Cloud mining and how it works.
Cloud mining works by pooling together the resources of various computers that are connected with the sole purpose of mining crypto coins.
Some personal opinion believes that cloud mining is a good way to mine crypto coins because you don’t need to own any physical hardware in order to mine. Instead, you can sign up for one of the several cloud mining services available online, and you are good to go.
Once you join a cloud mining service, you are assigned a machine within their network that you rent for mining.
Depending on your budget, you can rent more powerful rigs or add more machines to your monthly plan. The cloud mining provider does all the dirty work, maintaining the machines and setting them up for mining. So it’s completely hands-free and you can go about your day to day routine while your surrogate miners generate coins for you.
Bitcoin and Ethereum cloud mining:
The first thing to do before mining Bitcoin or ETH is to equip yourself accordingly. Indeed, even if it were possible to mine with a simple computer a few years ago, it would now be difficult. Initially, the miners provided their own computers and graphics cards.
In order to have sufficient mining capacity, it was necessary to invest and build what is called a mining RIG. It is a computer with ultra-powerful graphics cards and other special configurations. This form of traditional mining has various disadvantages, including the need to invest in adequate equipment and the more or less rapid obsolescence of this equipment.
However, if you want to avoid such an investment, you can now use cloud mining. It is a system that allows you to use the equipment that another company makes available to you for a rental contract. That is, you will rent the equipment from this company instead of investing in your own equipment.
In Europe, most of these companies are based in Eastern Europe because the cost of energy is lower. At the global level, these companies are located where they can find large warehouses for a lower cost but also where electricity is the cheapest as it is the most important cost parameter related to mining.
Meanwhile, there are also disadvantages associated with this method, such as the initial investment, which is sometimes significant without any physical compensation.
There are also a lot of scams and legal uncertainty is important. For example, most contracts leave the cloud mining company the prerogative to suspend its activities almost arbitrarily if it can no longer generate profits. To avoid this, it is better to privilege reputable contractors to sign a cloud mining contract.
Genesis Mining is the largest supplier of Bitcoin Cloud Mining and other crypto-currencies. It offers a wide range of mining options at reasonable prices. with the possibility of miner Ethereum. Hashflare about profitable Cloud Mining contracts. you can mine Ethereum and payments are on demand. Customers must buy at least 10 GH / s. Recently it has become safer to buy Bitcoins than to mine them.
As Bitcoin became popular and with the senseless price increase in the last quarter of 2017, mining Bitcoin became quite difficult. In particular because 18 million (out of 21) are already mined, the level of difficulty of the operation has increased The reward is halved every four years – what started with 50BTC is now 12.5 BTC per block.
Since many people are entering this sector, competition is increasing enormously and, in fact, you are unlikely to undermine an entire block. This means that the reward would be shared between hundreds (or thousands) of minors.
In conclusion, Bitcoin mining is not as profitable as it was at the beginning, when people could mine with their basic computer systems and without any sophisticated configuration.
Credits: Salomon Ptit Haddad, Raj VardhmanJOIN OUR COMMUNITY