What is bitcoin mining?
Bitcoin mining is the process when computer power process transactions, secure the network and keep the system synchronized. The bitcoin mining process is completely decentralized and anyone can participate. The bitcoin mining process provides a reward to its miners in form of new bitcoins. The number of bitcoins are limited but the miners will be required to secure the network and the transactions after the last bitcoin is issued.
What is bitcoin cloud mining?
Bitcoin cloud mining is the process where you buy a bitcoin mining equipment from a company and then they run this bitcoin mining equipment for you. For this service they take a maintenance fee. You need a bitcoin wallet to receive payouts.
Are there any risks involved in bitcoin cloud mining?
There are two risks you must be aware of before you invest in bitcoin cloud mining.There is a big competetion about the new mined bitcoins and therefore the equipment can run out of profitability since all companies update all the time. If the equipment runs out od profitablility the company shut your mining contract down. The other risk is of course the bitcoin price. If the bitcoin value dips too much the equipment will run out of profitability and the company will shut the mining equipment down.
What is the advantges of bitcoin cloud mining?
- Time saving – You dont have to spend time to set up the mining park yourself.
- No specific knowledge – You buy a contract which is as easy as buying anything online. You dont need to have any specific knowledge about the mining process.
- No extra space at home – You dont run the miners at home so you dont waste space at home.
- No extra costs – You pay the contract and all the maintenance fees are included or deducted automatically from the profit. You dont have to worry about repair costs or higher electricity prices.
What are the disadvantages of bitcoin cloud mining?
- Risk of fraud – There have been and still are a lot of cloud miner scams on the internet.
- Lower payouts – It´s a bit lower payout than running the miners yourself but on the other hand these companies run such huge farms they can cut the costs pretty much.
- No control – You dont have the control over your own mining equipment. You pay someone else to have control over it. This can be bad if the company for some reasons run into problems.
Here you can find interesting articles about bitcoin cloud mining.
1. How does cloud mining bitcoin work?
2. An overview of the current state of Bitcoin cloud mining.
3. Cloud mining will profit from bitcoin price rise.
4. Only companies with strongest engineering teams…
5. Ultimate guide to bitcoin cloud mining
6. Questions to Ask Before Choosing a Miner
7. Criteria to help you spot a ponzi