What is Cloud mining

Cloud mining or cloud hashing allows users to purchase hardware mining capacity in remote data centers for an agreed pre-set time. Actually, it is a rental or lease of computing capacity that avoids the acquisition of mining hardware and software, power consumption and bandwidth, among other requirements of owning a mining center.

The advantages of this mining scheme are related to not having to deal with the inconveniences that mining equipment generates: excessive heat and noise, installation of ventilation systems, power consumption, purchase and repair of equipment, etc..

The main disadvantages lie in the high probabilities of fraud to not be able to verify the existence or operation of the data center and lower profitability for the cost of the mining service, in addition, mining contracts in the cloud provide for the cessation of operations or payments if the price of the cryptomontage is too low to cover operating costs, among others.

Currently, there are companies that offer cloud mining services for several of the best known cryptomonads: Bitcoin, Litecoin, Dash and Ethereum, among others.

CEXio, the first cloud mining company, was established in October 2013. Today there are many others, the most famous being Genesis Mining.

Due to the high degree of trust that must exist between those who contract the service and those who offer it, this system has been lent to perform multiple scams over the years, so you must be cautious when investing in mining in the cloud.

Leave a Comment

Solve : *
36 ⁄ 18 =


Cryptocurrency and mining blog for beginners