Cloud mining (or cloud hashing) is a new online concept, which allows users to create pools but not individually. They are able to make an aggregate mining with other users mar they used this concept. When the bitcoin mining is create in the cloud, the users will avoid the problems such as: hosting, electricity consumption, soft installation, connectivity issues, extra payouts, annoying noise and many others. Bitcoin Cloud mining is more advantageous for users because they will earn extra revenue avoiding the normally risks.
There are 3 ways to do Bitcoin cloud mining (cloud hashing):
- Leased hashing – lease an amount of hashing power, without having a dedicated virtual computer.
- Hosted mining – lease a mining machine that is hosted by the provider.
- Virtual hosted mining – create your own virtual server where you will install your mining software.
Cloud mining companies
Started by CEX.IO as the first cloud mining company in October 2013, cloud mining service is now provided by such companies as Genesis Mining and others.
The main locations of such farms for the extraction of cryptocurrency are countries that have any advantages in this direction:
- China – cheap electricity and affordable equipment,
- Iceland – the possibility of natural cooling,
- Estonia – tax incentives for this type of activity.
In such industrial farms using specialized equipment – ASICs. The profitability of cloud mining consists of the product of leased capacity (the number of coins mined) and the current rate of the extracted cryptocurrency. During the validity of the contract (usually 1-2 years), you get the extracted cryptocurrency, which is displayed on a personal wallet or reinvested to rent additional capacity (as you want).
