The “Cloud Mining” trap

The “Cloud Mining” trap

The post The “Cloud Mining” trap appeared first on Cryptocurrency exchange: buy/sell/trade bitcoin & altcoins | iCE3X.
The Cloud Mining Fallacy, and why people do it
Cloud mining, cloud storage, cloud banking, cloud this, that and the other. Everywhere you look, you find someone offering something in the cloud. Unless you have your head in the clouds, cloud computing is affecting your everyday life.
What is Cloud Mining? 
Cloud mining is no different from using email. Simply put, you use someone else’s hardware and software to achieve a processing objective. In the case of email, you would use something like Gmail for example. Google provides the software, hardware, and resources to operate the infrastructure, you get to use the service. You can send and receive messages, files, videos, photos and so forth, you get the picture. In return, they get to analyze your behaviour and advertise to you. Ultimately they earn revenue from advertisers in a roundabout, yet clever way.
Cloud mining vendors, basically offer you the ability to print money. They camouflage the ridiculousness of their scheme in tons of multi-level marketing, frustration compounding, headache-inducing gibberish. These “snake oil peddlers” follow this up with even more nonsense about how you can make all your friends truly wealthy. They are so philanthropical, not only do they want to make you rich, the sommer want to make your friends and family rich too, after all, it would not be right for you to drive around in a new Merc all by yourself now, would it?
Marketers make the most money from referral fees. The system relies on a Ponzi mechanism of selling “mining packages” because they need to wrap it up in a mess to confuse prospective investors. Most people are lazy and do not understand or differentiate between the actual mining contract and the “subscription fee”.
Why is cloud mining a clever trap?
Some of the techniques used by these snake oil peddlers are :

Quoting, calculating and converting in mixed currencies, throwing in some percentages here and there. Most people would make a profit by simply buying and holding a cryptocurrency.
Withdrawal terms and conditions that do not allow you to ever withdraw unless you keep investing (or some variation thereof).
Social engineering your attitude towards money, by getting you to bring others that rely on your knowledge into the scheme. To save face, you have to keep it going and stay positive, resulting in most people re-investing, even though they have realized it is a scam. These cloud mining operators play on human emotion.
Some sort of points-based system that needs to be converted to a “matrix” before giving you some sort of indication of the possible BTC to Rand value of your portfolio. This is insane. Be your own bank. Buy bitcoin for Rand on an exchange like iCE3x.com, then withdraw and store your bitcoin yourself. That way you have control of your private keys. You decide when to send your bitcoin to an exchange of your choice, after which you sell your bitcoin in the currency of your choice.
Promises of untold riches, and “getting in at the start”. You have to “act fast, only a few slots left”. This is just an example of how these buzzwords are used. You are so afraid of missing out, all sense of sensibility goes out the window. This has happened to even the most seasoned investors and businessmen for as long as money has been in circulation. Just look at old “Count” Victor” who sold the Eiffel Tower,  not once, but twice …

Who profits from cloud mining and how to they trap you?
Marketers make the most money from referral fees. The system relies on a Ponzi mechanism of selling “mining packages” because they need to wrap it up in a mess to confuse prospective investors. Most people are lazy and do not understand or differentiate between the actual mining contract and the “subscription fee”.
It is usually this subscription fee that fuels users into involving family and friends, and so it just widens the net for funds to stream in. Peter then robs Paul to pay John. It usually ends in a media article about some phantom businessman that lives in a postbox, who defrauded 1000’s of people out of millions. Most of the time the same media outlet that posted the article will within 4 weeks have sponsored content posted by the same people.
It is not illegal, stupidity is not a crime
Is cloud mining legal?
It is not illegal, stupidity is not a crime. Cloud mining companies, especially the dubious ones (even legit cloud mining companies are hardly ever worth it), are very good at treading a fine line when it comes to the law. The entities behind these schemes are usually very well versed in the law and are marketing experts. They, therefore, sell you an apple that tastes like a lemon, looks like a banana and costs twice as much as a Liquifruit, all the while you think you ordered a biltong salad.

Hashflare mining suspension: reasons, aftermath and answers to questions – https://t.co/ogCeXD142W
— HashFlare (@hashflare) August 31, 2018

Should you get involved in cloud mining?
The simple answer is NO. To further explain this bold indicator (we very rarely take such a stance), we need to consider the average consumer. Most people that come across these cloud mining opportunities are neither astute investors, nor computer experts. It is, therefore, safe to assume that you are at a disadvantage in the knowledge stakes and therefore would be safer investing your funds in something you can control or have a reasonable influence on the outcome. At the very least a clear understanding of what you are investing in, what your risks are, and what your expected returns under normal conditions would be.
Have you tried to get involved in cloud mining? We would love to hear your views, so please leave a comment below.
 
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Exchange Bitcoin to Rand (ZAR)

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Are u looking to exchange bitcoin to Rand or understand how the conversion works? Learn how to convert bitcoin to ZAR. Understand the risks and find out how to trade safely and securely.
Changing BTC to Rand has become a lot easier in South Africa since iCE³X opened back in 2013.
To exchange bitcoin to rand or Bitcoin to ZAR has never been easier. You can convert your bitcoin directly to Rand with no intermediaries using iCE³X.com. You may also opt to trade your bitcoin for a selection of more than 10 other cryptocurrencies on the iCE³X trading platform.

The most secure and trusted way to convert your bitcoin to Rand (ZAR) in South Africa is by using a reputable exchange such as iCE³X.

Other riskier options are:

Sell or Buy bitcoin in person with Rand, the safest option of which is to do so at public bitcoin conferences or meetups. You should only do this if you are a seasoned trader.
Trade using social media platforms. This, however, is not a recommended method, unless you are familiar with the participants of a particular group. The fact is that there are no real financial benefits to using any other method than a trusted exchange.
Friends and family, always be conscious of the personal strains such transactions could place on these intimidate relationships. Remember that everyone values money differently.

Exchange bitcoin to Rand in South Africa safely and securely.
It is important to make sure you convert your BTC safely and easily using a trusted platform such as iCE³X. There are many “brokers” that will make this sound difficult. The most likely reason for their eagerness to “help” you is a hidden agenda to subscribe you to a plan or service for which they receive a hefty fee. Scammers even offer remote team viewer sessions where they sign you up for a valid trading account, leading you into a false sense of security that you have your own trading account.
The underlying philosophy of Bitcoin is that you can be your own bank. Once you exchange bitcoin to ZAR, you simply withdraw Rand to your personal bank account to spend according to your needs.
Always register your own account in your own name. Use a separate password for every site you visit after which you must engage two-factor authentication wherever possible.
Setting up your own account is quick and easy on iCE³X, leaving you safe and secure.
How to exchange bitcoin to Rand for investment purposes.
Be careful. Make sure that if you decide to invest in bitcoin, that you use a reputable platform such as iCE³X.
There are a few simple rules to follow when investing in bitcoin or any other cryptocurrency.

Buy directly from a trusted platform, using a market limit order.
Unless you are a day trader, withdraw your tokens to a private wallet.
Do not invest in any scheme or program which invest in or mine bitcoin on your behalf.
Do not invest in a scheme or platform that require you to invest in BTC.
Most importantly, plan your trade and trade your plan.

How to account for the dollar to Rand value of BTC/USD bitcoin.
Yes, there is such as thing as Dollar bitcoin and Rand bitcoin. “Dollar bitcoin” refers to the BTC/USD trading pair which can be found on most American and some Asian or European platforms. “Rand bitcoin” is the Rand denominated trading pair which you can find on a trusted exchange such as iCE³X in South Africa.
Bitcoin can trade with a spread of as much as 30% – 50% across geographic regions at certain times. This usually happens during periods of political unrest or financial instability.
In summary, there are multiple considerations when converting bitcoin to Rand for estimation or valuation purposes. Most importantly you need to consider and understand the risks involved with cryptocurrency trading. Finally, converting bitcoin to ZAR has been highly profitable for a lucky few with an incredible 600% increase in 2017.
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A Snapshot Of Cryptocurrency Regulation in Asia

Part 1: India, China, Japan, and South Korea
Cryptocurrency innovation can wither or flourish within a country depending on the regulatory stance taken by national governments. Heavy restrictions around ICOs may see entrepreneurs moving abroad to raise money. Strong regulations around cryptocurrency trading can create sufficient financial and operational burdens on startups to strangle innovation. Too little governance can give rise to scam cultures that harm trust and confidence in the long term. In other words, regulation is important.
 
Asia not only constitutes the biggest trading market for cryptocurrencies, it is arguably the biggest hub of cryptocurrency innovation worldwide. News and analysis is published on a daily basis regarding regulatory developments in the US market and their implications on the global market. Yet relatively little attention is given to regulatory activity elsewhere, except for when a major change of law occurred. To help remedy this, we have compiled a snapshot of the attitudes of governments and core institutions towards cryptocurrencies in Asia’s biggest markets:
 

India

The Indian government has stated that their focus is on combatting the use of cryptocurrencies for criminal activity. It does not recognise cryptocurrency as legal tender. In the words of finance minister Arun Jaitley: “The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system.”
 
In April 2018, the Reserve Bank of India, in an attack on cryptocurrency exchanges and traders, ordered banks to close all cryptocurrency-related accounts within three months. The order has been challenged in court, with a final hearing due on 11 September. The case has attracted the interest and involvement of the Indian government, the Securities and Exchange Board of India, the Enforcement Directorate, and the income tax department.
 

China

In December 2013, the People’s Bank of China (PBoC) stated that private parties can hold and trade cryptocurrencies in China, while financial institutions cannot, calling Bitcoin a virtual good that does not have legal tender status. It enforced this statement in April 2014, ordering commercial banks and payment companies to close Bitcoin trading accounts within two weeks.
 
In January 2017, the PBoC issued warnings to cryptocurrency exchanges, urging them to comply with the “relevant laws and regulations.” In September 2017, the PBoC issued a ban on Initial Coin Offerings (ICOs).
 
In spite of this strict regulation, the PBoC’s Institute of International Finance released a report identifying cryptocurrencies as a top priority in 2018. Moreover, industry insiders have argued that China is one of the “biggest advocates of blockchain technology in the world.” This support can be seen in how blockchain technology is being incorporated into major government projects, such as the Belt and Road Initiative.
 

Japan

In April 2017, Japan’s Financial Services Agency (FSA) recognised Bitcoin as both an asset and a method of payment. It also required that cryptocurrency exchanges register with the government and comply with a strict set of demands with respect to KYC, technical proficiency, security and auditing. On June 2018, it tightened this regulation by way of ordering business improvement orders to a number of major exchanges.
 
Currently, there is no legal framework for ICOs in Japan. However, a government-backed study group has laid out basic guidelines for such a framework. The guidelines set out rules for identifying investors, preventing money laundering, tracking progress on projects, and protecting existing equity and debt holders. The guidelines are being deliberated by the FSA, but may not come into law for another few years.
 

South Korea

Bitcoin is not recognised as legal tender in South Korea, but it is not illegal either. In March, 2014, while it did not have any clear regulation in place, South Korea demonstrated that it will prosecute those using cryptocurrencies for illegal activities.
 
In September 2017, South Korea’s Financial Services Commission (FSC) instated a ban on ICOs. It also made margin trading of cryptocurrencies illegal and said it would conduct on-site inspections and analyses of cryptocurrency companies, with a focus on “amend[ing] unfair terms and conditions, including arbitrary withdrawal restrictions.” However, in March 2018, a committee of Korea’s National Assembly stated it was seeking to reverse the ICO ban and bring a stronger legal framework around cryptocurrencies.
 
In June 2018, South Korea’s Financial Intelligence Unit (KFIU) said it would regulate cryptocurrency exchanges like banks. Its focus would be on implementing anti-money laundering policies and preventing the use of cryptocurrencies for financing illicit organizations.

Tax Implications for Cryptocurrency holders

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SA Revenue Services viewpoint on the Tax implications for cryptocurrency holders
The tax implications on cryptocurrency investments is a widely discussed subject. Governments all over the world have made statements. Few have made any credible laws or rules specific to cryptocurrencies. In South Africa, SARS (the South African Tax and Revenue Service), have done the same. They have however also made some clarifications.
The trading community welcomes this type of statement, but some statements may have far-reaching implications. Many professional firms are weighing in with opinions, but there seems to be few that grasp the concept of a wealth creation mechanism. You simply cannot force a cryptocurrency to have the control properties which we find in FIAT money …. unless you can control the private keys.
SARS’s Stance on the Tax Treatment of Cryptoцurrencies
The South African Revenue Service will continue to apply normal income tax rules to cryptocurrencies. As there are a few tax implications.  It will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income.

It is your responsibility as the taxpayers to declare all cryptocurrency-related taxable income.
Declare it in the tax year in which you receive it.  
Failure to declare could result in unexpected extra costs.

Taxpayers who are doubtful about specific transactions involving cryptocurrencies can seek guidance from SARS or a regulated and trusted financial advisor.
Make sure you go through channels such as Binding Private Rulings (depending on the nature of the transaction).
Increased attention and speculation regarding the future of cryptocurrencies has motivated SARS to provide direction. To show how cryptocurrencies should be treated for tax purposes. However, there is an existing tax framework that can guide SARS and affected taxpayers on the tax implications of cryptocurrencies. 
Cryptocurrency
Cryptocurrency is an internet-based digital currency that exists almost completely in the virtual realm. A growing number of supporters use this as an alternative private money. It can pay for goods and services much like normal currencies.
The word “currency” does not have a definition in the South African Income Tax Act (the Act). South Africans do not use or accept cryptocurrencies widely as a way of payment or exchange. It is not legal tender and CAN NOT attract VAT. As such, SARS do not regard cryptocurrencies as a currency for income tax purposes or Capital Gains Tax (CGT). Instead, they view cryptocurrencies as assets of an intangible nature. As a result, we have tax implications in regards to cryptocurrencies.
Tax implications in regards to cryptocurrencies in South Africa
Even though cryptocurrencies is not money, we can still value it, in terms of FIAT money. This is what we expect in the definition of “gross income” in the Act.
If you are following normal income tax rules. When you receive or accumulate income from cryptocurrency transactions, SARS will calculate tax liability on revenue account under “gross income”.
Alternatively, such gains may be capital in nature. This is spelt out in the Eighth Schedule to the Act for taxation under the CGT paradigm.
To determine if an accrual or receipt is revenue or capital in nature, one has to test it under existing law (of which there is no shortage)
Taxpayers can claim expenses combined with cryptocurrency accruals or receipts. The prerequisite is that this expenditure must be in the production of the taxpayer’s income and for purposes of trade.
If it falls within the CGT paradigm, you can also make base cost adjustments.
Gains or losses in relation to cryptocurrencies
We generally categorise gains or losses with reference to three types of scenarios.  Each of which can possibly give rise to distinct tax consequences:

Cryptocurrency can be gained through so-called “mining”. Mining is the verification of transactions in a computer-generated public ledger. ASIC computers achieve this through by solving complex computer algorithms. The “miner” receives compensation in the form of ownership of new coins. which are now part of the network ledger. This gives rise to an immediate accrual or receipt on successful mining of the cryptocurrency. This means that the newly earned cryptocurrency is “trading stock” until you sell or exchange it for cash. This can later be realized through either a normal cash transaction (as described in (2) or a barter transaction as described in (3) below.
Investors can exchange local currency for a cryptocurrency (or vice versa) by using cryptocurrency exchanges. This is originally markets for cryptocurrencies, or through private transactions.
 You can exchange cryptocurrencies for goods and services. We refer to this type of transaction as a barter transaction. Therefore the normal barter transaction rules apply.

SARS still has yet to make clear the value-added tax (VAT) status of bitcoin.
“VAT treatment of cryptocurrencies is under review according to the anual budget statement 2018. Pending policy clarity in this regard, SARS will not require VAT registration as a vendor for purposes of the supply of cryptocurrencies,” SARS said.
In conclusion, role players believe a starting point, in terms of this debate in South Africa,  has been reached. In principle, we have some degree of the regulatory framework in place. However, the practicality is that many role-players are confused as to how this will actually work. Firstly, is value in monetary terms really so easy to establish? Finally, another issue would be the exchange of cryptocurrency pairs … how will valuation work? Especially when it comes to utility coins. Intended for a function such as rewards or incentives of a non-monetary nature?
Please share this post and join in the conversation by commenting below.
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Electra (ECA) Partners with UniFox to Provide Cryptocurrency ATM & POS Machines Worldwide

The multifaceted cryptocurrency project UniFox will be adding the fast and secure Electra (ECA) currency to their international network of ATMs & POS terminals.
June 28, 2018 – – Electra (ECA) announced today that it has partnered with the UniFox project. UniFox will be Electra’s second collaboration of the 2018 mass adoption campaign. This partnership will entail the direct listing of ECA upon the UniFox Network of Payment Kiosks (ATMs) as well as their Point-of-Sale (POS) terminals. The Unifox network has a global reach – incorporating over 6,000 ATMs and over 50,000 POS terminals in the initial stages.
UniFox is a new company which has revealed its crypto-friendly ecosystem through an announcement upon the Bitcoin Forum. The announcement details the blueprint of the UniFox network, comprising a self-sufficient project of five segments: Online Exchange Platforms, ATMs, Stable Cryptocurrency (Unicash), POS Terminals, and a Decentralized Exchange.
Read more
About Electra
Electra is a community-driven, open-source cryptocurrency project featuring the ECA coin – a near instant method of transacting upon the Electra blockchain. ECA is a Proof of Stake (PoS) cryptocurrency based on the NIST5 algorithm, achieving distributed consensus and offering a quick, secure way to send money across all borders. With a team of dedicated, professional volunteers from all over the globe, and a growing community of over 35,000 members, Electra strives to reach every corner of the world by introducing products tailored to the needs of the community.
Find more information about how Electra is influencing the world of cryptocurrencies at:
Website – https://electraproject.org/.
Telegram – https://t.me/electracoineca
Twitter – https://twitter.com/ElectracoinECA
Discord – https://discordapp.com/invite/B8F7Jdv
Facebook – https://www.facebook.com/Electracoineca/
Read more
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Electra (ECA) Partners with UniFox to Provide Cryptocurrency ATM & POS Machines Worldwide

The multifaceted cryptocurrency project UniFox will be adding the fast and secure Electra (ECA) currency to their international network of ATMs & POS terminals.

 June 28, 2018 – – Electra (ECA) announced today that it has partnered with the UniFox project. UniFox will be Electra’s second collaboration of the 2018 mass adoption campaign. This partnership will entail the direct listing of ECA upon the UniFox Network of Payment Kiosks (ATMs) as well as their Point-of-Sale (POS) terminals. The Unifox network has a global reach – incorporating over 6,000 ATMs and over 50,000 POS terminals in the initial stages.
UniFox is a new company which has revealed its crypto-friendly ecosystem through an announcement upon the Bitcoin Forum. The announcement details the blueprint of the UniFox network, comprising a self-sufficient project of five segments: Online Exchange Platforms, ATMs, Stable Cryptocurrency (Unicash), POS Terminals, and a Decentralized Exchange.
Read more
About Electra
Electra is a community-driven, open-source cryptocurrency project featuring the ECA coin – a near instant method of transacting upon the Electra blockchain. ECA is a Proof of Stake (PoS) cryptocurrency based on the NIST5 algorithm, achieving distributed consensus and offering a quick, secure way to send money across all borders. With a team of dedicated, professional volunteers from all over the globe, and a growing community of over 35,000 members, Electra strives to reach every corner of the world by introducing products tailored to the needs of the community.
Find more information about how Electra is influencing the world of cryptocurrencies at:
Website – https://electraproject.org/.
Telegram – https://t.me/electracoineca
Twitter – https://twitter.com/ElectracoinECA
Discord – https://discordapp.com/invite/B8F7Jdv
Facebook – https://www.facebook.com/Electracoineca/

 

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Electra added to General Bytes ATMs

August 1, 2018, revealed another new and exciting ECA implementation. While most of us anxiously await the Electra blockchain hard fork, another announcement has been made regarding the mass adoption of Electra. General Bytes has added the Electra codebase to its current network of cryptocurrency ATMs.
Read more
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Electra added to General Bytes ATMs

August 1, 2018, revealed another new and exciting ECA implementation. While most of us anxiously await the Electra blockchain hard fork, another announcement has been made regarding the mass adoption of Electra. General Bytes has added the Electra codebase to its current network of cryptocurrency ATMs.
Read more
The post Electra added to General Bytes ATMs appeared first on MiningCave.

Web Browser Brave to Add Cryptocurrency-Based Twitter and Reddit Tipping

Those thousands of hours you spent crafting witty memes while you should have been doing your algebra homework may finally earn you more than retweets and Reddit karma.
CNET reports that Brave, the privacy-centric web browser launched by Mozilla co-founder Brendan Eich and funded by an initial coin offering (ICO), plans to roll out Reddit and Twitter tipping to its native cryptocurrency payments system.
Read more
The post Web Browser Brave to Add Cryptocurrency-Based Twitter and Reddit Tipping appeared first on MiningCave.

Web Browser Brave to Add Cryptocurrency-Based Twitter and Reddit Tipping

Those thousands of hours you spent crafting witty memes while you should have been doing your algebra homework may finally earn you more than retweets and Reddit karma.
CNET reports that Brave, the privacy-centric web browser launched by Mozilla co-founder Brendan Eich and funded by an initial coin offering (ICO), plans to roll out Reddit and Twitter tipping to its native cryptocurrency payments system.
Read more
The post Web Browser Brave to Add Cryptocurrency-Based Twitter and Reddit Tipping appeared first on MiningCave.