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.