Bitcoin mining has become a profitable way to make money ever since the boom came on a few years back. Today, individuals and organizations alike scramble to set up hardware rigs that could mine cryptocurrencies to gain wealth.
Just so you know, hardware requirements for mining bitcoins are really steep. That being said, mining for bitcoins isn’t for everyone. The time and the amount of money you’ll need to invest in a bitcoin mining operation could be too much for some while proving to be a daunting task for others. It takes months, or even years for people to get back the money they invested in mining rigs.
Would you believe that now there’s a way to mine bitcoins without spending huge money on mining equipment? It’s called Bitcoin Cloud Mining. You no longer will have to pay huge costs upfront to start playing the bitcoin game.
Let’s take a look and see what it is and how it works.
There are 3 ways on how you can mine for bitcoins using the cloud- Hosted, Virtual Hosted and Leased Hashing. Hosted mining is when you “rent” a machine that’s provided by a company. Virtual Hosted is when you create a VPS, or a virtual private server and install a mining software. Leased Hashing is when you “rent” a number of hashing power without using software or hardware.
How Does Bitcoin Cloud Mining Work ?
Ever heard of a new technology called the cloud ?
The cloud is where your photos, files and data are stored. It’s also a place where computing gets done, shared by networked computers working together to achieve a common goal.
Cloud mining is the act of using computers and hardware to mine bitcoins off the internet. In simple terms, you make use of the cloud and the shared processing power via remote data centers to earn cryptocurrencies. Cloud-based bitcoin mining works like hosted servers- you pay for a monthly fee, or “rent” on a fixed contract. For example, you sign up for bitcoin cloud mining for a year and get a contract for it for a fixed price. This is much cheaper than having to physically rent the mining hardware you need to start acquiring bitcoins off the web.
Cloud mining starts as soon as you make the payment and have a ready bitcoin wallet in place.
Why Cloud Computing ?
Cloud-based bitcoin mining has become a commodity all for one reason- not everyone can afford the steep hardware requirements, let alone the time investment and the electricity bill that comes with bitcoin mining. Moreover, the whole point of bitcoin mining becomes impractical if you don’t have a ready investment in place.
It was easy to mine for bitcoins back in the day. Now, you have plenty of competition coming from all direction and the hardware requirements are becoming ever steeper. Some experts say that buying bitcoins and trading them is a more viable alternative as compared to mining them, but this isn’t the case in cloud mining. You won’t have to pay upfront for expensive equipment. You won’t even have to oversee the mining process!
Even if you were able to collect as much money to buy the equipment, you’d be wracked with huge electricity bills each month. The cost of running the equipment alone makes it harder for people to recoup their initial investment. With bitcoin cloud mining, you can outsource the mining to a country where electricity costs aren’t so high.
Cloud mining is a relatively new endeavor. As such, there are wily companies out there who want to make quick money by masquerading as a bitcoin cloud mining company. They run Ponzi schemes and tarnish the cloud mining concept and legit cloud companies. You’ll have to keep an eye out at all times so you won’t fall for scams that take away your hard-earned money.
Cloud Mining Risks
The nature of bitcoin mining is in itself a risky proposition. The risk that comes with traditional bitcoin mining is further amplified in cloud bitcoin mining. Market fluctuations are one thing, and unscrupulous organizations are another. You’ll have to do your research to find the legitimate cloud-based mining sites out of all the scam sites circulating on the web.
There have been reports about mining companies who offer cloud-based mining in order to get subscribers. As soon as they earn enough money, the site is taken offline and the investment money is gone. One red flag to check is to see if the company offers unlimited time mining. Mining efficiency gets lower each passing year, which makes mining a less profitable activity. You’ll also have to be mindful of malicious software that gets passed around thousands or even millions of computers worldwide.
Cloud Mining Benefits
A Huge Community. You can start bitcoin mining now and meet up with a large community of like minds. They can give you much-needed tips and tricks on how you can best mine bitcoins with great efficiency. You can socialize and connect with many people around the world this way.
A Worthwhile Investment. Bitcoin is huge right now. While there are a number of ways on how you can make money online, the time and effort you put in with mining will soon pay off in dividends. The growth of cryptocurrencies is advancing at a rapid pace and it will be in your best interest to join as soon as you can.
A Great Hobby. There are people who take bitcoin mining seriously, but there are others who do it for fun. In the same way The Great West started out with gold hunt, people feel excitement and thrill when mining for bitcoins that are worth lots of money.
Last but not the least, you won’t have the problem of selling your mining hardware if at any time you decide to discontinue bitcoin mining. Cloud mining takes the tedious out of traditional bitcoin mining and improves the process in every which way. The steep curve that comes with bitcoin mining is taken off; all you need now is to sign a “contract” of your choosing and cloud mining starts right away.