Powerhouse Mining is a cloud mining operation that claims to pay 6 to 8% per week. Find out if it’s a legitimate investment opportunity or a scam today in our review.
What is Powerhouse Mining?
Powerhouse Mining, found online at PowerhouseMining.com, is a cryptocurrency mining company that offers mining contracts starting at $2.50 per 100 kHz. The company offers 1 year contracts that, in testing, offered returns of 6 to 8% per week. Right now, Powerhouse Mining appears to be focused on Ethereum mining.
Powerhouse Mining is led by Darren Bradbury, a UK-based entrepreneur, and Eldon Conceicao, a US-based web and software developer. The last time we heard about these two, they were associated with an Ethereum mining scam called Ethereum Pro. Powerhouse Mining seems to make many of the same promises and claims as Ethereum Pro.
Obviously, the mining industry is filled with scams today. There are some legitimate mining companies out there, although there are also plenty of dishonest companies. Is Powerhouse Mining a legitimate mining company? Or is it yet another scam?
How Does Powerhouse Mining Work?
One of the unusual things about Powerhouse Mining is that the company doesn’t provide much information about itself upfront. The company’s website has virtually no information about their mining operation – like where it’s based, what type of miners it uses, and what type of hashrate it delivers.
Meanwhile, the FAQs page seems more focused on explaining the referral bonuses for Powerhouse Mining instead of explaining the actual mining operation.
When you dig a little deeper into Powerhouse Mining, you’ll realize what’s going on here: Powerhouse Mining doesn’t appear to focus much on Ethereum mining. Instead, the “mining contracts” appear to just be a front for a membership-based pyramid scheme or multilevel marketing scheme. You pay to join the company. Then, the only way to make money is to refer other people to the company. It’s unclear how much money you can make from mining because Powerhouse Mining doesn’t provide this information upfront.
Obviously, we’ve seen similar schemes work this way in the past. They all seem to work in the same way:
- You pay money to join the company
- You earn a very small amount of money through mining (say, 25 cents a day)
- The only way to make a positive return on your investment is to refer other people to the pyramid scheme and make money from their membership fee
We’re not saying Powerhouse Mining is definitely a pyramid scheme. However, based on all of the information we can find online and at the official website, and the fact the founders have been linked to scams in the past, the company gives us little reason to believe it’s a legitimate enterprise.
How Much Money Can You Make?
Powerhouse Mining is vague about its earnings opportunities. The company frequently mentions the fact that its members will gain “financial freedom”. When you see the word “financial freedom” mentioned online, it’s a good chance you’re about to be pitched by a MLM scheme.
The Powerhouse Mining FAQs page provides more information about how much money you can make with the company:
“Members can expect an average yearly return of between 250-300% on the Cryptocurrency value they have committed to mining contracts in Powerhouse Mining.”
In other words, if you buy a $1,000 mining contract with Powerhouse Mining today, you can “expect” that money to turn into $2,500 or $3,000 in just one year. It’s rare to see an investment offer returns like this – especially “guaranteed” returns.
Powerhouse Mining Pricing
Powerhouse Mining requires you to pay a membership fee to start earning money with the company. You can buy a mining contract for as little as $2.50. Mining contracts are customizable based on the amount of money you wish to put in, and there’s no upper limit to your deposit.
Who’s Behind Powerhouse Mining?
Powerhouse Mining provides no address, no office location, and limited information about its management team online. The company’s “Contact Us” page features just a single email entry form.
The only information we have about the creators of the company are two names: Darren Bradbury and Eldon Conceicao.
There’s limited information online about either of these two individuals. However, they’ve been associated with Ethereum-based pyramid schemes in the past, including Ethereum Pro. Both Ethereum Pro and Powerhouse Mining appear to be operated by the Powerhouse Network, a multilevel marketing company active across the United States and Canada.
Ethereum Pro appeared online in June 2017. It seems like the two founders created Powerhouse Mining soon afterward.
Conclusion: Is Powerhouse Mining A Scam?
Powerhouse Mining appears to be a scam. The company’s founders have been associated with blatant pyramid schemes and MLM scams in the past – particularly involving Ethereum. Meanwhile, the Powerhouse Mining website features no information about the products or services being sold. We don’t know where the company’s mining operation is located, or what types of rigs they’re using.
Despite the lack of information, Powerhouse Mining promises to pay you 250% to 300% ROI every year.
Ultimately, based on all of the information we can find online, Powerhouse Mining appears to be another cryptocurrency mining scam.