The Better Business Bureau sent a consumer warning against Cointerra, a Texas-based bitcoin mining enterprise over complaints from consumers that it is yet to issue refunds.
The Austin-based company, which according to its website was founded in mid-2013, reportedly received nearly 40 complaints last month, but didn’t provide BBB with a solid reason as to why it delayed the customer refunds. Attempts by the Baltimore Sun to contact the company’s representatives went unreturned on Thursday.
Most customers who placed orders for the $6,000 bitcoin mining equipment requested for refunds after Cointerra said that the equipment would possess much lower computing speed and consume more electricity than initially advertised.
Bitcoin mining involves the use of high-powered computers to find solutions to difficult and complex mathematical models in order to publish and validate all transactions involving bitcoins in exchange for newly-formed bitcoins. Most companies, like Cointerra, deal in specialized bitcoin mining machines that assure greater returns on the expenses incurred in running the machines, such as electricity costs.
Song Smullen, a native of Brooklyn, NY and a Cointerra customer, complained to the Better Business Bureau that the specifications of the machines and electricity usage would make it untenable to make any profit from the equipment.
“Even at the specs they advertised, I would only break even in 320 days,” he said in a statement. “Without them meeting specs, I could not make back my investment.”
Cointerra, which was ranked “F” by the Better Business Bureau, has never been accredited by the nonprofit reputation ranking firm. Bitcoin is a type of peer-to-peer payment currency that is free from government or central bank control that exists solely in virtual format. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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