Bitcoin Cloud Mining Review
Cloud Mining means that you can buy or buy the equipment from a company that offers and supplies the equipment with electricity for you. For this, they take a fee from your mining reward and you get what remains paid to your default Bitcoin account. You can read more about what cloud mining is in our dedicated article on this area.
There are a few different names on Bitcoin cloud mining contracts that you should be aware of.
Bitcoin Lifetime cloud mining contract: Lifetime contracts does not exist anymore since no contract could run for a lifetime. They were supposed to run as long as the mining reward covered the maintenance fee.
Open-ended cloud mining contracts: Open-ended contracts with lifetime contracts and the definition were the same.
Fixed time cloud mining contract: This contract will run for a predetermined time, for example 1 year.
Maintenance fees included or excluded: Some contracts do include maintenance fee or some contracts exclude maintenance fee. Maintenance fee sometimes cover all the costs for running the equipment but sometimes it does not include electricity fee.
Electricity bill included or excluded: Some contracts do include the electricity cost and some exclude it.
There are companies that offer free Bitcoin cloud mining in different formats. Honeyminer and offer free software that you can use with my gaming computer or laptop. Genesis Mining offers a promo code. You can read more about free bitcoin cloud mining in our dedicated article for just free cloud mining.
It is very easy to figure out Bitcoin cloud mining profitability for the day. The difficult thing is, as for all investments, to calculate profitability in the future. What makes it extra difficult to calculate for just cloud mining is that hashrate and the price vary so much. However, Bitcoin is among those crawl currencies that vary at least as a percentage in the hash rate and in price because it is the largest in total hash rate and largest in total market value.
The algorithm used for mining BTC is called hashcash algorithm, enabled through Proof of Work (PoW). The said algorithm allows blocks to be awarded to blockchain participants as they solve difficult mathematical problems. Through work on these equations, less use equipment that would provide quick solutions and hashes a block.
These blocks are awarded by chance, with each party having a chance of being an award. What distinguishes miners from one another is thus hash power. The more power, the more chance to be awarded once block award time comes.
In order to determine the best cloud mining site, we must first decide what it is that decides which one is the best. We think that ROI and profitability are important and at the same time transparency from the company is important. Furthermore, we believe that communication, support, payments and dashboards are important.
We have invested in cloud mining for many years and the only companies we have experienced this with over time are Genesis Mining and Hashflare. In addition, Bitdeer has emerged as a realistic contender.
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