Cloud mining is a great idea, and one I really wish I thought of myself.

It's basically when you "rent" super powered mining equipment to help you mine cryptocurrencies, and then your rent gets you a certain allocation in the miners equipment. Whatever comes from this allocation everyday is paid into your account.

Cloud mining services come on form of contracts, which can last anywhere from a month to a year. 

This means that you pay a monthly fee(usually one time) and for the time period of the contract, you continue to get what your allocation earns you.

Take for instance, you buy a $1000 contract for 6 months. And your earnings per day are $10.0 in Bitcoin.

At the end of your contract, you would have made about $1800, with a profit of $800. Not bad.

So if it's such a good idea, why are there numerous blog posts warning you not to indulge in it?

Because it has degenerated into a big scam.

The above example is a rather realistic one, although you might not get $10 a day. 

But some platforms target greedy people by offering them $50 a day for s $1000 investment. These people see dollar signs in their eyes, and dump $1000 into the 'investment'. Unfortunately, the business owners vanish after the contract expires, and you're left with no money, no bitcoin and probably no rent.

So why did it degenerate so fast? 

Simple. People got greedy, and there were others who knew how to treat greedy people.

800 in 6 months is pretty decent ROI, but some people want 8x that. And if they see a platform promising that, they jump in head first.

When it doesn't work, they blame the scam instead of blaming their greed.

There are also Ponzi scheme cloud mining services like Mastercoin.

This type relies on referrals. The more people you refer, the higher your chances of cashing out.

I was referred to it by someone who had about 60 ongoing referrals. With a $400 investment, he actually got paid over $1000 at the end of 3 months, only because we all paid $1 to buy "hashing power".  We also got paid, but we got back our $1. No profits. And there were fees too, so it wasn't exactly a dollar.

So you CAN make money off Ponzi schemes, but you'd do it at the detriment of your family and friends. 

And if the referrals stop coming in at any point, it's bye bye money.

So, with all this, are there any legit cloud mining sites?

After losing my $1, I decided to do some more intensive research before cloud mining again.

And every single company I researched had some kind of bad history, with numerous people stating the same problem: "I wasn't paid after the expiration of my contract".

I don't want to refer anyone to any platform I haven't used, so it's safe for me to say that there are no good cloud mining platforms out there. If you have used one that is paying out, you could leave your referral link down below, but only if it's paying out.

Thanks for reading guys.