Rainhash supposedly is a company that uses advanced cloud mining technology to mine cryptocurrencies. The company Rainhash Cloud Mining Technologies allegedly is registered in Panama.
The key thing is that Rainhash offers four investment plans with returns ranging between 12% and 25% daily.
So, is it really possible to get this kind of returns with cryptocurrency mining? No.
First of all, 12% – 25% daily mean 360% – 750% monthly and 4320% – 9000% per year. And these numbers are absolutely impossible in any legit business, cryptocurrency mining is not an exception to this rule.
Crypto mining can be a little bit profitable if you use your own hardware and is hardly profitable if you have to pay to rent it. That’s the reality. The biggest hurdle are electricity costs, because mining needs a lot of computing power.
All this means that RainHash is not doing cryptocurrency mining.
Rainhash claims to be registered in Panama. But do you remember Panama Papers? Panama is known for providing anonymity, so if the Rainhash registration is true, it only means they are trying to hide.
They also hide by accepting deposits only in bitcoins, because transactions in cryptocurrencies are more or less anonymous and irreversible.
How it really works
RainHash is just another Ponzi scheme. This type of scam collects money from people and initially pays the profits taking money from new deposits. When scammers are happy with what they collected, they run away with all the money.
We see a massive surge of these scams that abuse cryptocurrencies and often they don’t even start by paying, they just take all the money and don’t let you withdraw anything.
Rainhash is a simple scam that has nothing to do with cryptocurrency mining. Stay away from it!
If you are interested in cryptocurrencies, try a free demo account with a regulated broker to see how you can make money in trading.
But remember that trading is risky, you have to learn and build a profitable strategy before you start trading with real money.