Many people want to earn money on cryptocurrency mining. Taking into account how much the cryptocurrency can be extracted through their mining, it becomes clear that this is a fairly profitable occupation. However, increasing number of miners makes mining more difficult and expensive. Starting to calculate primary expenses, many people understand that in order to earn money, they need to make an investment.
Today, there is a great variety of services that offer to mine Bitcoin for you. In this case, you do not need to have neither a personal computer nor a farm. It’s great when there is cloud mining without deposit and with it. Perhaps now everyone can become a Bitcoin millionaire. Or not?
To begin with, it is worthwhile to understand what real (not cloudy or cosmic) mining is.
When they say mining, they mean the extraction of cryptocurrency. And, to some extent, so it is. But the more qualified definition is as follows: mining is a calculation process to create a structural unit for the cryptocurrency platform – a new block in the chain. For the efforts to create blocks, a reward in the form of a certain cryptocurrency (new coins and / or transaction fees) is provided.
How to Mine Bitcoin and Other Cryptocurrencies?
In order to carry out complex calculations, it is necessary to have appropriate hardware. Calculating algorithms for different cryptocurrencies may differ. Accordingly, the requirements for hardware are also different. Without going into the details of the methodology of crypto mining, people use for mining use either special processors (for example, ASIC for Bitcoin mining) or GPUs (for example, GeForce GTX 1070 for ETH mining). Popularity of cryptocurrencies has pushed leading manufacturers of computer technics to release specialized mining hardware.
Is it Profitable to Mine Cryptocurrency?
A few years ago, mining was much more profitable than today. This is due to the fact that significant growth in the number of miners reduces the reward for the work done. As for mining Bitcoin, such a reward is reduced by half approximately every 4 years, while the complexity of calculations, and, therefore, the time and resources spent on them, is growing. Nevertheless, the abundance of cryptocurrencies allows us to say that mining is still a good idea.
In order to start cryptocurrency mining, an enthusiast should invest a lot of money, because computer technology for money costs and consumes a lot of electricity. In addition, it is economically feasible to create large farms that require premises adapted for this purpose.
The difficulties associated with the start of successful mining pushed enterprising people to offer cloud technologies.
Cloud Mining of Bitcoin and Other Cryptocurrencies
Cloud mining initially arose due to a sharp drop in the effectiveness of individual mining. To do this, the groups of miners are united into pools that have a high capacity and allow maximum dispensation between the pool members.
The physical pooling of computing power is usually impossible, therefore, such integration takes place in the network using cloud technologies.
However, cloud mining is rarely associated with the cloud pooling of miners’ processing power. Today you can find thousands of services that provide cloud mining services for various cryptocurrencies.
The essence of cloud mining services is as follows:
- the existence of a real mining farm;
- farm capacities are leased (based on hash per second);
- a person wishing to earn on the mining pays subscription for a certain number of capacities (hash per second);
- the profit from mining is paid to the cloud miner in proportion to its contribution.
Cloud mining is a very good topic for those who do not have the opportunity (financial or technical) to create their own farm. In addition, it can be considered an investment. The sum of such an investment depends only on the investor’s possibilities –no one is required to rent more capacities than he or she considers necessary.
Therefore, cloud mining is the use of the Internet for remote pooling of the capacities of mining farms to improve their efficiency. In addition, cloud mining in 2018 is considered as renting pool capacity to obtain a part of the extracted cryptocurrency.
How to Start Cloud Mining?
For illustrative purposes, we will show how to use the cloud mining service using the example of one of the top services – Genesis Mining. It is believed that Genesis Mining is the most reliable cloud mining website.
Having passed the simplest registration on the service, you get the opportunity to choose a cryptocurrency for mining, as well as the capacity for rent. The lease term cannot be chosen (2 years is a fixed term).
As you can see, renting 500 Mh / s for a two-year ETH cloud mining will cost $18,000.
Before continuing, we strongly recommend you to read the text of the contract. Agreeing with its terms, you enter into a contractual relationship with Genesis Mining.
Then the necessary amount must be paid for by you. The payment can be made not only with the help of credit / debit cards, but also with the help of cryptocurrency. The choice of cryptocurrencies that may be used for payment is quite wide.
Having made the payment, in return you get the hope that the mining will start on April 30, 2018 and you will really be paid something.
Why we said “get the hope”? Because it’s not that simple.
We must understand that no one wants you to earn. No one wants to give you money, even if you deserve it. Those who provide services for cloud mining, obviously, should have some kind of profit from this.
If they really have such a powerful pool, as they say, what is the sense of renting it and giving someone a part of the extracted cryptocurrency? If this is done to quickly accumulate cash, then, after paying off abstract loans, the need to lease the pool’s capacity is eliminated and becomes more loss-making than profitable.
Showing you how to use the services of Genesis Mining, we can not advise them, although we do not dissuade you from cloud mining. We just pay attention to some features of the service:
- Having registered on the Russian version of the website, it turned out that it does not spread to the English version.
- Registration is too superficial and is not even confirmed by e-mail notification.
- The contract offered by the company does not have clear provisions on obligations and responsibilities of the cloud mining service.
You can tell us about the experience of using this service, both positive and negative. Real cloud mining reviews will make this material more objective.
Scammers Offering Cloud Mining Without Investment and With It
Cloud mining has become a great way to make money. But do not rush to rent a couple of Mh / s. A lot of services want to earn on naive people who want to become Bitcoin millionaires.
The vast majority of cloud-based mining services offer you to immediately calculate your profit. Such a profit is often estimated at 500% -1000% per annum, which should alert you. As a rule, services promising such income do not have any material base, not to mention a mining farm or a whole pool. Very often, companies that offer cloud mining are Ponzi schemes. If you are fortunate to be one of the first of its members – you will receive some money. But this is not profit from mining, it is money received from other participants of the scheme. Such a pyramid can exist for a relatively long time, but it will never bring the promised income.
The use of even the most reliable cloud-building site resembles the scheme “send $ 1, get $ 10”, since a tenant (a user) does not engage in mining, and pays for mining to others, believing that the real miner will return him twice as much. Here are the most famous scam cloud mining websites in the Web:
- GAW Miners;
Another method of cloud fraud is not so long ago received serious publicity. It is about hacking of government servers, as well as servers of large companies for unauthorized use of their capacities for mining cryptocurrency. In addition, even an ordinary PC can become a little donor for mining, if its careless owner does not notice the penetration of malicious software. This is a hidden mining, hence, you should not expect any gratitude for using the capacities of your server.
The Bottom Line on Cloud Mining
The development of technologies, including cloud ones, undoubtedly facilitates human life. However, mining is a real production. In fact, cloud mining is very often not mining at all, and sometimes it is not cloud mining at all. It’s time to put up with the idea that money loves work. Do not expect that someone will mine Bitcoin for you. More and more websites offer cloud mining without investments & with bonuses in 2018. Be careful, mining without deposit is impossible.