Cloud mining allows you to access the processing power of the data center and get the cryptocurrency without having to purchase the necessary equipment, software, spend money on electricity, maintenance and so on. The essence of cloud mining is that it allows users to acquire the computing power of remote data centers.
The entire cryptocoin production process is carried out in the cloud, which makes cloud mining very useful for those who do not understand all the technical aspects of the process and do not want to run their own software and hardware. If where you live, electricity is quite expensive, for example, in Germany, then outsource the extraction process in a country where electricity is cheaper, such as the United States.
Types of cloud bitcoin mining:
There are currently three ways to conduct cloud mining:
1. Leased mining. Rent a mining machine located by the supplier.
2. Practically located mining. Creating a virtual private server and installing mining software.
3. Hash capacity rental. Rent a certain amount of hash capacity without having special physical or virtual equipment. (This is definitely the most popular way of cloud mining).
What are the benefits of cloud bitcoin mining?
– Does not deal with excess heat generated by machines.
– Avoid the constant noise of fans.
– No need to pay for electricity.
– Do not sell mining equipment if it is no longer profitable.
– No problems with ventilation of equipment, which is usually very heated.
– Avoid possible delays in the delivery of equipment.
What are the disadvantages of cloud bitcoin mining?
– Possibility of fraud,
– Bitcoin transactions cannot be verified
– If you don’t like creating your own Bitcoin hash systems, it can be boring.
– Decreased profits – cloud bitcoin mining services incur costs.
– Bitcoin mining contracts may allow the termination of transactions or payments if the price of bitcoin is too low.
– Unable to change mining software.
Cloud mining risk:
The risk of fraud and mismanagement is prevalent in the world of cloud mining. Investors should only invest if they like those risks – as they say, “never invest more than what you are willing to lose”. Explore social media, talk to old customers and ask any questions you think are necessary before investing.
Is cloud mining profitable?
The answer to this question depends on some factors that affect the return on investment. Cost is the most obvious factor. The service fee covers the cost of electricity, accommodation and equipment. On the other hand, a company’s reputation and reliability is a determining factor due to the prevalence of fraud and bankruptcy.
Finally, profitability depends on factors that no company can predict and control: just remember the high volatility of bitcoins over the past three years. If you are buying a mining contract, it is better to consider a constant price for bitcoin, as your other alternative is to buy bitcoins and expect a price increase. Another important factor is the capacity of the entire network, which depends on the number of operations per second. Over the past few years, power has increased exponentially. Its growth will continue to build on the value of bitcoin and innovation in the development of integrated circuits for specific applications.