Quick explanation as to why you need to stay away from mining contracts.

I don't usually write a lot but have seen a growing number of content creators push mining contracts on their viewers and wanted to try and explain clearly how you as a viewer should stay away from mining contracts.

Let's say Fred is a popular youtuber who regularly post content and has acquired a few followers. He decides to wet his feet in the whole cryptocurrency world by buying his first mining contract, after reviewing the details of the contracts he realizes that the number that Genco mining company are offering pays back his investment in just 6 months and the rest of the yearly contract is pure profit.

After a couple of weeks Fred notices that his expected earnings are not as high as predicted and seem to keep getting lower.
Fred decides to look into why his promised profit is dropping and finds out that over time the difficulty of mining goes up meaning that his forecast was inaccurate. After reviewing his situation, he thinks he might even lose money on this.

Fred is 300 dollars out of pocket and isn't gonna be seeing any return for a while, he goes on to the mining website and notices that he can get more hashing power for free by just getting people to sign up. He believes that it's a great way to recoup his losses and decides to make a video of a great opportunity for his viewers to make money.

The only thing that his viewers as well as himself might not realize is that his ten followers who decided to use his referral and get mining contracts are all gonna be losing money unless they get other suckers to sign up with their referral codes and pass the loss on to them.

The only people making money is Fred, dragging people into a ponzi scheme, and the mining company.

Stay away from mining contracts especially if you don't like screwing people over.

Thanks for reading.