VBit Fighting Scams: The Importance of Mining Gear Supplier Reputation

December 11, 2020 - Expert Commentary, VBit Against Crypto Scams

Bitcoin Mining gear

In this educational piece, we are taking the front-seat to educate our readers the importance of doing due diligence and outwit scammers.

“You may end up facing your destiny on the same road you took to avoid it.”

This is an all-time great quote about taking shortcuts in life. They, at times, end up being very costly. When looking for products, cheap can turn out to be expensive.

Bitcoin mining is one of those things that require fidelity to quality and professionalism. Taking shortcuts and what seem like easy ways out could be a trap. 

VBit Technologies, as part of our commitment against scams, takes informing mining enthusiasts of the importance of quality mining equipment seriously.

Online Shopping a Fertile Ground for Scammers

The internet has made the spread of information incredibly fast. A potential scammer has a reach of millions, which was not possible a few decades ago. Obviously, online shopping is great overall. 

Commerce has never been simpler.

However, it also allows some people to post unverifiable products, purportedly at a fraction of the price legitimate manufactures provide. It could be anything from sophisticated technology equipment to simple household appliances.

In 2019, the story BitClub Network broke. This was an alleged scam that swindled millions out of unsuspecting investors who thought they were investing in a pool of Bitcoin mining equipment.

The scheme went on for years until federal prosecutors began investigating. The five accused persons violated federal laws on wire fraud and securities violation. Eventually, the scam could not support its own weight, and the figures that BitClub Network reported did not make sense.

Establish the Reputation of Any Seller to Avoid Scams

The one thing that should have been a dead giveaway for investors is the absence of transparency about actual Bitcoin mining equipment in use. Unfortunately, most people were only concerned with the promise of profits and not the details as to how mining went on.

 The quote “if it is too good to be true, it probably is,” sums up this unfortunate situation.

The reality is that millions across the world fall for these kinds of schemes every year.  It is advisable to:

  1. Research the seller- any vendor who offers ridiculous returns or a rate significantly below market rates is likely a scam artist. A seller who is confident in the quality of their product will sell it at honest prices that reflect its quality.
  2. Use reputable suppliers- reputations are not built overnight, at least not in business. Reputable entities like Bitmain are the best in the business for a reason. Their equipment is tried and tested and this is why VBit, as part of our commitment against scams, takes pride in our direct line to Bitmain for mining equipment.
  3. Take cues from the commitment of the seller to their enterprise-scam artists, most times, offer scant detail, and go for empty platitudes meant to sway emotion. Genuine sellers have enough content on their website to inform miners of the nature of the activity.  Companies that actually care about their enterprise or activity back it up with depth and a show of expertise.

It is infuriating that fraudulent goods are everywhere, but it is impossible to control the internet. Luxury brands are the most counterfeited, with fake goods sold on the internet accounting for $30.3 billion in losses to luxury brands each year.

This shows that scam artists and fraudsters will want to exploit any valuable product. With a modern Antminer machine costing over a thousand dollars; it is reasonable to expect all kinds of scam artists to promise cheaper equipment without the performance to match.

It is fitting to call this era the age of scams. From catfishing, deep fakes, online pyramid schemes, and much more, the internet can be a precarious place.  Some scammers will even claim to help you take the short route to success.

Take Note of the Simple Stuff

Some scams go to great extents to look legitimate. However, others can be detected by taking note of the simple aspect of legitimacy. For websites, details like the “s” in “https” in the website address can be the difference between getting off unscathed and opening up Pandora’s Box.

An investigation by the Guardian uncovered a Bitcoin investment scam that aimed to take advantage of unsophisticated investors. Kate, a victim of the scam, lost $4,000 to the scam that operated out of Kiev, Ukraine, for simply believing that a fake impression of X-Men star Hugh Jackman promoting this investment was real.

The scam took a bait and switch approach. After investing a few hundred dollars, the site claimed that Kate’s Bitcoin had multiplied. However, when she tried withdrawing, she was told that the withdrawal limit was $10,000. 

Undeterred, she invested even more to the point that she had put in a few thousand. It is only then that she realized that the withdrawal limit was bogus and that she had been scammed.

Such is the price of making mistakes on the internet. Had she actually investigated whether Jackman really endorsed Bitcoin, she would have discovered the grift. However, she realized the price of sloppiness too little too late.

The Reputation of Bitmain, VBit Technology Bitcoin Mining Equipment Supplier

There are about four major mining equipment manufacturers, with Bitmain, Canaan, and Microbt being the industry leaders.  Bitmain is the runaway leader in the mining rig manufacture with a strong lead in the sale of ASIC rigs for the past few years.

Why is it important to mention these equipment suppliers? A professional hosted mining provider like VBit Technologies is against scams. This means that conducting due diligence to find the best in the business is a top priority. Unfortunately, there are some suppliers whose products don’t match the cutting edge requirements of the crypto mining landscape.

Bitmain has distinguished itself for a commitment to providing miners with the most efficient rigs around. It is no surprise that Bitmain is head and shoulders above other ASIC rig manufacturers in the world.

We Value Our Direct Line To Bitmain: Mine With VBit Today!

Having understood the reputability of Bitmain, it is clear why VBit Technologies decided to liaise with them for sourcing mining equipment. VBit Technologies is against all kinds of scams and fraudulent activity and decided to take up its procuring with the most established entities in the business.

Just recently, VBit Technologies purchased $8 million worth of 19 Series Antminers that will subsequently increase our aggregate operating hash rate by over 50 percent.

Commenting, Irene Gao, the Antminer Sales Director of NCSA Region, Bitmain, acknowledged the long-time collaborative partnership they have had with VBit Technologies over the last few years saying it would provide assistance as VBit expands their mining operations and presence in North America.

This partnership with Bitmain is like having the endorsement of Apple in the Smartphone business. Bitmain has distinguished itself time and again for products that strike the imagination of miners. 

We, at VBit Technologies, want our miners to also enjoy this competitive edge in Bitmain mining. For this reason, we are proud of the direct line to Bitmain for the sourcing of mining rigs. 

This means that the people we provide hosting services to have the latest equipment such as the S19 to have high efficiency always.  If VBit was anything but a company committed to the highest standards, we wouldn’t source equipment from the leading equipment supplier in the world.

The endorsement by Bitmain is precious. To quote a timeless saying:  “show me your friends, and I show you your character.” 

Partnering with Bitmain is a statement of our commitment to quality and service delivery.

Visit our Mining Shop today and get started in Bitcoin mining!

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