What is Bitcoin Mining?
- What is Bitcoin mining
- How does Bitcoin Mining work
- What is Cloud Mining & It’s advantages
- Remote Hosted Mining VS Cloud Based Mining
- How to get involved and start mining cryptocurrencies such as:
- Litecoin and many more cryptocurrencies.
Let’s get started…
– Have you ever wondered where do bitcoins come from?
We know that with paper money, a government decides when to print and distribute money, but Bitcoin doesn’t have a central government.
With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange.
This provides a smart way to issue the currency and also creates an incentive for more people to mine.
– What is Bitcoin mining?
Mining is the process of spending computing power to process transactions, secure the network, and keep everyone in the system synchronized together.
It can be perceived like the Bitcoin data center except that it has been designed to be fully decentralized with miners operating in all countries and no individual having control over the network.
This process is referred to as “mining” as an analogy to gold mining because it is also a temporary mechanism used to issue new bitcoins.
Unlike gold mining, however, Bitcoin mining provides a reward in exchange for useful services required to operate a secure payment network.
Mining will still be required after the last bitcoin is issued.
What is Bitcoin Mining? (Video)
What Is Cloud Mining?
Cloud (or remote) mining – is the process of using hardware power to mine cryptocurrency (such as Bitcoin, Ethereum or Litecoin) remotely.
This mining model came to existence due to the fact that the increasing difficulty of mining has made it unprofitable for mining enthusiasts to mine Bitcoins at home.
Cloud Mining gives people a unique opportunity to begin mining cryptocurrency without the need for a large initial investment in hardware or technical knowledge.
Despite the simplicity of the cloud mining model, it is worth elaborating on a few details, specifically, it’s important to highlight that…
Remote Mining comes in two forms:
1. Hosted or Cloud Based Mining.
- Remote Hosted Mining
The first form of remote mining is Remote Hosting. This model suits users with a High-Level Mining Experience and know-how and who require a high degree of control over their mining hardware.
Under this model, the mining hardware is hosted in a remote data centre and the user assumes full control over the setup and configuration of the mining hardware.
Under this model, the miner pays a fee to the hosting company that would cover maintenance and electricity costs.
This helps the miner handle the risks associated with maintenance of the kit as well as any risks with the shipment of the hardware.
On the other hand, it presents the miner with risk on the initial hardware investment and requires much more time and technical knowledge to implement successfully.
It can, therefore, be summarised that the…
Benefits of Remote Hosted Mining are:
- Tight control over the mining process
- Maintenance support and
- Subsequent ownership of the hardware.
The Big Drawbacks are:
- Risks associated with the procurement of expensive hardware and
- The very high cost of entry, both in terms of investment and technical experience.
2. Cloud Mining.
The Cloud Mining Service Provider takes on configuring the hardware, maintaining uptime and selecting the most efficient and reliable pools.
The Cloud Mining option provides a range of Benefits:
- Instant connection (meaning no hardware shipment wait times and delivery risks).
- Fixed maintenance and electricity fees.
- No nuisances associated with mining at home such as noise, heat or space.
- The cost of entry and subsequent risk is far lower than in comparison with the remotely hosted model.
- Another key point is that this model of cloud mining requires no technical experience.
Obviously, it’s very important that miners understand the mining process, however, this model doesn’t require hardware expertise or significant configuration / implementation cost.
Since customers can purchase any amount of mining power they wish, this means that the level of investment will depend only on the miners’ ambition.
This also means that the cost of entry and subsequent risk is far lower than in comparison with the remotely hosted model.
The Cloud Mining Service Providers below are happy to be offering their new cloud mining services range.
Their Cloud Mining Services guarantee:
- An instant connection
- Around-the-clock access and monitoring
- An easy-to-use management interface
- 24/7 uptime as well as Daily Payouts.
Below is a list of some of the best Cloud Mining Service Providers :
Cloud mining is greatly suited for novice miners who would like to try out mining and earning cryptocurrency as well as seasoned miners who don’t want the hassle or risks of hosted or home-based mining.
How to get involved and start mining cryptocurrencies such as:
and many other cryptocurrencies
Simply buy a mining pool contract from one of the Cloud Mining Service Providers such as:
We hope this was informative and helpful.
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