What is cloud mining?
Cloud Mining, or Mining in the Cloud, is a way to mine bitcoins without having to buy any hardware and without the need to own mining equipment (or mining hardware). Simply instead of buying Bitcoins, or mining with your own equipment, you buy some of the mining power, and you benefit along with other customers. This means that you only need a contract with the best Cloud Mining Services and a bitcoin wallet.
With cloud mining, a customer can purchase hardware mining capability provided in a data center. You can earn Bitcoins and other cryptocurrencies without worrying about hardware, software, bandwidth, electricity and all other things that mining is normally associated with. Bitcoin and cryptocurrency mining is done remotely in the cloud for maximum efficiency.
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Types of Cloud Mining
There are two types of cloud mining:
- Hosted mining: you send your miner to a company that provides electricity, refrigeration, and configurations. It is also possible that you rent a miner.
- Purchase of Hashing Power: it is the most popular method of cloud mining. Here you buy a quantity of hashing power (Hash Rate). Which means you don’t need to have physical mining equipment. In this post, we will focus on the Cloud Mining of this type.
Pros and cons of Cloud Mining
- Because cloud mining providers optimize everything, it yields higher profits.
- Your home will be calm and cool: no noise or heat resulting from the equipment turned on.
- Less electricity consumption: electricity bills will be much lower.
- Problems with old equipment: it is not necessary to sell miners when they are no longer profitable.
- It is not necessary to configure the bitcoin hardware.
- Less risky: the possibility of being disappointed by the team decreases greatly.
- Scam risk: you can always have bad luck and get scammed in the process.
Most cloud mining companies are scams
Because it is easy for companies to take people’s money and then not pay. A company can pretend to be a cloud mining company without any proof of owning hardware.
Never trust the “FREE” offers, nothing is free.
So remember: 99% of cloud mining companies are scams.
Cloud mining companies that don’t pay
They are cloud mining services companies, which have suddenly stopped paying without notice. Those are the so-called “scammers” as they simply close the website and party with the cryptocurrencies of investors.
The reason why there are so many cloud mining scams is that it is very easy for anyone in the world to set up a website. Once the website is set up, you can state that the company has a large mining facility.
The company can act legitimately by sending down payments to its customers. But after that exit scam.
Cloud Mining – Conclusion
Overall, cloud mining will continue to gain popularity among users. It will also increase the demand for special hardware, for Bitcoin mining, for rent.
It will also increase the number of platforms that offer professional services to miners, and will seek to position themselves as the best sites for cloud mining.