Cloud Mining Contract Statistics and Facts
Cryptocurrency mining is increasingly popular especially Bitcoin mining.
Working your way through that blockchain is a good way to get the cryptocurrency in abundant amounts. However, an alternative to buying thousands of dollars worth of computer equipment and industrial grade ventilation services is cloud mining. Cloud mining is exactly what it sounds like. Instead of mining with your own physical equipment, you use a cloud drive to do your mining. This method comes with its own advantages and disadvantages.
Some of the advantages include the lack of having to purchase all of that equipment and find the floor space to use it. As well as this, there is no need to have to ventilate anything, no excess heat, and no loud fans. Essentially, all of the disadvantages of having to mine with physical equipment are eliminated. However, there are disadvantages. Primarily fraud, the necessity of building your own hashing systems, and unreliability of the contractor to stay open indefinitely.
BitCoin Pool advertises itself as the highest paying Bitcoin cloud contractor. Essentially, you purchase a planned contract with them that you pay on monthly and per TH/s. You are essentially purchasing the rights to collect the earnings from the hashing that their servers do for you. They offer various plans that you set the price of by dragging a slider. Interestingly enough, they accept BTC as payment, so you can use your earnings to pay for your earnings with this particular cloud mining contract.
Genesis Mining allows you to use your cloud mining contract to mine through Bitcoin, Ethereum, Dash, Litecoin, and more. Their hashing is based on sha256, x11 & scypt algorithm. Their pricing scales individually with various factors including amount of electricity used and so on. Unfortunately, Genesis Mining offers no adjust-ability by slider on their plans, so you have to choose from one of the plans that they have set out for you.
According to BuyBitcoin.com, both of these companies are viable options to break into the mining scene. However, they offer some warnings about cloud mining contracts. If you’re looking to make a good amount of profit off of them, it is a good idea. But these contracts can be quite expensive. If you’re just looking to see what it’s all about and think that mining is cool, they advise newbies to just buy a USB miner for cheap. No monthly plan on them, just a one time payment. But for those among you looking to make a quite a bit of money on the blockchain, these mining companies are talking TH/s while USBs are talking GH/s. They also warn against trusting just any old company for these cloud mining contracts. Some mining contractors have actually scammed their customers in the past and defrauded them. HashOcean and Bitcoin Cloud Services are two examples of companies that have done this in the past few months. So only pick contractors who you know can be trusted. It can be tempting to try out a new company no one has heard of before, but be careful with doing that.
Some people have said that cloud mining is the best investment that someone breaking into the Bitcoin market can make. However, it can be admitted that these investments require quite a bit of money. The larger the investment, the larger the return but as we know, these things can be very risky. Bitcoin isn’t exactly going to crash any time soon but beware sticking thousands of dollars into the cloud mining area at an inopportune financial time. A $15,000 investment in Hashflare can garner you $6,947.14 per month, but that is quite a massive number to invest in anything.
Hashflare is another popular source of cloud mining. They offer instant withdrawal of funds, detailed specifics, and fixed fees that won’t change based on how much electricity they have to generate. Bitcoin cloud mining works on the SHA-256 algorithm miner and costs $0.80 per 10 GH/s, making their Bitcoin offer by far their cheapest. All of their other plans are at $1.00 or above per varying numbers of various sizes of hashes.
Now, if you are going to choose to use a cloud miner, which cryptocurrency should you choose? That is a complicated question, but CryptoCompare has a detailed analysis on whether to mine BTC or Ethereum. Their service allows you to compare currencies in live, real time. This allows you to make the investment most profitable for you in the long term instead of tossing yourself into investing in a currency that you don’t really know all that much about anyway.
In short, cryptocurrency mining is complicated and expensive whether you choose to mine yourself or mine via a cloud mining contract. But no matter what currency you choose (if you choose to mine at all), be sure to make safe and carefully thought out financial investments in the world of crypto. Stay well.Sources: