3 Reasons To Choose Bitcoin Cloud Mining Instead Of Buying

The most popular question in the blockchain community is the one about the future of cryptocurrencies. Is the hype is gone forever? Will we see the prices going that high again? Is it profitable to mine yourself, or it’s better to go with cloud mining? As different researches show the interest of people to blockchain and crypto is quite high. According to the ING International Survey, about a third (35%) in Europe thinks that Bitcoin is the future of spending online. And around 32% of respondents agree cryptocurrency is the future of investing.

Crypto Market Back

During the last month, the demand for cryptocurrencies started to rise again. It may confirm that significant part of one-day speculators seen back in December left the market and gave way to more reserved and professional investors.

There are rumors in the crypto market for a long time that big institutional investors might come to the market, and are going to drive the demand for crypto assets.

It’s partly confirmed by the recent news in the industry. For instance, US exchange Coinbase is planning to build out a prime brokerage platform. This way it wants to spark the interest of institutional capital, with the help of a $US20 billion hedge fund.

Moreover, as Google Trends data shows, searches for “bitcoin ETF” (exchange-traded fund) all over the world have grown 5 times in July. It also forecasts that the December searched number may be exceeded by early August.

Buying or cloud mining?

We are not going to talk about mining at home – it’s a hard thing to do at home unless you are from Finland and live at some abandoned lumber factory having all the contracts with energy company signed. We will compare cryptocurrency trading with cloud mining.

Money

It’s all about money, and to buy 1 Bitcoin now, you would need to invest around $8,000 at the moment. Sure enough, you can buy it in smaller amounts, but in the end, you would still have to pay $8,000 per 1 Bitcoin. And given, all the potential for digital assets to grow further, it’s going to be even harder to enter the market every coming day with the intention to get a decent amount of cryptocurrency.

With cloud mining website you may finally get even more than 1 Bitcoin for less money. For example, with Hashtoro.com you can pay $6000 for an annual contract for 100TH. Given the current network complexity, you can recoup your investment within one year, as you will have 1.71 Bitcoin mined. And if its price rises, the user will receive additional revenue from that growth, as happened in 2017.

Eggs in Basket

It’s worth thinking of diversification when dealing with cryptocurrencies, as there are cases when all market rushes into Ethereum abandoning previously loved Bitcoin. If you prefer to buy, it means you need to have at least three different assets in your portfolio, or you need to constantly check the market environment for the best purchase.

With cloud mining, you don’t need to worry about the diversification. The service will do it for you automatically. Hashhtoro.com mines all three cryptocurrencies, LTC, BTC, and Ethereum, in equal proportions, to spread out the risk.

For example, early in the year, it was very profitable to mine Ethereum and Litecoin, but when their prices fell, it became more lucrative to mine Bitcoin. The system determines which currency is most profitable to mine at the current moment and dynamically switches to mine that particular currency. At the end of the day, the currency is exchanged for the one the client chose to mine. The tests have shown that this allows the client to generate up to 10% more profit.

Security

The number of cases with malware and hackers stealing huge amounts of cryptocurrencies is growing fast. If you keep your crypto assets at the crypto wallet, there is always a risk to lose all.

Hashtoro.com cloud mining service never stores Bitcoin in a hot wallet. All the coins mined are transferred to cold storage and payouts are performed manually once a day. This way, no criminal can steal the Bitcoin mined by clients.

How to Earn Steady Passive Income from Cloud Mining

The rise of cryptocurrency – as traditional currencies and as platforms for other much more complex financial products – has been quite stunning and with it comes the opportunity for investment. However, the volatile nature of cryptocurrencies means that investing and making a profit in cryptocurrency is subject to crypto volatility.

1 Bitcoin was worth about $7000 in Autumn 2017 and rose to an all-time high mark of $20k, representing a 300% ROI on investment for investors who bought at $7k. However, crypto volatility set in at the beginning of 2018, seeing BTC crash to a lowly $6000, representing a portfolio-wrecking deal for investors who bought at $20k with the expectancy of a sizeable profit.

Cryptocurrency investment is not all ‘high risk, high reward’ though, there is a way to earn steady, passive income. Interesting, yes?

Cloud mining as an investment option is a much more assured way to invest in cryptocurrency and earn steady passive income.

First Things First, What’s Cloud Mining?

Essentially, mining refers to the computational process of creating more of the finite number of Bitcoins or other altcoins like Ethereum and Litecoin. Miners get rewarded with these coins when they successfully show proof of completing the complex calculations in Blockchain algorithms ahead of others.

However, as the value of cryptos began to increase, the process of creating them also became more difficult. Sadly, though, the energy and computing power requirements of operating a sustainable mining operation was soon to put it beyond individual effort, especially for those who were into it as one of their multiple streams of income drives.

Why Cloud Mining Is the Way to Go for Earning Passive income

The key reasons therefore are:

  • Ease of investment: Earning passive income shouldn’t involve the hassles of buying and managing expensive equipment to run a data center for a mining project. With cloud mining, all you have to do is leverage on the services of cloud mining sites, and you’re on your way to earning appreciable returns on your investment
  • Open to both crypto enthusiasts and non-tech savvy people: Cloud mining means you no longer have to worry with dealing with technical equipment or environments. What’s more, even the non-tech savvy individual who knows nothing about Blockchain algorithms but is interested in the money-making dimension can earn here by simply subscribing to proxy mining services offered by several cryptocurrency cloud mining sites
  • Flexible investment options: Cloud mining investment offers you options with regards to which crypto you should invest in. You could choose any one of Bitcoin, Ethereum, and Litecoin or decide to split your investment among them to avoid putting all your eggs in one basket.
  • A better sense of security through binding contracts: Cloud mining contracts give both the crypto-savvy investor and the non-tech savvy one a sense of security because it makes them have an idea of minimum expectations from each investment in buying different hashing power rates and tenure.

How Much Can You Earn via a Cloud Mining Company?

Going by currently available data by blockchaininfo.org, about 1,800 Bitcoins are mined daily. If we multiply that by a hypothetical exchange rate of 1 Bitcoin to $8,500, we’ll be looking at a daily cloud bitcoin mining returns of $15,000,000.

Let’s calculate our profit on the example of a cloud mining platform Hashtoro.com. If you purchase an annual contract for 75 TH and invest 3.000 euro, you can rest assured that after all operating costs get settled, you would have earned over 1.7 bitcoin. And that excludes the appreciation effect of a rising crypto market.

Conclusion

While there are a variety of crypto investments that you could choose from, most are ‘high risk, high reward’ in nature and you could as well make a massive profit as you could hit rock bottom.

However, if you are looking at a legitimate source of steady, passive income via cryptocurrency investment, then you should leverage the services of cloud mining companies. So, Hashtoro is a top cloud mining company that helps you get steady, passive income while essentially doing nothing.

ABOUT THE AUTHOR

Alexander Petersons, product director of cloud mining service Hashtoro.com. IT specialist, serial entrepreneur. Started his professional career in small IT companies in Europe, then moved to America for several years. Worked on the development of mobile processors in Telecommunications equipment company Qualcomm (USA).

The Relevance of Cloud Mining Investment

Cloud mining permits users to purchase mining power of the equipment set in remote data centers, rather than utilize their own machines. All the mining is carried out in the cloud, with no offline issues like electricity, hosting problems, or installation and upkeep inconvenience.

It can be defined as streamlined mining of cryptocurrencies which assuages you of power costs, 24-hour observing, programming design and the various complexities related with the exemplary production alternative on your hardware.

Cloud mining encompasses various kinds of cryptocurrencies including the likes of cloud Bitcoin mining, cloud Ethereum mining, cloud Litecoin mining and a host of others. There have been countless opinions about the relevance of cloud mining – with some parties being unsupportive of it for one reason or the other.

Well, I want to reassure you that cloud mining is here to stay and it promises enormous benefits for those who are ready and willing to roll with it. Most importantly, it takes most of the work away from mining and delivers the same if not more output as the conventional form of mining.

Why Is Cloud Mining Relevant?

Some of the core reasons why cloud mining has always been relevant and will continue to remain so are addressed in the bullet points below:

  • Low Cost of Entry and Minimal Risks

Cloud mining offers a mining framework which allows easy entry, negligible dangers, and costs. It is distinct from customary models of mining that require procurement, constant upkeep, and configuration of exceedingly specialized equipment.

  • Quick Return on Investment

Given the present system complexity, you can earn a return on your investment within a period of one year. You will have mined 1.71 Bitcoin. Besides that, if its value rises, the client will get extra income from that development, as occurred in 2017. For miners who would prefer not to manage or to purchase and set up equipment or having to deal with waste heat, cloud mining is an excellent solution.

  • High Profitability

Most individuals who have entered into a cloud mining contract have enjoyed services that allow them to receive as much as 60% of revenue for the year on their investment. Not only that, they also get a consistent increase in the rate of the cryptocurrency.

  • General Convenience

It’s very hard to set up a miner in your own flat. Indeed, even a solitary S9 ASIC miner would heat up your apartment so much that you would need to kill the warmth in the winter. Attaching, say, 3-5 to miners would require more than 5kW limit. However, an average two-room loft doesn’t get that much at the outlet. Also, the noise level would be high to the point that remaining in the flat would be insufferable.

  • Easy to Set Up and Maintain

To set up a card-based mining farm, you will need to possess certain aptitudes in gathering and setting up equipment. The most widely recognized choice is a mining farm made of six GTX1080 graphics cards. What’s more, the costs for those graphics cards can fluctuate substantially, from 550 to 1100 Euros. You would likewise need to always screen that sort of mining farm, agonizing over keeping it cool and free of residue.

  • Legally Reliable

The companies who deal in cloud Bitcoin mining, cloud Ethereum mining, cloud Litecoin mining, and any of the other respective altcoins all have a legally registered status. They are in geolocations with transparent legal norms (predominantly in Europe) and are very much reliable. For instance, Hashtoro has its data center in Norway and Finland.

  • Predictable Profit

Unlike trading stocks and shares, where there can be a decline in prices as a result of reduced demand, cloud mining contracts are protected from such market forces. It owes its immunity to the average complexity of the network and the exchange rate. Utilizing this service enables you to earn money, and a fixed amount of remuneration and recognizable pointers of the multifaceted nature of computations allows you to effortlessly predict the profitability and use the BTC cloud mining (SHA-256).

Are You Ready to Invest In Cloud Mining?

From the points outlined above, you will no doubt agree with me that cloud mining is still very much relevant today. It has also maintained its position as a great alternative to the conventional form of Bitcoin mining and other cryptocurrencies.  

Cloud mining basically follows the same process of earning digital currencies but without the investment in computing power, constant monitoring of the mining process and paying electricity bills. With cloud mining, Bitcoin miners, Ethereum miners, and Litecoin miners all have their equipment leased from service companies that have powerful data centers with farms for mining cryptocurrency.

ABOUT THE AUTHOR

Alexander Petersons, product director of cloud mining service Hashtoro.com. IT specialist, serial entrepreneur.  Started his professional career in small IT companies in Europe, then moved to America for several years. Worked on the development of mobile processors in Telecommunications equipment company Qualcomm (USA).

Since 2012, with a team of like-minded people been working towards creating their own cryptocurrency. Crypto-enthusiast, author of articles on IT and blockchain. Education:

Riga Technical University and  Cass business school (The UK), MSc in Corporate Finance.

Investing in Smart Cloud Mining: Benefits to Society and Private Capital Growth

Crypto-gold rush

After Bitcoin’s explosive growth in 2017, a fever similar to XIX century’s gold rushes embraced the world. Thousands of crypto enthusiasts turned to mine in pursuit of huge profits it promised. Many built their own home-based farms, facing and fighting such challenges as:

  • The high price of the equipment,
  • Specific mining software configuration,
  • The danger of wire overload,
  • Huge amounts of heat produced by the farms,
  • High level of noise,
  • A constant need to upgrade equipment and increase power, as the difficulty of hash calculations increases,
  • 24-hour monitoring.

There were some who turned them into advantages – for example, using servers for heating their houses during winter months. Still, building and maintaining a home-based mining farm remained a tricky business. In answer to the community’s demand, cloud mining providers started to appear to help new players try mining at a fraction of cost, time and effort.

Cloud Mining = More Profit?

Cloud mining services lease the equipment to miners according to the contract they buy. As a rule, mining in the cloud offers higher profitability. What are the reasons behind this? The equipment is more reliable, and the provider performs all the maintenance and monitoring, cutting the entry costs for new miners. Additionally, these systems use smart algorithms to choose the best strategy which would yield the highest dividends.

Still, the volume of energy consumption is colossal. This translates into a high cost of mining, up to the prospect of it becoming totally unprofitable in future – and into a serious ecological issue. Economist Alex de Vries estimates that in 2018 Bitcoin network alone will consume about 0,5% of the world’s electricity. It may not seem much at first glance, but according to Bloomberg, it is as much power per day as 30 nuclear power reactors would produce.

Given all the efforts we have put into protecting our environment in the last decades, it’s a huge throwback. The numbers above clearly show that we need to address the negative impact of mining on our ecology. And as the crypto community becomes aware of this, a new trend of smart mining services arises.

The New Age of Smart Mining

What is smart mining? In a few words, it is mining made most effective, with the help of the following strategies:

  • Optimizing the mining equipment;
  • Taking advantage of the local climate to reduce energy consumption;
  • Using sources of renewable energy instead of fossil fuels.

Many developed countries are currently in the process of switching to ‘clean’ energy sources, fully or partially. Such countries as Canada, Iceland, Norway already offer very low prices for electricity from renewable sources. Sometimes even the smart location choice will allow cutting electricity costs at least twice from the world average. So apart from the evident benefits that smart mining brings to the ecology, it also helps personal enrichment, allowing for faster profit.

Our cloud mining service, Hashtoro, is also fully powered by renewable sources of energy. It makes us one of the most eco-friendly mining services of our time, and also gives our clients the benefit of paying the lowest prices for cloud mining contracts without losing the quality of service. Hashtoro’s team believes that while blockchain is the future of many industries, renewables are the future of mining.

In addition to that, we use miners with ASIC chips, which allow us to increase productivity substantially. By the end of this year, we also plan to start creating our own, fully optimized ASIC chips.

With the help of smart mining, we can be long-term efficient and aware at the same time – and nowadays being ecologically aware is a must. It is necessary for our personal wealth, our society and the world we all live in”.

About the Author

Alexander Petersons, product director of cloud mining service Hashtoro.com. IT specialist, serial entrepreneur.  Started his professional career in small IT companies in Europe, then moved to America for several years. Worked on the development of mobile processors in Telecommunications equipment company Qualcomm (USA).

Since 2012, with a team of like-minded people been working towards creating their own cryptocurrency. Crypto-enthusiast, author of articles on IT and blockchain.

Education: Riga Technical University and  Cass business school (The UK), MSc in Corporate Finance.