The awareness of the profitability of Bitcoin is on the rise. As such, many businesses are springing up every day to gather interest and scam people.
I have been in Bitcoin mining since 2015. To date, that is 4 years and counting. So I am very enlightened. I know where to check and who to ask questions before jumping into any firm.
When Mining City first came on board, the first thing I checked is the online verification, the next thing I checked is the accessibility to the owner.
So is Mining City a scam? Is it a Ponzi scheme? Are they real? Who are those that run the affairs? Do they have customer support in place?
My Journey to a MineBest Mining Farm – Professional Hosting Provider of Mining City
I traveled down to Kazakhstan myself with some of my top leaders, and I must tell you this, the experience was mind-blowing. The team there is phenomenal. The thoroughness, the openness, and their attention to detail is impeccable.
They have a crew of 60 people, and they are hiring to increase their efficiency. The customer support is controlled 24/7 and split into 2 different time zones with almost instant response time. They even have their own in-house legal department.
Where exactly am I going with all this? People have been asking me lots of questions about Mining City. I even created a telegram group to link people with the CEO, but then, how many people can I add to the telegram group? So I have done the research, I have read everything there is to uncover about Mining City, and I was able to dig out some things about them.
The focus of this blog post will be to lay all the cards on the table for you to know some facts.
Ready? Let’s dig in.
1. Verification online
In the traditional banking setup, every country has a central bank. For instance, in South Africa, ‘The South African Reserve Bank (SARB) is the central bank of South Africa.
For Ethiopia, it is the National Bank of Ethiopia. The same thing applies to miners.
The central bank for miners is https://www.blockchain.com/en/pools. If any company or person talks to you about a new mining farm or a new mining company, get the name and confirm it straight up using this link
Now, for Mining City, they are a new company, and you won’t find them on Blockchain Pools List since the company claims to partner with the mining giants – BTC.com.
I verified the claim and went to the BTC website on https://pool.btc.com/ there are three sliders on the last slider, you will find this image below. That image verifies their partnership and the authenticity since BTC is already one of the biggest miners on https://www.blockchain.com/en/pools
2. The Reputation of the Owners
One thing that brings discredit to a business is those at the helm of affairs. Most times, people call companies a scam when they can’t find the owner of the business online.
Well, for Mining City, the owner has an online presence. But there is something I also discovered, people keep confusing MineBest and Mining City as one entity. Mining City is owned by Prophetek Ltd, and Prophetek is owned by Gregory Rogowski.
MineBest, on the other hand, provides mining services for Mining City. MineBest is in charge of the mining containers used in Kazakhstan (the mining facility of Mining City). They are also charged with equipment hosting and mining maintenance for Mining City. MineBest is owned by Eyal Avramovich. You can verify both Gregory and Eyal online.
Both CEOs were at the Mega convention we had in October. MineBest is the strategic mining partner of Mining City. Mining City has an exclusive utility agreement for the lease of facilities with MineBest. The strategic partnership is guaranteed for many years.
3. Testimonials and reviews
Mining City is relatively a new company. It is a typical example of what you can describe as the “new kid on the block”.
In line with this, just like many other cloud mining companies, you are going to find a lot of bad reviews online. You might not stumble on any testimonial yet since they are less than 1400 days in the market. So you need to be careful what you read.
If you want to be misled, you will come across three websites, they all carry the same bad review. It sounded like they were paid to make the bad reviews trend.
But if you want the truth, then you should click the LinkedIn profiles provided above and send them a message.
4. Effect of Bitcoin halving in 2020 on mining earnings?
This is a regular question that pops up regularly since people are now well knowledgeable about Bitcoin. Eyal, CEO of MineBest made this clear at the convention, he highlighted that in the first days, earnings will drop, then it will be followed by two things just like it happened it 2014 and 2017.
Miners using expensive electricity will be forced to shut down. Since Mining City uses cheap electricity, it will remain in the market. The next thing that will happen is that the bullish market will start, and it will make mining rewards more profitable.
So it is better to invest in mining before halving. Just in case you want to know at what point Mining City will stop being profitable. First, mining profitability depends on the Bitcoin hash network size. It also depends on the price of electricity. Mining City will shutdown operation only on one condition. The condition is if the network size is reduced by 70% and I don’t see that happening any time soon.
5. Mining plans and how much they cost.
There are four plans, and every mining plan starts (has a waiting period of) precisely 10 days after purchase. They also run for the same contract period of 1400 days (3 years, 10 months)
• The Standard plan that costs $500 and has a Hash rate of 5TH/s
• The Bronze plan that costs $1000 and has a Hash rate of 10TH/s
• The Silver plan that costs $2000 and has a Hash rate of 20TH/s
• The Gold plan that costs $3500 and has a Hash rate of 35TH/s
6. Frequency and mode of payout
For those asking about payment through smart contracts. Smart contracts are computer codes you store and execute across all nodes on a peer to peer network. They are used for rule-based transactions on the internet.
Smart contracts can automate a lot of things, but payment is not one of them. So Payouts are checked manually and transferred to a cold wallet. Then, every 24 hours, funds are transferred to members.
7. Profit Margin, rewards, promotion, and bonuses
As regards the profit margin, the market is very volatile, and it is difficult to make long term predictions. So what Mining City does is to keep one of the lowest utility (electricity) costs to the smallest, and that will ensure that mining is always profitable.
For promotions, what they offer is a previous month rank up promotion. Meaning, everyone who ranks up in a given month gets a reward at the beginning of the next month. Rewards are paid in BTC straight into members’ wallets.
The lowest bonus is that of a Chief Manager, which is valued at $51,500 and the most valued bonus is that of a Mayor is $101,500
8. Mining equipment and daily rewards
If any company tells you they will set your new mining equipment working in 10 or 30 days. It is a big lie. What Mining City does is to loan you the first 100 days of your mining rewards, and then they take it back slowly from your rewards.
Daily rewards have not been regular, and there are reasons. According to the CEO of MineBest, Eyal, personal hash rate and daily cost will not change throughout your contract period with Mining City. If you look at network hash rate on www.blockchain.info, you will notice that network hash power and mining difficulty both increased, yet mining earnings still dropped. Mining City and MineBest have no control over this.
But one way they take control is to ensure they don’t dilute miners. By diluting miners, I mean, some mining companies will stop buying mining equipment when difficulty is increased, and this will continue to cause earnings to drop. Mining City, on its part, has already signed an agreement with the company that produces the mining machines such that no matter the increase in difficulty, they will still be able to get the mining machines at the same discounted price.
Lastly, on this point, since Mining City and MineBest both agreed to a fair agreement, the contract period might increase automatically only for members who don’t mine to profit within the 1400 days contract period.
This is just an honest review. Like the title of the blog states – an honest review. I have done the research, and these points are just the tip of the iceberg.
I will keep you posted in my weekly emails, so stay posted. I will go a step further to burst your bubbles. So, I have laid all the cards on the table to convince you about all the fake reviews online. If you have any questions, drop them in the comment section below or contact your leader in your city.
Ensure you share this truth with your friends, don’t keep it to yourself. Get wise, stay wise.
To join Mining City, get into the comment section below or contact the leader in your city.
Apply to Work With Hanna
Get access to premium mentorship in Entrepreneurship and Blockchain