Mining for bitcoin will allow the creation of new bitcoins. So what exactly is bitcoin mining?
Understand bitcoin mining
Bitcoin mining is the process by which transactions are verified and added to the public ledger known as blockchain. New bitcoins are release like this. In the mining process, it involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle.
The participant who first solves the puzzle gets to place the next block on the blockchain to claim the rewards. The rewards incentivize mining. Transaction fees are associated with the transactions compiled in the block as well as for the newly released bitcoin. So that is what attracts people to bitcoin mining. In fact, anyone with access to the internet and with suitable hardware can participate in mining.
Some disadvantages of bitcoin mining
Bitcoin mining generally takes a high consumption of electricity and is noisy when in operation. The “miners” will use powerful computing chips to run the custom software day and night. Bitcoin operate differently from traditional currencies such that as it operates on the basis of public ledger system. Transactions to be confirmed to avoid the same Bitcoin from being spent twice. For example — a number of Bitcoin nodes, operated by miners around the world need to give it their seal of approval. This is how it works.
Despite a lot of mining work on bitcoins, there are still many more to make. Maximum number of bitcoins to make is 21 millions. It is a computationally intense process that is further hampered by deliberate increases in difficulty when increasing number of miners attempt to create the next block in the chain. That is why people join pools. It is also why only the most powerful of application specific integrated circuit (ASIC) mining hardware is effective at mining Bitcoins today.
They will continue to mine bitcoin until 21 millions had been mined. It is hard for individual person to take part of ming due to expensive hardware, electricity…etc. That is why now there is cloud mining. The more miners join in, the more difficult to solve the computing process. At the rate with which Bitcoin mining difficulty is increasing and with mining hardware is progressing, and rewards are decreasing. The projections for the final Bitcoins being mined edge into the 22nd century.
Notable bitcoin mining company are Bitfury, Slush…etc
What is cloud mining
**Cloud mining is the process of buying CPU power from dedicated data centers who use their own equipment to mine cryptocurrencies such as bitcoin and other cryptocurrencies on your behalf. Main advantage of this approach is that you don’t need to have in-depth knowledge of mining hardware. No need to buy expensive and hard-to-obtain devices. Renting ‘hash power’ (usually measured in Gigahertz per second or GH/s) also means you don’t have to deal with the heat and noise that comes with a DIY mining project.
A lot of these companies either source their own equipment or build it cheaply and have placed their data centers in countries like Iceland, Russia and China where electricity is cheap. This can pass the savings on to you.
We will explore five of the most reputable cloud mining companies. As there are many scam outfits posing as miners, where possible we’ve chosen cloud miners who can prove that their data centers exist or are endorse by a reputable firm. Please do your own research before investing at your own risk because this is your own money…
Examples of cloud mining
Looking for a professional cloud mining service with great pricing and great attitude? HashFlare mining company will be one of the best choice for you. So lets us check what is so good…
The company started about 4 years ago and is currently one of the oldest and most reputable cloud mining companies out there. It’s not just about money but spreading the cryptocurrency topic through the masses. While these people have already understood that cryptocurrency is the future of all banking system and globalization in general, you should not miss the chance to become a part of this great change.
For inexperienced people, it has the chance for them to become a part of the cryptocurrency world. HashFlare has lowest entry price for the cloud mining service. It can start with even $2.00 in your pocket.
Just choose the contract with the cryptocurrency you want to mine and register your profile. HashFlare interface is very user-friendly. It works with popular algorithms and cryptocurrencies like bitcoin as well as Cash, Litecoin, Ethereum and Dash.
It’s works is very simple and is connect to every contract that the company offers. Litecoins and Bitcoins pools have special maintenance fees charged. It is due to their high electricity consuming. HashFlare is legitimate with fair terms and condition. Do sign ups now as it is so cheap!
The review on hashing24 helps people to understand whether it is a trustful service or scam. The platform exists since 2012, but they provide clue services around a year. Taking into account the pricing on the revenue, it doesn’t look like a scam. On the other hand, it is reasonable to check every checkpoint of precautionary measures to make sure the system is legit.
For clients who’re not crypto experts, cloud mining will be for them. You choose a plan, organize wallet maintenance, pay one time deposit and receive your tree year’s contract. For new clients, it is reasonable to review hashing24 promo code which grants a discount. Those clients who are not planning to have a long-term bitcoin investment may consider crypto trading. This requires more risks but can bring fast income. Trading requires more research not to lose money or a consultation with a reliable expert.
It is approve that the service is user-friendly and supported by a team of highly qualified support representatives. They made it a reliable service that offers a possibility of mining without buying the equipment. The company provides modern and powerful equipment to those who are using it for mining bitcoins.
To know about Eobot, it is a cloud mining service in operation since the year 2013. The company is based in California, USA. It states that cloud mining is consider as a fun, recreational activity and not a source of income or investment”. It does make reasonable promises and does not try to make you believe you will ROI in no time.
There are multiple options available: The standard cloud mining aside, it also offers cloud folding services. Also the ability to rent hashrate and point it to your on pool, or mine with your hardware in their mining pools. They even offer their own software for mining.
A built in faucet with small daily payouts built-in can help you to start even without investing your own money or coins in the service. Plus some awards to stimulate you to return often such as a daily DOGE reward just for logging in. You can choose to mine Bitcoin as well as Litecoin, BlackCoin, Namecoin, Dogecoin, Dash, Reddcoin, BitShares, CureCoin, StorjcoinX, Monero and many others. You do not mine the additional coins directly but probably your mined profit is exchanged for the crypto currency you choose.
Currently, the service has almost 230 thousand users registered, but apparently not that much of them actually have purchased a lot of hashrate for cloud mining. There are two options available in the form of 5 year contracts – GHS 1.0 sold at $0.20 USD per GHS with a maintenance fee of $0.00232/GHS/Day and GHS 2.0 available at a price of $0.50 USD with a lower maintanance fee of $0.00117/GHS/Day.
The first option offers cheaper price for the hashrate. But the profitability is much lower with the maintenance fee resulting in about 95% of what you mine. The GHS 2.0 contracts on the other hand are pricier, but with lower maintenance fee (apparently using AntMiner S5 as mining hardware) that is currently about 49% of what you mine.
The mining break even time in months at the moment is almost 50 months for the GHS 1.0 and about 12 months for the GHS 2.0 cloud mining contracts according to the service stats. They sell Scrypt cloud mining contracts at some point. But these are no longer available.
You can purchase cloud mining hashrate or use the service as a form of crypto currency exchange. You need to be aware there is a 5% fee charge when using cryptocurrencies to buy hashrate or to exchange between them. Also, there is support for purchasing hashrate via PayPal.
There is a rule that no withdraws can be made for 180 days after every PayPal purchase as apparently set as a precaution to avoid fraud. But not very convenient for honest miners. We have purchased about 100 GHS of GHS 2.0 Bitcoin cloud mining hashrate a few days ago to check out the service and so far everything seems to run smoothly and problem free. Interestingly enough with just about 100 GHS of hashrate the website ranks us in the top 150 users in terms of purchased hashrate from the 230K in total.
Eobot is in the cloud mining business since 2013 so it is definitely a good sign in our book. We can also see the pictures of their mining farms thats why we can eliminate the lack of profit-generation capacity like ponzi. We also have a generous user-feedback, confirming payouts.
Hashnest is a cloud mining service that has been around for many years. It has affordable contract and is transparent to its customers. Hashnest and Bitmain had something in common. Hashnest is from Bitmain. It is one of the world top provider of mining equipment. It currently has very good reputation in bitcoin mining, including unique mining algorithms and high-tech BitMain technology and equipment. Such as the latest currently employed BitMain Antminer S9 with ASIC chip based on the 16nm process node, which delivers 0.098 J/GHs.Apart from reliability, exquisite equipment, and the promise of high ROI.
Hashnest also offers great security because it employs the latest encryption technology and offers high-level site security with SSL and data protection with 2-factor authentication.
Hashnest is a company with various mining farms in china and iceland, mainly due to its cool environmental temperature and affordable electricity. You need to have an email and password to provide for registration. You also need a hashnest wallet so that you can mine and transfer upon. It only takes a few minutes to do this.
Then you will choose the contract that best suit your needs and budget. There are standard or PACMiC contracts to choose from. After selection, you pay for the contract. When your order is send to the data mining center, this is when the actual bitcoin mining begins. Miners will be direct to Antpool which is a Bitmain corporation. You can also mine Litecoin beside Bitcoin.
You can withdraw your blocks the same day they are mine. This is for payout. Hashnest currently offers three payout options. You can choose to receive daily automatic payments or opt for the Profit Accumulation or the Reinvest option. Hashnest is very easy to use and allows its users to view detailed information about every block mined. Many experienced users welcome this type of transparency.
This company is found in 2013. It is one of the oldest Bitcoin companies around in the world. It is one of the most well known companies in cloud mining. They have facility in iceland. You can mine Bitcoin, Ethereum, Dash, Monero, Litecoin and Zcash. You pay someone to lease their hardware and keep the profits to yourself in this mining. The company that rents out the miners takes care of the maintenance and all of the hassle of setting them up. You need to pay a fee for their service.
The Bitcoin mining difficulty has been more than doubling itself every year for the past 3 years or so. Between 2016 and 2017 it tripled. This means that if you buy a certain package expecting a certain reward, in a year or so you’ll probably be getting anywhere between 33%-50% of that reward. Genesis mining seems legit but whether it is a good investment is up to your thinking. Maybe it is better to buy bitcoins instead of using it for cloud mining contracts.
Register with Genesis Mining is very easy:
- Create an account and choose which cryptocurrency you would like to earn
- Purchase the required Hashpower.
- Get your first payout the next day.
You may want to get start now as it is so easy to mine bitcoins with Genesis Mining.
**Ok, now we see if it is still profitable to do bitcoin mining in 2019. In order to be profitable with Bitcoin mining you need to invest heavily in equipment, cooling and storage. It’s not possible to mine profitably with a PC or a GPU at home, for your info. You can calculate your profitability using a Bitcoin mining calculator. More shall discuss soon later…
The things to know when buy bitcoin here
On major crypto mining challenges and how to overcome here