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Mining Suckers: Coinmine “Holy Shit” Scheme

Summary:
Coinmine offers a 9 mining box. Let's investigate coinmine for obvious flaws. Holy Shit Experience Obvious Losers Not everyone who buys a coinmine will lose money. Rather, the expected return from one of these units is negative from the get-go and will be increasingly negative as mining cards and the competition improves. Printing Money in Minutes?! Why not order 20? 1,000? Digging into the details For 9, the Coinmine One will sport a miner that can generate any one of the following out of the box: ether (ETH) at 29 Mh/sec, monero (XMR) at 900 h/sec, zcash (ZEC) at 320 h/sec and ether classic. With updates next year, it also expects to be able to run a stake for a Bitcoin Lightning node, Dfinity or Filecoin. It uses roughly as much power (120 watts) as a PlayStation 3 during game

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Coinmine offers a $799 mining box. Let's investigate coinmine for obvious flaws.

Holy Shit Experience

Obvious Losers

Not everyone who buys a coinmine will lose money. Rather, the expected return from one of these units is negative from the get-go and will be increasingly negative as mining cards and the competition improves.

Printing Money in Minutes?!

Why not order 20? 1,000?

Digging into the details

For $799, the Coinmine One will sport a miner that can generate any one of the following out of the box: ether (ETH) at 29 Mh/sec, monero (XMR) at 900 h/sec, zcash (ZEC) at 320 h/sec and ether classic. With updates next year, it also expects to be able to run a stake for a Bitcoin Lightning node, Dfinity or Filecoin.

It uses roughly as much power (120 watts) as a PlayStation 3 during game play and runs at 40 decibels (quiet compared to the cacophony created by other mining products).

If the company is right and consumers love it, don’t look for today’s mining hobbyists to agree. There’s nothing about its specs that compares to other miners sold on the market today that those much more tech savvy users are using. Coinmine One’s hash rate is much lower than those devices, and the price for its hash rate is higher.

Mining Suckers

Here's the deal folks, and it should be obvious.

Yes, coinmine will "mint money", for itself of course. This is called mining suckers.

If Coinmine mining actually turned a profit, the company would not be selling the boxes, they would be running a coin mining operation.

Mike "Mish" Shedlock

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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