Cloud Mining services are for you if you want to invest in bitcoin mining without the hassle of managing your own hardware, or, in some cases can’t invest in high priced ASIC mining hardware. You can use the cloud mining to earn your coins.
Cloud mining or cloud hashing is a brand new concept and What it means is that it uses (in most cases) shared hashing power run from remote data centres which allows users to buy mining power of the hardware placed in.
All Bitcoin mining is done in the cloud, without any offline hassle, such as electricity, hosting issues, or installation and upkeep trouble.
However, there are certain risks associated with cloud mining that investors need to understand prior to purchase.
Cloud Mining pros :
Here’s why you might want to consider cloud mining:
- No high electricity costs
- No equipment to sell when mining ceases to be profitable
- No constantly humming fans and a cooled, quiet home
- No need to invest in high priced mining hardware
- No maintenance, setups, down time
Cloud Mining cons :
Here’s why you might not want to consider cloud mining:
- Lack of control and flexibility
- Lower profits – the operators have to cover their costs after all Contractual warnings that mining operations may cease depending on the price of bitcoin
- Risk of fraud
- Less fun
Is Bitcoin Mining Profitable in 2016 ?
The short answer would be “Yes and No”. The answer is going to be different for each person asking as
Bitcoin Mining profitability depends on many different factors. In order to find out Bitcoin mining
profitability for different factors “mining profitability calculators” were invented.
Profitable Cloud Mining Bitcoin services
These calculators take into account the different parameters such as electricity cost, the cost of your
hardware and other variables and give you an estimate of your projected profit. Before I give you a short
example of how this is calculated let’s make sure you are familiar with the different variables:
Hash Rate – A Hash is the mathematical problem the miner’s computer needs to solve. The Hash Rate is
the rate at which these problems are being solved. The more miners that join the Bitcoin network, the
higher the network Hash Rate is. Here’s the Bitcoin network’s hash rate progress over time:
Here some of the most known Cloud mining providers for the 2015-2016:
Genesis Mining is the largest cloud mining provider that offers several features that are unique among all cloud mining services.
“An integrated advanced multipool is the most popular feature among our clients.”
This means that an algorithm will automatically mine the most profitable altcoins. The trading engine converts the mined coins to Bitcoin (or Darkcoin) and users will receive their payouts directly to their Bitcoin/Darkcoin wallet!
HashFlare is the newest cloud mining company in the industry, and as mentioned above, they offer both SHA-256 and Scrypt mining services. Since they were so new, they had no long track record for payouts, but after one year of using their service, I have not had any issues. They do provide a physical address for their company, and they list their team members – with photos – on their website, which is reassuring. Another nice feature they offer is the ability to switch mining pools, although as with most cloud mining services, there is no evidence that a contract is mining at a specific pool.
Although they have shared photos of their Scrypt mining operation, as well as their data center, to date they have not been able to provide photos of their Bitcoin mining operation 😉
When engaging in any type of cryptocurrency mining there are risks, but profitability is possible if you make the right choices. I’ve given you some pointers on how to decide which way to go.
Disclaimer: This article should not be viewed as an endorsement of any of the services mentioned. Please do your own research before considering investing any funds via these services.