Cloud Mining News & Reviews

LTCgear Scam ? We Don't Think So. Here's Why.

2014/10/16

LTCgear Scam

Is LTCgear (Litecoin GEAR) a scam?

Due to the nature of this question, there is no final answer unless LTCgear really turns out to be a scam, but we would like to express our opinion here.

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Some forum users have accused LTCgear for being a scam based on the fact that

(1) their operations are opaque

(2) The 'deals' continue to get better to keep the scam going

(3) If they were legit, then there would be no reason not to aggressively market their business which is competitive

but, in our view

(1) Operations are kept opaque to protect the business.  If LTCgear is really ahead of the competition as seen by their $5.76/MH/s price, then it is understandable that they would emphasize privacy to protect their intellectual property from possible competition.  Anonymity is often perceived negatively, but remember that 'Satoshi Nakamoto' - most likely a 'pseudonym' - invented Bitcoins, one of the greatest inventions in technology and finance, despite the fact that nobody knows who he is.

(2) Offers at LTCgear are indeed getting better, the most recent offer being 'ASIC Share 1K6X - Anniversary', which is selling at $5.76/MH/s as opposed to the competitions' prices at around $15/MH/s.  Although this could be interpreted as a possible means to continue a scam, it could be interpreted as LTCgear being ahead of competition in MH/s by a few months.  Our guess is that many cloud mining companies will be offering $5.00 MH/s by Feb. or Mar. 2014.  

(3) There are tons of legitimate companies that operate honest business that aren't very good with marketing

Another reason why we believe in the legitimacy of LTCgear is that the owner of the business, 'Chris', is a long time trusted member of Bitcoin Forum (at bitcointalk.org) and Litecoin Forum (litecointalk.org), and his postings indicate that he could very well be capable of running a Farm that is ahead of competition by a few steps.

If you read his previous postings, which are available under his alias 'Beekeeper', then you will see he is technical knowledge in crypto mining is advanced, and that he was talking about designing and producing his own ASIC boards as early as Nov. 2013, which was more than 6 months ahead of competition.

We did our own checkup by going through all of forum postings by 'Beekeeper' and going through every posting we could find on LTCgear.

Our conclusion at this point is that LTCgear is a cloud mining company that is simply one or two steps ahead of competition in product development, which 'Beekeeper', the owner, has been known to excel in.

We believe that LTCgear is not a scam.

However, since a number of once-trusted companies have gone under in the Bitcoin industry (like Mt. Gox), we believe it is extremely important to do your own due diligence with ALL cloud mining services (including LTCgear), and to only purchase mining contracts you believe in, and to purchase amounts you can afford to lose should the contract end up being breached in any way.

Hope this helps!

 

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