GainBitcoin Ponzi Scheme Operator Amit Bhardwaj Takes out ads on The Hindu’s Front Page

The world of Bitcoin and cryptocurrency has seen many Ponzi schemes over the years. One of the more notorious cloud mining scams was called GainBitcoin. Its founder, Amit Bhardwaj, is a wanted man, despite there being no outstanding warrants for his arrests. He is still active in cryptocurrency to this very day, though. In fact, he has recently purchased front-page ads in The Hindu to promote his e-book.

Most Bitcoin users will have come across the name of Amit Bhardwaj. He is CEO of GBMiners, one of the many Chinese Bitcoin mining pools. However, he was also involved in GainBitcoin, a cloud mining Ponzi scheme. Being involved in a notorious scam is never good for one’s reputation, to say the least. Bhardwaj is also responsible for most of GBMiners’ hashrate, by the look of things.

Bhardwaj is not Giving up on Cryptocurrency Yet

It is not hard to see why GainBitcoin is a Ponzi Scheme, though. Promising investors a flat 10% per month is a clear sign of illegal activity. The company provides cloud mining contracts, which are on the expensive side of the spectrum. Moreover, the Ponzi Scheme relies heavily upon users bringing in new referrals. Bhardwaj has actively promoted this scam in the past. Although the company paid out most users without issues, their business model raises a lot of questions.  

It now appears Amit Bhardwaj is back with another project. No cloud mining is involved this time, though. Instead, he is promoting his e-book on cryptocurrency. Buying front-page ads in The Hindu is one way to do exactly that. Then again, the question becomes whether or not anyone should buy an e-book written by someone running a Bitcoin Ponzi scheme. Additionally, Bhardwaj is subject to a petition to have him arrested. It is unclear if anything will come from it, though.

It is evident there are a lot of questions regarding Bhardwaj and his projects. He is deeply involved in cryptocurrency, but likely not for the right reasons. Operating a dodgy website which keeps withdrawals pending for long periods of time is a big red flag. Writing an e-book about cryptocurrency is something else entirely, though. It is an interesting story to keep an eye on, that much is certain.

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The Indian cryptocurrency and fintech ecosystem has garnered a lot of interest since the “Demonetization” drive was set in motion. The increased demand for Bitcoin in the country is now complemented by the launch of a Blockchain incubator.

According to reports on Indian news media, the Indian Bitcoin company, GBMiners has laid the foundation for South Asia’s first Blockchain incubator, Satoshi Studios. GBMiners is the first Indian Bitcoin mining pool which reportedly has a 5% share of Bitcoin network’s hashing power. The fastest growing mining pool has been operational for a few months now, mining its first block in August 2016.

The Satoshi Studios Blockchain Incubator, started by GBMiners has started offering a three-month long intensive residency program in New Delhi. With the applications currently open, the selected teams are set to receive a seed funding of $50,000 which is roughly around 66.5 BTC against an equity of anywhere between 8 to 15 percent.

Amit Bhardwaj, co-founder of GBMiners was quoted by a leading Indian daily saying,

“Our vision is to build New Delhi as the blockchain knowledge hub of Southeast Asia.”

Referring the current monetary situation and the country’s position as the world’s largest remittance market,

“The times could not be better for bitcoin adoption especially with Indian economy’s biggest currency notes being demonetized recently,” he added.

Indian companies are increasingly adopting blockchain technology. Few leading banking institutions in the country have already expressed interest in blockchain based fund transfer platforms. Also, one of the country’s largest conglomerate Mahindra has entered into a partnership with IBM to develop blockchain based solutions for supply chain management.

The Big Four cryptocurrency platforms in the country — BTCX India, Coinsecure, Unocoin and ZebPay are currently trading Bitcoin at prices greater than that of the international market due to increased demand. The GBMiners’ Satoshi Studios initiative is expected to rope in some of the leading personalities from these platforms in advisory and mentoring roles.

Ref: The Hindu | Image: Satoshi Studios

India is not exactly a bright place when it comes to hosting Bitcoin mining operations, but a young startup is hoping to fight the odds for good.

GBMiners, a Bitcoin mining pool which mined its first block in August, now stands to be one of the most competitive mining pools in Bitcoin sector. At press time, it has obtained over 5% in hashpower, and is willing to walk more miles with its impressive business plan.

In a conversation with NewsBTC, Amit Bhardwaj, the co-founder and investor of GBMiners, stressed on educating masses about Bitcoin. He went on discussing the limitations an average Indian Bitcoin enthusiast face when he thinks about purchasing his/her first digital currency token.

“These are very early days for Bitcoin in India,” he stated, “people have more skepticism than fundamental understanding of the concept, once this threshold is crossed, Bitcoin will witness both the demand and adoption of the world’s 3rd largest economy and the world’s largest inward remittance market.”

Bhardwaj added that instead of influencing a potential Bitcoin-er to be an average trader, they want to make them a part of the Bitcoin creation. GBMiners’ aim, as he stated, is to convince traders and speculators to invest in Bitcoin mining operations; it not only helps investors to understand the industry, but also gives them a stronger idea about Bitcoin’stechnological and economical benefits.

That being said, GBMiners helps Bitcoin traders to do something more productive than just holding onto their investments and speculating, i.e. investing in mining operations. An efficient mining pool, which is being run by credible people, on their homeland, certainly gives these investors confidences for better returns.

Nikunj, another co-founder of GBMiners, stressed that obtaining 5% of the overall Bitcoin mining hash rate was not a simple task for their venture. He admitted that they had faced adequate roadblocks, specifically in regards to the growing monopoly of the majority of Bitcoin mining pools in the market.

“We started with putting our test servers across various existing mining pools and closely analysing the efficiencies. These early tests gave us ideas of possible areas of improvement, and we have been fairly satisfied with the efficiencies we’ve been able to achieve with GBminers. Can’t explain in detail here but we’re soon releasing our findings in a white paper for the mining community.”

India is Important to Bitcoin Sector

Indian government’s decision to ban its primary banknotes from circulation has indeed favoured Bitcoin trend in the nation, with exchanges reporting an increased demand for the digital currency. But indeed, the growth of Bitcoin in this South Asia’s emerging economy has been speculated since day one.

ZepPay, an India-based Bitcoin wallet application, has reported that they are adding 50,000 users each day amidst the growing Bitcoin trend.

GBMiners, too, believe that an increase confidence in the Bitcoin market will help accelerate the growth of their mining pool operations in India. Bhardwaj stated:

These are extremely exciting times to be a blockchain and cryptocurrency believer in India, with the recent move by Government clearly exhibiting the inherent risks associated with centralised monetary systems and the demonetisation resulting in significant devaluation in the real estate sector, I believe bitcoin is now ripe to resonate with the indian diaspora both philosophically and financially.