What is Cloud Mining?

Finrazor.com presents an overview of a cloud mining as an alternative to traditional mining, the reason for purchasing a cloud mining contract and the differences in prices as well as the list of cloud mining providers

If you are thinking about to become a Bitcoin or Litecoin miner, for instanсe, and have started to choose an appropriate hardware, don't hurry up. You'd better get familiar with the following article which explains the technology of cloud mining and who knows, maybe will help to save space in your room.

If you are not particularly tech-savvy, mining can be a pretty tough job for you. Luckily, you can still make money from mining without having to manage your own hardware. Cloud mining, as an alternative to traditional mining, lets you use shared processing power from remote data centers. There are generally three cloud mining options you can choose from:

  • Leasing a physical mining farm from a provider;
  • Creating a general-purpose Virtual Private Server, which you can then configure to be your mining farm by installing necessary software;
  • Buying a cloud mining contract, which is the easiest and most popular thing among cloud-mining investors.

What is a cloud mining contract?

By purchasing a cloud mining contract you essentially rent a portion of the mining company’s hashrate, which is usually measured in gigahashes per second (GH/s; one billion hashes per second). During the period of the contract, you will be receiving a percentage of the company’s profits from mining. Your percentage is based on how large of a portion of the company’s total hashrate you own.

What should I know?

Prices for cloud mining contracts vary depending on cryptocurrencies and, of course, on their providers. Bitcoin contracts are usually the cheapest at only about $0.6 for a 10 GH/s year contract. Scrypt-based cryptocurrency (such as Litecoin) contracts cost considerably higher with around $2 for a 1 MH/s year deal (one million megahashes per second).

The total bitcoin hashrate is, at time of writing, 44 million TH/s (terahashes, trillion hashes). This means that a 10 GH/s bitcoin contract is not even close to making any reasonable profit. You might have to invest into cloud mining contracts as much as you would spend on a complete mining rig, and still expect lower returns because cloud mining is offered as a service, which usually entails costs for the provider.

Cloud mining is also a good investment if electricity costs are high in your country. Owning a mining contract lets you bypass this problem, as all the hardware maintenance costs reside on the provider’s shoulders.

How to choose a provider?

On the other hand, cloud mining implies certain risks, as you, as a customer of a cloud mining service, do not have access to the information about the actual profits of the company. For the same reason, you cannot calculate the profitability of a mining contract for a certain amount of hash power. This is why you should be most careful about choosing your cloud mining provider: pick an already established company with a good history and read their user feedback on forums, such Bitcointalk. Some of the widely known and reliable cloud mining companies include Hashflare and Genesis Mining, though you should only act at your own risk.

Related news

SonicX: New Blockchain Platform as a Competition to Libra?

Coinspeaker SonicX: New Blockchain Platform as a Competition to Libra?SonicX, a blockchain platform that provides trust, top-notch security and efficiency decided to develop a payment gateway that facilitates not only peer-to-peer transactions but also a tokenized system for content storage and online gaming.Appreciating the natural fit of blockchain decentralized platform and secured payment system for businesses like gaming, the SonicX team provided solutions to these challenges by building a decentralized platform for the internet users — using the SOX token; a blockchain architecture that has scalability at minimum cost and an ecosystem that will enable internet users to have their own digital governance.This blockchain platform is based on Tron’s architecture. As per that, SonicX will also be able to take advantage of Tron’s features. Some of the advantages include huge increasing of the platform’s TPS (transactions per second) and implementing its own digital governance that allows token holders to have voting rights that benefit the community in global.However, it is important to mention that the token (SOX) can also be used for making cross-border payments and that is what it makes it stand out as a potential global competitor to Facebook’s Libra currency.Big tech companies like Apple, Google, and Facebook have become stock market sensations, but it’s high valuations cannot really help them in the FinTech space. In fact, success could show as of a big problem for any tech major that wants to enter the payments space.As it’s already known, Facebook’s coin would be based on a very different idea than Bitcoin.Unlike Bitcoin, which is an open system, Libra is closed and will be highly protected.Facebook announced the currency in partnership with 27 major corporations including Visa, Mastercard, Lyft and Uber. These founding members constitute the Libra Association, which will be in charge of processing transactions for the network and maintaining its version of the blockchain.SonicX created a system that is in-line with the foundational philosophy of Bitcoin and makes it a viable global payment system. Also, let’s not forget, smaller companies like SonicX not only enjoy the advantage of flying under the radar of the government, but also have open-source code they can rely on.Libra aims to target a wide variety of services that integrates with Facebook and as that, it is ideal for micro-payments. However, it is pegged to fiat reserves so it’s a stable-coin, that will start off as highly centralized and eventually move over to a DPoS (Delegated Proof-of-Stake) system.The SOX tokens value is, on the other hand, determined by the free market and not pegged to fiat reserves. Although that can mean more volatility, the case for SOX over Libra is in value against fiat.SonicX is also great for e-gaming and cross-border payments. While specific to this market, it only means that it has a strong use case for it. Even though Libra appears more viable for transferring value over Facebook’s ecosystem, not everyone may want to use it. What if users do not want to use their Facebook account for making cross-border payments? In that case, their option is to use a permission-less and trust-less system like SonicX.SonicX: New Blockchain Platform as a Competition to Libra?

Verify a Product’s Origin within 5 Seconds with the Blockchain Application for Supply Chain by LINA NETWORK

On June 12, as dawn broke in Bangkok, PROPAK ASIA 2019 was commenced. “We highly recognize the potential of LINA NETWORK’s solution for Supply Chain in the supervision and tracing of agricultural products,” commented the Chairman of AIM Thai Intertrade. PROPAK ASIA 2019 in Thailand is one of Asia’s largest technology exhibitions, attracting 50,000 visitors […] The post Verify a Product’s Origin within 5 Seconds with the Blockchain Application for Supply Chain by LINA NETWORK appeared first on CCN Markets

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.