Many people want to get involved with Bitcoin mining as a way to increase their holdings of Bitcoins, or as a way to start a stash of Bitcoins. The problem is that Bitcoin mining hardware is expensive to buy and operate, and requires at least some technical know how to set-up and maintain. Fortunately there’s still a way to get involved with Bitcoin mining, while avoiding the high cost of hardware and electricity, and the technical knowledge requirements. It’s called Bitcoin cloud mining.
What is Bitcoin Cloud Mining?
Bitcoin cloud mining (also known as cloud hashing) is the purchase of the mining capacity of dedicated mining servers, located in secure data centers.
Bitcoin cloud mining started several years ago and has grown in popularity and usage, with millions of customers now purchasing their hashing power from companies that offer these services. Two of the oldest and most popular cloud mining companies are Genesis Mining and Hashflare.
By purchasing mining capacity from these companies you can enjoy the benefits of Bitcoin mining, without having to be troubled with purchasing and configuring hardware, paying for bandwidth and electricity, researching the right mining pool to join, or suffering from downtime if your mining servers go offline.
All of the hardware is owned by the cloud mining company, and they take care of hosting the servers, keeping them in a secure location, maintaining the servers, and ensuring that they stay online and in top operating condition. All you do is purchase the hashing power and collect your Bitcoin. (Note: Genesis and Hashflare also offer mining contracts for other popular cryptocurrencies such as Ethereum, Dash, Zcoin, Litecoin, and Monero)
Advantages to Bitcoin Cloud Mining
- No need to buy, install and maintain expensive mining hardware.
- No electricity or bandwidth costs.
- Avoids the noise pollution of constantly humming fans.
- No excess heat to deal with or ventilation problems with hot equipment.
- No worries about selling outdated hardware if Bitcoin mining become unprofitable, or hardware becomes outdated.
- No stress while waiting for preordered Bitcoin mining hardware that might not even be delivered on time with lead times of 8+ weeks.
Disadvantages to Bitcoin Cloud Mining
- Unverifiable or otherwise shady Bitcoin cloud mining operations are a possibility.
- If you enjoy building your own Bitcoin rigs it’s no fun to just buy the hashing power.
- Bitcoin cloud mining services have expenses, which means slightly lower profitability when compared with running your own mining rig.
- If the price of Bitcoin drops too low there may be a clause in your Bitcoin mining contract that allows the cloud mining company to cease payouts on the contracts.
- You don’t own the Bitcoin mining hardware.
- You have no control over the Bitcoin mining software.
Is Bitcoin Cloud Mining the Perfect Solution?
Buying and setting up your own Bitcoin mining hardware at home can be incredibly difficult for some people. Plus, it is time consuming and expensive. This led people on a search for a simpler and more cost effective solution. Cloud mining seems to be the perfect solution. There’s no need to buy hardware that could quickly become outdated, no need to setup and maintain that equipment, and no need to pay for the electricity and bandwidth required when mining Bitcoin. You simply purchase your mining power from a supplier, and you collect your Bitcoins without any of the hassle or expense.
Searching for a cloud mining solution these days can be overwhelming however. A Google search for cloud mining will bring up literally hundreds of millions of pages of results. You’ll be presented with dozens of companies offering what they say is the very best cloud mining opportunity in the world. But which ones can you trust?
You will still find negative reviews of these two cloud mining providers, but some negative reviews are inevitable when you’re dealing with millions of customers. Some are likely because of unrealistic expectations, some are simple misunderstandings, and some are probably even paid negative reviews meant to discredit the companies in an effort to steer people to other cloud mining providers.
You’ll also find many reviews claiming it isn’t possible to profit from cloud mining – and I would say this is true if the price of Bitcoin remains static. But if you believe the price of Bitcoin will continue to increase, and I firmly believe so, then it becomes extremely profitable in the long term to use a cloud mining service. Even if you’re mining at a small loss currently – with Bitcoin valued at $10,000 – imagine how much profit you’ll have in a year if Bitcoin doubles, triples, or rises by 1,000% (as it has in 2017). In short, mining is profitable in my opinion.
My Personal Opinion on Bitcoin Cloud Mining
I appreciate Bitcoin cloud mining so much I use it myself. While I do have the skills to set up a mining rig, I don’t want to spend over $1,000 to buy the ASIC server, nor do I really have the room in my current place to set it up. Plus there are kids who could mess with it, and the whole maintenance issue. So, I went the cloud mining route. I will say that cloud mining is break even at best – if Bitcoin doesn’t appreciate. Thankfully it has, and that has made cloud mining more than worthwhile for me.
If you’re interested in beginning cloud mining Bitcoin yourself I recommend you check out Genesis Mining (you’ll also receive a 3% discount on your order if you sign up through that link) or Hashflare. Be warned that they do run out of capacity for new contracts, and you may have to wait to get a contract for the coin you’re interested in, so if it’s available now, don’t hesitate.