not, which this might be, have a very very high rate of failure. It seems weird that a company that is advertising that they are mining bitcoin and basically printing their own money, need to ICO at all.

Too many things dont add up, and based on thousands of similar schemes that have cost people money in the past, I dont hold high hopes for it.
 
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