What is cloud mining?

Cloud mining or cloud hashing allows users to buy hardware-mining capabilities in data centers. Two vendors, Hashflare and Genesis Mining, have been offering contracts for several years.

With Bitcoin Cloud Mining, people can earn bitcoins without Bitcoin mining hardware, Bitcoin mining software, power, bandwidth or other offline problems.

Bitcoin cloud mining, sometimes referred to as cloud hashing, allows users to buy Bitcoin mining performance from Bitcoin mining hardware in remote data centers.

Then all Bitcoin mining takes place remotely in the cloud. This eliminates the need for owners to deal with the issues that often occur when mining bitcoins, such as electricity, hosting issues, heat, installation or maintenance issues.

Cloud Mining Pro & Contra

PROS:

  • No know-how and technical knowledge required to mine bitcoin or cryptocurrencies
  • Mining starts, so to speak, at the touch of a button and the administration is up to the respective company
  • comfortable and mostly flexible options also other cryptocurrencies, e.g. Mining (Dash, Ethereum, Zcash, etc.)

CONS:

  • Management fees vary for almost every cloud mining provider. As well as the income of the respective pools
  • Cloud mining vendors typically buy into other mining pools & dump their earnings, net of management fees & Co, so there is little decision-making power
  • the variety of providers makes the market a bit confusing, what is worth, what is not?

How does Cloud Mining work?

Each vendor has different contracts for how computing power can be purchased. Most contracts offer computing power in kilos, mega, tera or peta hashes per second.

  • H / s hashes per second 1 hash per second
  • KH / s kilo hashes per second 1,000 hashes per second
  • MH / s Mega hashes per second 1,000,000 hashes per second
  • TH / s tera hashes per second 1,000,000,000 hashes per second

This indicates how many hashes can be calculated per second to find a new valid block (What is a Block). The higher the hash value, the higher the payout will be. Another great advantage is that even with low hash values ​​first distributions are possible and not only if a new block was really found with their own hardware.

One participates in the success as a percentage. Frequently, the won Bitcoins are distributed per day, with some providers every two days or every week. Tip: Be sure to specify an external Bitcoin Wallet address and always allow the mined coins to be dispensed. Should the cloud-mining provider file for bankruptcy (or simply disappear from the scene), the Bitcoins that have been mined so far are safe.

What should I look for when choosing a cloudminer?

It is important that the provider can really prove his devices. Some providers have vehemently opposed providing evidence of the presence of miners. This quickly creates the suspicion that behind the mining business is just a big bubble in the form of a pyramid scheme that threatens to burst in not too far away time (s.u.). Of course, pictures of mining farms can be stolen, bought or forged. A provider who has not proven his farms but at all, should therefore be viewed with skepticism.

Another indicator of the reliability and reliability of a provider is often the promises made. Black sheep often promise horrendous amounts that trap victims and quickly ruin dreams of financial freedom. You should check with common sense if it is really realistic.

Here is a little Video that shows you how cloud mining works exactly. Its not to hard to understand. 😉

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