Bitcoin Trading Earnings

Bitcoin-Trader Ponzi After All? Bitcoin Withdrawals Halted This Week at Bitcoin Trader!

2014/10/17

bitcoin-trader.biz

Bitcoin Trader (Bitcoin-trader.biz), which provides bitcoin trading services to investors has been having a week long cash withdrawal difficulty.

Since all withdrawals for bitcoin trading earnings have been effectively frozen, many users are suspecting Bitcoin Trader to be a ponzi.

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UPDATE (2014/10/17) : It's Official - Bitcoin Trader Closes Operations, Plans to Declare Bankruptcy in Panama!

 

Here's how it happened:

On Oct. 7th, 2014, there was a posting on Bitcoin Trader's Facebook page that explained Bitcoin cashout requests were on hold due to 'technical issues with the key server'.

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On Oct. 8th, 2014, there was an update on Facebook stating that Bitcoin withdrawals were still on hold because their servers were 'busy downloading the blockchain to process the outstanding btc withdrawals'.  At this point, we were suspicious, but since they claimed that 'all other payment options are processed as usual', we still believed that it was just another technical issue.

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On Oct. 9th, 2014, the problem is not solved, but they report downloading 60% of the blockchain has been completed.  While dubious, we still still believe it could be a technical issue.

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However, on Oct. 10th, 2014, we see an update that trading results were 0.00% for that day.  Bitcoin Trader has never returned 0.00% in the past, and we realize there is something wrong, most likely more than a 'system error'.

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Their announcement that blockchain download has finally been completed is not very reassuring at this point.

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On Oct. 11th, 2014, Saturday, we see an update on their Facebook page that they will release an update 'soon'.  We wonder when that would be.

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We are not immune from all of these announcements as we are in midst of a small trial run with Bitcoin Trader.

We had started Bitcoin-Trader with $80 starting this June to see how their services operates, much the same way we are currently trying out Hashlet products by GAW Miners and ZeushHash.

bitcoin-trader.biz

We have already recouped more than $40 in cash (well, Bitcoins), and were waiting for Oct. 18th, 2014 when our 4-month trading contract would expire.

While we hope there would be positive updates, we are also prepared for the worst case scenario in which we don't see the rest of our money back.  We would be losing less than $40.

This week's Bitcoin Trader incident reminded us once again that crypto cloud mining and trading is a very young industry, and the risks involved in all 'contracts' are 'very high', since the players (service providers) are also young not very well intentioned.

In this sort of environment, it's important to (1) invest only amounts you feel comfortable to lose, and (2) to diversify as much as possible.

In our case, worst case scenario, we would be losing less than $40 with Bitcoin Trader, which is less than a 50% cut on our trial fees, but in our view, the risk of NOT investing in the up and coming cloud mining space is much greater than the risk of being stuck with a company that cannot deliver.

The crypto cloud mining industry is much like an emerging economy - like Southeast Asia or Africa - and things like this are bound to happen.

The risk involved is high, but the rewards are also very high, which is why frontier markets are always attractive.

We are shocked by Bitcoin Trader's news this week, but it only reminded us to be careful of the bad apples in the field, and to focus on the good apples in the field that can actually deliver.

 

UPDATE (2014/10/17) : It's Official - Bitcoin Trader Closes Operations, Plans to Declare Bankruptcy in Panama!

 

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