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What you should know about Bitcoin Cloud Mining: Definition, Is it profitable?

Finance - Maddy - March 16, 2018

Bitcoin cloud mining requires some knowledge, for the assembly and configuration of the equipment. Now, what if someone rented us his stuff to put it under mine? Something very similar offers to mine in the cloud.

Definition of Bitcoin Cloud Mining

Mining in the Cloud is one of the many ways in which you can have access to Bitcoins. Many people prefer to do this process even they do not have the slightest chance of obtaining the cryptocurrencies. The thing is that you do not need big appliances, but a machine or companies that use essential tools. So, to start you just need the contract that offers and a wallet to save what it generates.

Is it Profitable?

Why, then, do they use that power to rent and not to mine directly? This question is straightforward to answer: if you rent your equipment instead of using it yourself, it does not matter if the cryptocurrency goes up, down, as if the profit goes up or down.

Types of Bitcoin Cloud Mining

·         Hosted: Although there is not a very common sea, it is a system in which a company takes charge of the miners of the clients. In general, the bitcoin cloud mining company is responsible for the maintenance and supply of electricity to the miner. Being a company, you can get special electricity rates and sometimes it can be more profitable than doing the process at home.

·         Purchase of Hashing Power: it is the most common method for many companies that dedicate their work to the sale of Hash Rate. When it is about this case, you don’t have the miner or know it, because the only thing you have is to subcontract with a specific company of Hash.

Bitcoin Cloud Mining Advantages

  • It does not require having physical equipment at home.
  • There is no electricity consumption because the company charges us for the power contract.
  • The expenses are more predictable and, therefore, can allow more planning.
  • There is no need to worry about updating the equipment, so you contract a specific power, the company arrives, and we enter the benefits in the money bitcoin that we have indicated.
  • It does not require significant technical knowledge because it is not necessary to configure or optimize the miner.

Bitcoin Cloud Mining Disadvantages of Cloud Mining

  • In cloud mining, there have been quite a few frauds. Therefore, it is essential to select a company with a long history and to inspire confidence. It is advisable to distrust any company that offers excellent bargains.
  • For people with knowledge, it is boring, because it does not pretend any challenge. Only benefits are contracted, paid and recovered.
  • The lack of control by the user, because in many cases the company is responsible for many processes.
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