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Bitcoin generators sound like the easy way to mine on your laptop. You just plug your Bitcoin address into the website and let it use your laptop’s processing power to mine a specified amount of Bitcoin. Are they legit, though?
Perhaps a better question is whether you’re willing to take the chance when Bitcoin generators that advertise themselves as “free” actually surprise you by charging a mining fee before they will send you the promised Bitcoin.
That was the case for both Coin Generator and Coin Maker when I tried them. Things seemed to be going all right until they finished generating the Bitcoin I asked for, and then they produced an unpleasant surprise by demanding a fee for generating the Bitcoin before they released the payment. That puts these services in the automatic “scam” realm because, while I could see them keeping a nominal amount of the Bitcoin generated as a payoff for making Bitcoin mining easy, that means that they aren’t free like they promised they were.
So What’s Wrong With Charging A Fee For Service?
There’s nothing inherently wrong with charging a fee for providing a service as long as the service provider is willing to inform users about those fees up front. It should not be difficult for the creators of these generators to inform their users that there will be a transaction fee before they begin mining. Instead, they take the unethical and possibly illegal route of advertising their services as totally free.
The surprise fees may even be part of a Ponzi scheme that’s meant to fund payouts to future users and, as we’ve seen with every other pyramid scheme in existence, that’s not sustainable because it relies too much on a steady stream of new users. It’s going to collapse eventually and that’s not good for Bitcoin if the first impression that newcomers get of it involves them losing money to a Ponzi scheme.
That means newcomers to Bitcoin could get sucked into essentially providing free hashrate for these services and the Bitcoin network because they got suckered and don’t have the upfront Bitcoin to pay their fees.
This will wind up being a major disappointment for newcomers to Bitcoin who may be bopping around, figuring out how to get their first Bitcoin. They see only the greed and obtuse attitudes of the established Bitcoiners who created these generators. Why can they not provide the little bit of hashrate they have to the Bitcoin network without having to pay somebody else to do it?
Profitability of Coin Generators May Be a Factor
The one time I encountered a coin generator that was actually legit, it was a website that automatically had my laptop mining Dogecoin and I was actually able to withdraw it as soon as it hit the minimum withdrawal.
This nifty little website appear to have vanished into whatever void that failed websites fall into, however. Bummer! So it may be difficult for a coin generator to make enough to stay up and running without either charging a fee or overdoing it with advertising the way that a lot of faucets do.
So if I seem to bash the entire concept of coin generators that make it possible to mine Bitcoin on a laptop, it’s not because I don’t sympathize with cryptocurrency insiders who genuinely want to make mining more accessible to beginners. It’s because so many owners of these sites use dishonest tactics like not being upfront about fees to get people to use their sites.
Coin generators need to change their basic business model if they want to stay both viable and sustainable. I may have mentioned that it may be more palatable to users if generators don’t charge a “transaction fee” and simply charge a nominal percentage of earnings instead.
New users may be willing to pay 0.5% of earnings if it means that they don’t have to buy expensive mining rigs or risk getting scammed by cloud miners. That would make generators more palatable than if they try to charge Bitcoin that users simply don’t have.
The bottom line here is to steer clear of “free” coin generators that may not be free. They will charge you for the “privilege” of receiving the Bitcoin that you earned through mining.
There may be legitimate coin generators somewhere on the Internet but, if they exist, they will be honest and upfront about the fees they charge. So be careful if you run across anything that seems desperate to push the fact that it’s free, because it may not be as free as it promises.
Thanks for reading!
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