Cloud computing first came to the market around 2006. It was a revolution in the sector of real-time computation over the internet.
People could use enormous computational power anywhere in the world by paying a small fee without owning the hardware in person.
The mainframes somewhere in a remote location would do all work for you. It revolutionized the way people do computational work. In a cloud, you can run pretty much everything from software to a whole operating system.
Bitcoin came into existence in the year 2008. But it got popular around the year 2014.
Lately, competition in mining has gone up tremendously as the popularity of different cryptocurrencies went up. Miners used various techniques ( both hardware and software ) to increase their mining capability.
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How cloud mining came into the picture?
Many people are interested in mining cryptocurrencies but don’t want to go through the tedious process of setting up the hardware and software.
So, cloud mining is an escape route for them. It is a beautiful implementation to bridge the gap between mining and mining enthusiasts.
In cloud mining, people pay to borrow hashing power (capability to calculate hash per second ). They can utilize the hashing power to mine cryptocurrencies on their personal computer.
A user has to choose the hash rate which he/she wants to put into crypto mining. After paying the fee, a share will be allotted to the user, just like in the case of a mining pool. Now, he/she can mine cryptocurrencies!!
What are the advantages of Cloud Mining?
- There is no hassle of setting up mining equipment.
- The electricity cost is low.
- Anyone from anywhere in the world can use it.
- The monetary fee is low compared to the setting up mining rigs.
- They provide you with options to allot different hash rate for different cryptocurrencies.
What are the disadvantages of Cloud Mining?
- Hash rate you have chosen may not be suitable for the present difficulty level in mining.
- Internet connectivity plays an important role. With a poor internet connection, cloud mining will be difficult.
- Many cases of fraud and scam organizations have come up in recent years.
So, is cloud mining for you?
If you want to give crypto mining a try, then cloud mining is one way with minimum cost. If you think that you can get more hashing power at the same price as cloud mining then obviously, cloud mining is not for you. So it all comes down to market conditions and personal interests.
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- A Simple Guide to Mining Pools
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- Replace By Fee and Unconfirmed Transactions in Bitcoin
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