Among block gets a reward in bitcoins.In general

Among the range of Bitcoin scams, there has already been mention of  Ponzi and phishing schemes, but there is another very specific type of Bitcoin fraud that is similar to other frauds: mining.Mining is the basis of the blockchain system. The basic idea of the decentralized system rests with it, as people run the bitcoin blockchain on their computers and in return get a reward in bitcoins.Imagine that each block is like an Excel spreadsheet that has 1,000 lines and each transaction is one. When the sheet is filled, a new one has to be opened, but all transactions have to be audited before and the one who does it first closes the block and takes the reward in bitcoins. This is how bitcoins originate. The program is designed so that whoever processes this block gets a reward in bitcoins.In general terms, mining is already a super-competitive industry, which requires a lot of technical knowledge and new hardware or computer equipment, because whoever has the most powerful machine can mine more, so there are people from all over the world mining.There are groups of people around the world called mining pools, which pool their computational power to mine blocks and in this way distribute the obtained bitcoins.The mining process, as can be seen, is complex and technical and this is one of the reasons why fraudsters use it as a means of fraud, since in exchange for money they say they will use to buy new mining equipment, they offer a portion of the bitcoins generated by mining a block.Thus, the mining scam is that you can ask a person for money to buy computer equipment with the promise of mining bitcoins.However, it is worth mentioning that anyone can mine bitcoins on virtually any computer by downloading Bitcoin software; however, if it is a low-capacity computer, there is next to no profit.There is also the problem with lifetime cloud mining contracts. Genesis Mining is the leading cloud mining company. If you purchased 1TH from Genesis, it would cost you $150 as a initial investment. You would be able to mine about .01 Bitcoin a month, which will be less because of the fees the company takes. However, it is possible you might not even cover your initial investment, as bitcoin mining becomes more competitive. You will need more hash power to be able to make money again, that means that your initial investment will never make the same consistent profit. Your contracts will not be even able to cover power costs, which is why Genesis will cancel them. You will want your money back, but Genesis is nonrefundable. Genesis mining is selling contracts that they know will never be able to fulfill, and the user is the one taking the lose because of the inability to get the money back.In addition, very recently, there has been a new wave of free BTC mining apps that function as mobile games with claims of allowing players to be part of the cryptocurrency mining industry. Players earn points through referral links, which is why the popularity is rising. While most apps are free, the player must make an investment in the game to cash out their bitcoins, which most of the time cannot be withdrawn.However, smartphones do not resemble the processing power of a graphics processing unit whatsoever, since the best modern smartphones in the market have ARM processors that can perform a hash rate of one hash per 130 seconds, while mining hardware can hold a hash power of 5 to 15 terahash per second. This makes the idea of mining through an app practically impossible.