Digging Bitcoin usually requires buying special excavators crypto, which unfortunately does not belong to the cheapest. Information about excavators and what exactly they are used for can be found in our article: “Bitcoin Excavator”. On the other hand, there is an alternative to traditional bitcoin mining. It is a cloud from which you can also dig coins. More specifically, cloud mining means using the overall shared processing power of remote data centers. All you need is a home computer, optional local bitcoin wallets and so on.
Advantages of an alternative form of bitcoin mining
Traditional mining of Bitcoin from blocks is associated with huge expenses for electricity, which excavators “devour” in quantities far above standard. The cloud, however, can save the pain in our wallets, and an additional advantage is the lack of need to buy air conditioning. There is not so much equipment that would have to go non-stop at high speed, so the room temperature rise and the deafening noise of windmills are also eliminated. The advantage of this method is also the fact that the miner does not have to worry about the supply of equipment, and then, if mining proves to be unprofitable, to get rid of it without loss. Crypto Crash Fortune app is used to deal with bitcoin currencies.
Disadvantages of cloud mining
Well, this mining method has a higher risk of fraud than the traditional form. In addition, the digging process itself is difficult to understand, especially for laymen. You need to be a great expert and have many years of experience with cryptocurrencies to understand exactly what cloud mining is all about. IT fanatics who love to assemble computers and crypto excavators will not have too much fun here, because such equipment is simply unnecessary with this method. Profits are smaller – after all, service providers cover all mining costs. Also, this form of Bitcoin mining provides much less flexibility and control during the process itself. There is also a risk of stopping mining if the price of Bitcoin it will drop too much (the process will then be completely unprofitable).
Types of cloud mining
It turns out that the decision to use this mining method can be difficult. Why? Well, there are 3 variants of cloud mining, quite different to each other. Each cloud mining have its own functions and value.
• Hosted mining
– It means renting a computer used for remote digging from the service provider
• Virtual hosted mining
– I.e. creating your own virtual server where mining software will be installed
• Leased hashing power
– By far the most popular method, using the “borrowed” hash power, without having a separate, physical or virtual computer
How to determine the profitability of such a process?
On the Internet you can find websites that offer some kind of calculators, which are designed to calculate whether it pays to become a miner at all. Unfortunately, they use equipment parameters, and in the cloud mining method such equipment is not used. And here the problem arises: how to determine the profitability of cloud mining you? After all, you can still use such a calculator, because most of them (e.g. The Genesis Block) ask you to enter the power consumption data. Most often these are costs of bills, or additional costs of purchasing equipment. On the other hand, the conversion process is not entirely simple. But we don’t have to calculate it, only the calculator, which saves us both time and nerves. Therefore, you need to calculate the cost of one kilowatt hour, and then enter the data into the calculator. This can be calculated by dividing (not multiplying) the monthly current cost by the conversion factor mentioned above, i.e. 0.744. Risk, as well as the possibility of large profits, always exists. Before making a decision, you need to think carefully about which bitcoin mining method to choose. You should also think about whether he is viable at present rate of Bitcoin and with a fairly volatile market kryp to walutowym. Rely on your entrepreneurial instincts, and you will certainly “blow up” a good opportunity.