Mine bitcoin on your Android device

LV426 said:

I notice this app doesn't contain ads, or offer in-app purchases. Can you explain how this app generates income for you? The method of payment to you isn't really explained on your website, or in the terms of use. But I may have missed something.

Click to expand...

mikedt said:

So I guess the app's developer is at the top of the pyramid, and thus generates income for him.

Click to expand...

LV426 said:

Just to clarify, this is a pyramid payment scheme app. That means a percentage of earnings from Bitcoin mining filter up the pyramid. So more users recruited in the lower levels, results in more income for the people at the top of the pyramid.

Users should also take note of app reviews on the Play Store, and consider how the developer responds (if at all) to negative reviews and problems.

Ultimately it's up to individuals to make a choice on whether to install an app or not. In this particular case we know that the app payment scheme is a pyramid system. You should also be aware that it's very unlikely you'll make a substantial amount of money from Bitcoin mining. The hardware required to effectively mine Bitcoin is a significant investment of money, and the amount being mined from a low powered device such as a smartphone will be absolutely minuscule for you as an individual. Obviously if the developer at the top of the pyramid has enough users recruited into the scheme, then that could yield a significant amount of money for them.

Click to expand...

Hadron said:

So you deliberately didn't answer the question, which was not "how does bitcoin mining work" but "how do you, the developer, make money from it"?

I mean it's obvious that it's a pyramid, so the developer will take a cut from every user (and will probably be the only one to make anything worthwhile - that's generally the case with pyramid schemes of any sort), but your shiftiness in not answering that simple question would put me off installing even if I were interested.

Click to expand...

jMave said:

Seems like a Pyramid scheme and also a scam.
Why does this site give free advertising to these schemes.
I guess that if there is any scam/date mining involved then this site will be liable.

Click to expand...

Hadron said:

At today's bitcoin rate those payments are worth 6p in UK money, i.e. £0.06. But 10 levels of referral, even if each person only refers 2 others, is slightly over 2000 people in a single referral tree, and obviously a lot more if referral rates are higher: if each member referred 6 others then by 10 levels you have 73 million in one tree - if of course they could all find 6 people willing to join who haven't already, which is incredibly unlikely (especially since there will be more than one referral tree in existence).

This is how pyramids work, and why the only people for whom they are worthwhile are those at the top. And the nature of geometric progression is that these chains cannot become very deep before they saturate the entire population of potential referees (see example above), which means that the majority of people joining don't get anything meaningful from the scheme.

And that is why pyramid schemes are also usually referred to as "pyramid scams": they promise rewards for everyone, but really only a few at the top get anything worth the effort (and that's not a feature of a particular scheme, but intrinsic to the nature of a pyramid).

Click to expand...

LV426 said:

Thanks @Hadron. I think it's great that we're having this discussion, so that people can be fully informed, and make a decision about this app, based on knowing all the facts. Particularly with regard to payment, and who benefits the most from this.



Ah right, so you didn't make this clear when you started the thread. You're actually trying to recruit new users into the scheme to benefit yourself.

And I think people should be aware that this app will not make them any significant amount of money. It will be peanuts. The main beneficiaries are the people at the top of the pyramid.

Click to expand...