Cloud mining and traditional mining are very different from each other. But, what exactly it is?
Basically, when the bitcoin mining is done using the data center with shared power processing then it is known as Cloud Mining. Every process involves by-products and in mining, it is because of the energy required to drive the ASIC or GPU rig. Bitcoin mining is one of the most popular mining methods; the reason it is far from the traditional method.
In cloud mining, you need not buy any hardware for mining which implies it drop down the electricity cost linked to the machine. It’s just like everything is cooked on before and you just have to eat. The contracts are all set by the people and you only need to buy. It is a very good alternative for the people who aren’t technically minded and software/hardware escapist.
For users, those who want to enter into Bitcoin mining they can avail courses like Blockchain Certification, the reason behind that it is a great way to reduce the risk at minimal cost. Although, there is a team of skilled and experienced people in the cloud mining to get support, in case of any queries. And still, if the user feels isolated and wants to quit then there is no problem of coin disposal or selling with ASIC.
Cloud mining removes all the issues like the need of wiring, cooling, space for the machine mining and by this, it can directly add the value into our wallets. It’s obvious to expect more profit on fewer expenses when we are trading a small part of revenue and we have to pay for electricity, handle heat, noise and then when comes the point of profit we have to sell. Hence, cloud mining can reduce the cost of operation.
Sometimes, Cloud mining is also known as cloud hashing system. Bitcoin cloud mining enables the purchase of mining power from the bitcoin mining hardware despite its location i.e remote area. There are numerous companies available which offer cloud mining like Genesis Mining and Hashflare.
Hashflare offers SHA-256 mining contracts, but somehow the company has exhausted its offer until the new hardware is delivered. Whereas, Genesis mining is the biggest crypto-cloud and Bitcoin mining contract provider. Z-cash mining contract is one of the three Bitcoin mining plans.
But, the one and the most arising question is why to pay for cloud service, why not directly buy the coin if you can? The answer is simple, if you are going to play for a longer duration then this will be the best option because, in two years, you will gain 3 or 4 coins after buying the shares. But, if you are going to trade then this might not be a good option for you.
Pros of Cloud Mining contracts
- Excessive heat, noise is reduced by eliminating the hardware used in real-mining.
- No extra expenses such as setup or installation fees. In most cases, the one-time setup fee is charged.
- No ventilation problem and no pre-ordered mining hardware.
- Maintenance is taken care in cloud mining
In case, you have hash power and you are expecting that it will rise, with the rise in coin price then you are wrong, reason, hash power does not reflect the price of the coin and will remain same as before. But, it gives one benefit i.e in cloud mining, the coins are generated immediately. But it does not mean, it has all the good things, it does have the cons as well. Like, Earning decreases with time because with time it becomes difficult to manage, Contracts comes with limitations such as Hashflare with one and Genesis with two years, not all.
All the things depend on us and our chosen goal. In case, you just want to earn bitcoins then Cloud mine is not an option for you at all. Instead, direct purchase of coin will be the better option to generate revenue. Also, cloud mining is not for you when you don’t know anything about it and wants to just try. Instead of that, you can grab a small miner for your fun and trial.
But do remember “Time is money” and in this case, it is completely applicable.