When it comes to Bitcoin, there is plenty of potential to make huge returns on investment. Read this article to learn how to cloud mine Bitcoin.
The value of a currency used to rely solely on physical mines. Men, women and even children would be sent down into the earth to find and retrieve valuable metals that would then support investments, trade, and the economy.
That changed with the creation of Bitcoin. Now, you can mine Bitcoin without having to crawl into the deep, dark, dank earth.
Bitcoin is a digital currency that does not fall under the control of any bank or the regulations of a particular currency. For this reason, Bitcoin can be used to make anonymous purchases.
Because of this, Bitcoin and other digital currencies are also known as cryptocurrencies.
Bitcoin was worth more than $1,000 at the start of 2017 and is predicted to rise to a value of $3,000 in 2017. The potential to triple in value can make Bitcoin an exciting investment opportunity.
There are several ways to invest in Bitcoin:
The good news is that you don’t need a lot of equipment. Unlike climbing into a physical mine where you need safety equipment, lighting equipment, and mining equipment, you just need a computer and local bitcoin wallets.
You probably keep your money, credit cards, and identification in a wallet that you can tote in your purse or pocket.
A Bitcoin wallet works just like a physical wallet, except that it’s digital. It will store your mined Bitcoins for you, as well as serve as your identity in the Bitcoin market.
Since Bitcoin does not involve sharing your personal information, your wallet number will identify you so that you can conduct transactions.
When it comes to mining Bitcoin, you can elect to purchase lots of equipment, driving up your initial cost, or you can go the cloud mining route.
Benefits of cloud mining Bitcoin include:
Think of if you were going to start a business. If someone said you had two options–to open a brick-and-mortar store or to open a digital store, which would you choose?
Financially, it might be more feasible and less risky to open a digital store. If that brings success, you might think of expanding to a physical location, but why deal with rent, landlords, utilities, and insurance just to get up and running?
Digital solutions streamline and save money, and the same goes for mining Bitcoin.
Like any type of investment, there are risks involved, even with Bitcoin mining. That said, we think the risks are less costly than opening a physical mine to search for gold or some other precious metal or gem.
Potential risks in cloud mining Bitcoin can include:
We don’t intend in this guide to convince you one way or the other; rather, our goal is to provide an understanding of what Bitcoins are and how to cloud mine Bitcoin so that you can make an informed decision.
Now that you know what Bitcoin is, and why you might want to cloud mine it, let’s get into the nitty gritty and explore what that entails.
If you’ve made it to this point in our guide, chances are you’re ready to start learning about how to start cloud mining Bitcoin.
The first thing you need to understand is that there are a few different types of ways to cloud mine, and part of your job is to decide which will work best for you.
Much of this decision comes down to how much money and time you’re willing to put in on the front side to get ready to cloud mine.
Have you ever run a website before? If so, you probably know a bit about hosting.
With a website, a host’s job is to give your site a place to exist on the internet and give people space to navigate that website.
In cloud mining, a host works much the same way. You would lease or buy digital mining equipment. Then, you would find a hosting provider.
The hosting provider gives your digital mine a place to exist.
Keep in mind that when you use hosted mining, you will have the following attributed costs:
A less expensive option than hosted mining might be virtual hosted mining because you are the one creating the server.
You are the hosting provider for yourself in this case.
You’ll also be installing your own mining software.
Let’s back up a minute. If you’ve never heard of “hashing power” before, that’s okay. Most who are new to Bitcoin and how to cloud mine Bitcoin initially find this concept tricky at first.
Imagine you find a message, only it’s written in code. You might need a cipher in order to decode it.
Hashing is like decoding a message with a cipher. It basically takes something that may seem random, like a number, and assigns a value to it, like a letter.
Suddenly that message is starting to make sense!
So how does hashing relate to how to cloud mine Bitcoin?
This method involves leasing power. It’s almost like leasing a car or a smartphone. By leasing as opposed to buying, you can potentially save money on your Bitcoin mining operation.
When you save money, the profit from your investment can be higher since you don’t have to offset so large a cost.
Remember we talked about Bitcoin mining being different from crawling into a tunnel and hammering at rocks all day?
Before you start investing in this practice, you might be curious how to cloud mine Bitcoin using computers.
Basically, the computer systems attempt to solve highly complex mathematical problems. Each problem the computer solves earns Bitcoin.
Doesn’t that sound simple?
Actually, it’s pretty complicated, but at least you don’t need to carry a pickaxe.
As we’ve said before, any investment comes with some risk. If you go a casino and gamble your money, a healthy and practical approach is the knowledge that you might lose money.
The difference between a casino and cloud mining Bitcoin is that in a casino, the house always wins. It’s possible to enjoy a successful investment from Bitcoin mining.
One man made over $190,000 mining cryptocurrency. Profiting from this investment is possible, which considering the small financial cost of cloud mining, can be a compelling reason to begin.
We’ve spent much of this guide talking to you about how to cloud mine Bitcoin as an investment. While you can exchange the currency after mining it to make a profitable investment, there are ways you can also spend Bitcoin.
Where and how you can spend it depends on where you are. In some places, you can use Bitcoin for digital purchases or even physical purchases. There are even some restaurants that accept Bitcoin.
That’s because the lack of regulation on this currency also means a lack of fees for businesses. If you make a purchase with your credit card, the business you’re buying from usually has to pay a fee, while with Bitcoin, they may not have to.
So you’ll have to check locally, but you might be surprised at where you can spend Bitcoin.
Do you have more questions about how to cloud mine Bitcoin? We’re happy to help you get started on your way to investing with Bitcoin, as well as keep you in the know with the latest Bitcoin news.
Bitcoin Cloud Mining is a different option of solo mining or using hardware. Without owning a hardware for mining, you can still mine by a way of cloud mining. It will mine particularly Bitcoins or different cryptocurrencies.
1. Hosted Mining – You need to put your machine for mining to a Pool, that has cooling mechanism, configuration process and electricity provider. Another way is to lease a machine for mining by yourself.
2. Buying Hashing Power – It is the most common process in Bitcoin cloud mining. You just have to purchase an amount of Hash Rate. That actually means, you have to own a virtual or physical computer (machine).
We will now compare the differences between the two types of Bitcoin Cloud Mining :
(Cons) Higher investment and monthly cost – Depending on the maintenance costs of energy used, you will be purchasing a Bitcoin mining machine.
Pros and Cons of Bitcoin Cloud Mining
(Pros) Cooler Location and Tranquil – No heat and noisy sounds.
(Pros) Less Electricity – Lowered your electricity expenses.
(Pros) No Maintenance for Devices Problem – No more configuration and selling of Bitcoin miners if not profitable.
(Pro) No Risk – There’s no more possibility on equipment anxiety.
(Cons) Risk of Scam – Bad luck might be on high levels the you can find fraud in Cloud Mining
(Cons) Price of Mining Operations – Hardware management is part of what you have to pay.
(Cons) Less Fun – Since you own it virtually, it’s lesser fun than you own it physically.
(Cons) Lack of Flexibility and Control – Hard to decide where to use the miner and sell the Bitcoin mining