There are many ways to mine bitcoin, one of the is called cloud mining.
As per the Bitcoin protocol, there can never be more than 21 million Bitcoins available to mine. Until that limit is reached, Bitcoin miners will be at it unearthing new Bitcoins. Mining is, in fact, their primary incentive for continually adding blocks to the blockchain.
What Is Cloud Mining?
As a wannabe Bitcoin miner, you may have heard of “cloud mining”. Simply put, it’s a way to mine Bitcoin without physically owning any hardware.
Instead, you can rent processing power from a remote data centre and they’ll take care of the maintenance for you. It’s like paying someone to do your laundry – except instead of clean clothes, you get freshly mined Bitcoin.
The process typically involves signing up for a mining contract, which will allow you to access a portion of the data centre’s processing power. From there, you can start mining Bitcoin, and the rewards will be credited to your account.
Cloud Mining Statistics
- In 2020, the cloud mining market was valued at $2.6 billion and is projected to reach $10.3 billion by 2025.
- As of 2021, the largest cloud mining provider is Genesis Mining, which controls around 26% of the total mining market share.
- The most popular cryptocurrencies for cloud mining are Bitcoin, Ethereum, and Litecoin.
- The average return on investment (ROI) for cloud mining contracts ranges from 6-18 months, depending on the cryptocurrency and the provider.
- The most common types of cloud mining contracts are for one-year periods, but some providers offer shorter or longer terms.
Advantanges of Cloud Mining
Cloud mining can be an attractive option for those who want to get into Bitcoin mining without the hassle of setting up and maintaining their own mining rigs.
It’s like outsourcing the hard work to someone else – just make sure you’re dealing with a reputable cloud mining provider. There are a lot of “cloudy” characters out there, and you don’t want to get scammed out of your hard-earned crypto.
Disadvantanges of Cloud Mining
That being said, cloud mining isn’t without its drawbacks. For one, it can be less profitable than running your own mining rigs.
You’ll typically pay a premium for the convenience of cloud mining, and that can eat into your profits. Additionally, you’ll have less control over the mining process, which can be a source of frustration for those who like to tinker with their hardware.
Nodes refer to immensely powerful computers that keep the Bitcoin software on wheels simply by getting involved in the distribution of information.
Ironically, it is possible for these nodes to be run by just about anyone. A node will share the information of a Bitcoin transaction to other nodes familiar to it who will, in turn, share the information the same way. As you can imagine, the news of a single Bitcoin transaction gets disseminated quite swiftly.
There are also mining nodes which assemble any outstanding transactions into blocks and contribute them to the blockchain. They do this by solving a complex mathematical problem to which the answer is known as a “nonce”.
This could be any integer between 0 and 4,294,967,296. Indeed, it is a hard puzzle to solve. But the reward for doing so will be a new Bitcoin.
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How to Mine Bitcoin in the UK
If you want to get started with bitcoin mining you have two options:
Before you commence mining for Bitcoin, you must first obtain the relevant hardware. Today, that consists of Custom Bitcoin ASIC chips which are 100 times more capable than older devices and will consume a lot less electricity.
2. Cloud mining
An alternative to mining Bitcoin yourself is to invest in Bitcoin cloud mining contracts.
While this method is a lot simpler, it poses a significantly higher risk as it does not afford you any control over the hardware. Bitcoin cloud mining does have its own history of scams.
However, if you are still keen on trying it, here are some of the most prominent Bitcoin mining companies to consider.
At Hashflare, you can opt for SHA-256 mining contracts as well as SHA-256 coins (which are more profitable). The minimal amount you can buy is 10 GH/s.
Genesis is the biggest Bitcoin cloud mining company in the world. It offers users a choice of three Bitcoin cloud mining plans which are all well-priced. You can also go opt for a Zcash mining contract if you prefer.
Hashnest is a mining company run by Bitmain, which is also the producer of the Antminer Bitcoin miners. At present, Hashnest offers over 600 Antminer S7s for rent. You can check out the latest prices and vacancies offered on the official Hashnest website.
Minex is known to be an inventive assembler of blockchain schemes that are offered as an economic recreation game. Clients are able to buy Cloudpacks with which they can build a catalogue of pre-determined groups of cloud mining casinos, farms, and lotteries.
Regardless of whether you choose to generate Bitcoin using mining hardware or through a company, always stay updated on the latest price shifts and other news regarding Bitcoin. Also, never invest more than you are prepared to lose.
Cloud mining can be a useful way to get started with Bitcoin mining, but it’s important to do your due diligence and find a reputable provider. It may not be as profitable as running your own hardware, but it can be a good option for those who want to dip their toes into the mining waters without getting their feet wet.