Cloud mining or cloud mining is a process of extracting digital currencies such as bitcoin and lightweight, which is remotely controlled and usually provided by cloud providers. This manning (extraction) method allows miners (those who participate in the extraction) to be able to extract the hardware without having to manage and maintain the hardware. Because these services are provided by cloud extraction companies, it is usually accompanied by a fee and fee charged by the service provider. This fee and fee depends on the type of service and the rules of the provider company.
Types of Cloud Mining or Cloud Extraction:
Cloud extraction comes in two types, which can be rented physical extractors or private virtual servers and installed by extracting software on the device. Instead of renting a dedicated server, some companies host their own servers and sell hash rates (hash rates) so that users can choose how much hassle they want and can also specify how long their contract is. Be it. Other features of these services include the possibility of assigning all or part of a hash record to existing users. For example, a user buys 4 Gh / s and after some time decides to lease or rent all or, for example, 7 Gh / s, this is possible by some provider companies.
Advantages:
The following benefits can be a reason for you to want Bitcoin cloud mining:
- A quieter, cooler home without the need for loud noise fans (for cooling equipment)
- No extra charge for electricity.
- When mining is no longer profitable for you, there is no more equipment to sell.
- You will not have any oscillating problems with equipment that gets hot during work.
- You won't have to worry about hardware failures.
- Practical Installation: You don't need to build software and software settings
- You will have no problem getting suppliers of mining equipment.
Disadvantages:
The following reasons make you not want to use this method:
- Its less fun (if you're a computer worm who loves to build systems!)
- Less profit - Operators finally have to pay for themselves.
- Lack of control and flexibility at work
Bitcoin Cloud Extraction Types:
In total, there are three types of remote mining at present:
Hosted Mining
Hire an extraction machine hosted by the host.
Extracting Virtual Hosted Mining
Create a virtual private server (for general) and install your own extraction software.
Rental Hashing power
Rent some Power Hashing (you are given the power of Hashing) without having to devote a virtual or physical computer to it. (By far this is the most popular cloud extraction method)
Extract Hosting
Bitcoin ASIC Mining
Customers pay monthly rentals for a wide range of ASIC bitcoin mining systems and can rent a physical machine dedicated solely to this task.
Many builders work with their own hosting extraction facilities. knCMiner has recently announced that it is developing such a program in Sweden that uses renewable energy.
Extract virtual hosting:
Amazon EC2 platform
Amazon's Elastic Cloud Computing platform was previously a popular way of extracting cryptocurrencies such as Light Quinn, Fisher Quinn, and Dojquin. Amazon receives the extra charges either in the form of a prepaid one-year service or in the form of a 'pay-per-use' model.
However, there is a potentially more cost-effective model called "spot instance" where users can bid on computational time at a price they are willing to pay. When Amazon has little power, it will give computing power to those who offer more money. However, if you offer very little money, your extraction system may not be online at all. In addition, you may select samples in geographic areas that may affect the price.
The best type of EC2 virtual machine to extract are those that have virtual graphics cards. But it is more difficult to access than this.
Digital Ocean
This VPS service provides a very simple 'pay-per-use' service that became popular during the early years. However, the simplest schemes only offer poor computing power. For example, a $ 2 a month tariff only has one core and gives one-digit kilos per second for cryptocurrencies. However it should be noted that this can be effective for new money.
In principle, extraction can be done with any type of virtual host service. However, one needs to carefully consider the computational ability of each proposition. It is theoretically possible to install extraction software on a web service, but it probably won't be profitable.
There are issues with hacker-controlled botnets that have been able to direct a great deal of computing power into mining and developing various types of malware that infiltrate computers.
Rental Power Hashing
The following options are available for bitcoin cloud extraction:
Cloud Hashing
With this service, customers can determine the amount of hashing power they want with a one-year contract. Available in 1 Gh / s or 1 Gh / s contracts.
Hash Rack
Customers can make a separate payment for an indefinite amount of time (basically until the hardware crashes). A percentage can be invested to increase hashing power, and users can move different hash packages between their extractors.
E-Pickaxe
Offers one-year or unlimited contracts that are received and paid for by Bitcoin. The value of GH per contract is not constant because, as the company puts it: <As we add more hardware, your contract will have access to them, meaning as we grow and invest in hardware, you will The contract will benefit you.>
Bit-Miner
Provides mass extraction, a competitive price per GH / sec, and rental subscriptions. There are multiple assets available for each offer, for example Ant Miner rig (6 * 180 GH / sec) shared between 10,000 people at a price of $ 4.99 per subscription.
Cex.io
Unlike some other services, customers can both export GH / sec and extract it using Cex.io. You can choose whether you want to make a profit on cloud mining or trade based on the GH / sec price change. Even if you have a sales order for GH / sec, it will continue to cloud mining until it is sold. Profits are distributed using the <Pay Per Last Subscription> pattern and all hash rates are guaranteed.
Nimbus Mining
It offers 6-month contracts with various hash power and uses off-the-shelf hardware from multiple manufacturers.
Bit of Glory
The company offers 2-month contracts with 1 GH / sec, 1 GH / sec and 1 Th / sec.
eBay contracts
For those who like to have fun using mining contracts. Many users are now offering 3m extraction contracts at a cost of £ 5. These contracts are often executable with a USB Block Erupter extractor and, however, the hashing power will be limited. However, there is no obstacle to providing a more robust extraction in the future.
How to determine profitability
However, the web services provided are designed to work with your hardware specifications, not cloud extraction features.
However, you can still use this calculator to estimate costs. Profit calculators (for example Genesis Block) often ask about your electricity costs and sometimes your initial investment in hardware. You will be asked about the upfront costs and the amount of investment.
So, since your provider pays your electricity bills, you can enter the monthly extraction bill at a cost where the extraction takes place.
However, the conversion process is not quite easy. In the case of hardware extractors, it can multiply the current monthly cost by your own electricity cost (for example, kWh) per unit of consumption and again by the conversion factor of 4.1 (seconds / month ratio per joule to energy). Multiply (kWh).
But for cloud extraction calculators, you need to do the opposite, because the provider gives you a monthly fee. Therefore, you need to calculate the equivalent cost per kWh in the extraction calculator. This is done by dividing (but not multiplying) the monthly cost by the conversion factor above mentioned above.
For example, suppose you want to enter these numbers in the TradeBlock website extraction calculator, you have to enter a zero for hardware cost, shipping cost and other extras and enter a 2 for energy consumption and then a cost Imports equivalent electricity against electricity costs. Note that you can reconcile energy consumption and cost and there will be no difference in the calculation.
This type of computing is not applicable to all cloud mining businesses, and some have completely different cost structures. For example the calculations mentioned above are not suitable for Hash Rack or Cex.io.
Risk versus reward
There is a risk in any type of digital currency extraction, but it can also be profitable if you make the right choices. In this article, we've told you some tips on how you can decide which one to choose.
In your trial calculator, you will probably find that some cloud mining services are profitable for a few months, but you may lose after four or six months with increasing bitcoin difficulty levels.
One possible solution to this situation is to re-invest in competitive hashing rates, but that depends heavily on your guess.
how....?