Cloud mining is a process of obtaining Bitcoins with the use of a remote data processing center with the general computational power. This allows the users to mine Bitcoins or alternative cryptocurrencies without controlling the equipment directly.
Most of all, the services of the cloud mining are used by the users from the countries with an expensive electric power supply, which doesn’t allow them to create mining rigs by their own.
Another option is a private virtual service, where a user installs the mining software.
Finally, a user may take the computational powers themselves by using already the results of their work and not coming in touch with physical or virtual servers.
Advantages of Cloud Mining
1. Absence of fans noise and overheating because of processors.
2. Decrease of the electric power consumption.
3. No need to control, set up or repair the equipment.
Disadvantages of Cloud Mining
1. The lease expenses increase the final mining cost, which influences the final income.
2. Minimum control and absence of a possibility to select one or another service (as a rule, providers themselves distribute the tenants between them).
3. Fraud risk. Companies in this segment usually don’t work transparently and there are no leverages for them.
When Cloud Mining is an Optimal Solution
1. You have no possibility and desire to deal with mining by your own.
2. You live in a country with high electric power supply rates.
3. You have enough resources to invest in the cloud mining, while this is the money that you are ready to risk.
4. You have calculated necessary powers to ensure that your expenses have been repaid.
5. You have carefully investigated the cloud mining market and found a company, which can provide these powers at an affordable price and possesses a positive reputation in the users’ community.
Examples of Services for Cloud Mining
- Hashflare. Offers production contracts using the SHA-256 and SCRYPT technology. The payouts are made in BTC. The clients have to buy no less than 10 GH/s. A one-year contract costs $1.5.
- Genesis Mining. Is the biggest provider of Bitcoin cloud mining. Contracts for the production of the Zcash crypto currency are also available. A two-year lease contract for the power of 30 MH/s costs $869.
- Hashing 24. Has been dealing with the development of Bitcoin since 2012. Has mining rigs in Iceland and Georgia, where modern chips ASIC by BitFury are used, ensuring the maximum productivity and efficiency. A one-and-a-half-year plan for 100 GH/s costs $34.
Hashnest. At the moment it has over 600 Antminer S7s for lease. One Antminer S7 can be leased for 22900 RUR.