Bitcoin Cloud Mining


What is Bitcoin Cloud Mining

Bitcoin Cloud Mining general sense that I have to taken from several sources.

Bitcoin Cloud Mining is the process of bitcoin mining utilizing a remote datacenter with shared processing power. This type of mining allows users to mine bitcoins or alternative cryptocurrencies without having to manage their own hardware. Since Cloud Mining is provided as a service there is generally some cost and this can result in lower returns for the miner.

Types of cloud mining

Hosted mining
Lease a mining machine that is hosted by the provider.
Virtual hosted mining
Create a (general purpose) virtual private server and install your own mining software.
Leased hashing power
Lease an amount of hashing power, without having a dedicated physical or virtual computer. (This is, by far, the most popular method of cloud mining.)

Pros and Cons
There are several advantages over the normal home-mining.

Pros:
A quiet, cooler home – no constantly humming fans
No added electricity costs
No equipment to sell when mining ceases to be profitable
No ventilation problems with hot equipment
Reduced chance of being let down by mining equipment suppliers.

Cons:
Risk of fraud
Opaque mining operations
Less fun (if you’re a geek who likes system building!)
Lower profits – the operators have to cover their costs after all
Contractual warnings that mining operations may cease depending on the price of bitcoin
Lack of control and flexibility.

Source:
Wikipedia.org
Coindesk.com

Share this

Related Posts

First