MineGate Scam Review
1. What is MineGate?
MineGate claims to be a bitcoin cloud mining company based in Peterborough, Canada. According to the website, Minegate has been mining bitcoins as a private company since 2012.
For some reason, the company decided to open up its cloud mining operations to public investors. Records show the company's website was registered on 03 September 2016, therefore it has been open to investors for 4 months now.
The company claims to own 3 data centres across the globe Interestingly. Minegate.org investors can expect to earn back their seed money within 3 to 4 months, thereafter start earning pure profit.
2. Is MineGate Legit?
Let me not keep you in suspense and state right away that Minegate does not look legit at all. A number of red flags make MineGate look untrustworthy: 1. anonymous owners, 2. misleading information, and 3. return on investment which looks too good to be true.
2.1 Owners Hiding Their True Identinties
The website has very little information about the company. Firstly, the website does not provide us with the names of directors or owners of the company. Suggesting that the real owner wants to remain anonymous to hide his identity.
Secondly, the website does not provide the company office address, telephone numbers, or names of anyone employed by the company.
Thirdly, the company claims to own 3 data centres but does not specify where these are located. Furthermore, it has not made any attempt to prove the existence of these data centres by showing us images or videos of the data centres.
2.2 The Website Contain Misleading Information.
When reading MineGate website information, one can’t help notice misleading information provided by the company.
For example, the company claims to have been mining bitcoins since 2012, yet it does not produce a shred of evidence to support its claims. It wants to create a false sense of trust to potential investors by misrepresenting the companys age.
The company also claims to be a Canadian company. However, the English used on its website is not of a Native English speaker. Based on English usage, the website owner or administrator seems to originate from Eastern Europe.
Finally, on checking the website’s Whois information, it turns out the company was registered by a man named Richard Branson. I don’t believe for a second that this website is owned by Richard Branson. As I said before the website administrator is not a native English speaker, and so it cannot be that an American or Englishmen owns the website.
2.3 MineGate ROI Sounds Too good to be true
Finally, the number one red flag in identifying a potential scam is the return on investment that sounds too good to be true.
According to the company website, investors can expect to make a return on their investment in 2,5 to 4 months' time, depending on the amount invested. Thereafter, they will be generating profits for themselves.
Anyone with bitcoin mining experience will tell you that such high returns are not possible for bitcoin cloud mining investors. Therefore, MineGate return on investment looks too good to be true.
In light of the information presented above, I have to conclude that MineGate is not a real company, it is a fake mining website, and therefore a scam.
If you are a newbie to bitcoin mining and don’t know how to identify scams, simply check if the website is not listed in badbitcoin.org. If it is listed in badbitcoin.org, then it is definitely a scam. But be sure not to fall for Genesis Mining, which the site promotes as a legitimate bitcoin mining company.
Bitcoin Scam Test is another useful tool to use for checking if a bitcoin mining site is a scam or not. Or simply read my post on how to review online scams.
As a rule of thumb, investing in bitcoin mining is a waste of money as almost all bitcoin mining companies are either scams or are not profitable at all. You'll be better off buying bitcoins at an exchange and keeping them long term.
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