Like any good scam, typical mining scams rely on some element of truth, and separating the truth from the lie, especially in a technically complex field can be difficult.
Let me try to break it down piece-by-piece:
- Mining is a real thing.
- Mining in a pool is a real thing.
- Participating in a mining pool is possible
If you bring your own ASIC miner and have cheap electricity.
- Investing in a mining pool is possible.
It does not require your own hardware to mine.
Some solicitations for mining investments are legitimate.
Mining requires substantial upfront investment for hardware and other costs, then returns slow, steady profits over a long time. (assuming the Bitcoin price does not drop)
Guaranteed 5x return!
Mining does not have guaranteed returns, and certainly not 5x!
Nothing is ever entirely risk-free, and if it truly is a sure-thing, then they would invest their own resources, and keep the risk-free profits for themselves.
We need your Bitcoin account / password / private key.
Mining requires expensive hardware, and lots of electricity, but does not need any of your Bitcoin info.