A Blog Post About Cloud Mining – a good hobby to get into.
The Basics of Digital Currency
The price of Bitcoin topped to $19,000 in December 2017, and big banks and investment groups have acknowledged that will adapt to the presence of cryptocurrency. If you are thinking where to invest your money, it could be a smart choice to invest it in Digital Currency. Bitcoin has a big chance to make a profitable long-term investment. The following blog is my current opinion as we go into 2018, I might be wrong so please use your own good judgment.
Bitcoin Mining is one way to earn money and at the moment it’s really profitable. Bitcoin cryptocurrency was introduced in 2013. Mining of Bitcoin on the Cloud can be done at home and it’s super easy.
There’s two option to mine Bitcoins: either buy a machine to run mining algorithms on or rent a machine running those algorithms from a professionally run datacenter. This style is called Cloud Mining. Managing a Cloud Mining plan takes little effort.
Its Easy To Get Started
Cloud Mining Bitcoin does not have such a high barrier of entry to get into as mining yourself, as you can start with small contracts at a fraction of what it would cost to buy dedicated hardware on specialist chipsets running specialized algorithms and run them well the way they do it at the data centers.
You also save on the technical details of getting into a mining pool and running the right algorithms, understanding the blockchain, and so on. Another bonus with Cloud Mining is its easy to mine different Alt-coins like Ethereum. If you follow a long-investor style it will be more rewarding cloud mining bitcoin than buying it at an exchange.
Cloud Mining is the process of bitcoin mining utilizing a remote, professionally run and managed data center with shared processing power ‘tenanted’ to those who have contracts to run them.
Being managed, this type of cloud mining enables users to mine bitcoins or alternative cryptocurrencies without managing the hardware.
Cloud Providers are allowing people to mine Bitcoin without the need for costly expenses like electricity bill and software maintenance nor the knowledge of how to mine Bitcoin. All you need to do is purchase the amount of hash power from a Cloud Provider you like and they will do the mining for you.
Cloud Mining is a really good idea to help people to earn money in the easiest way but of course, investors need be vigilant in choosing mining company as a lot of fake website in mining industries, and rates and contracts even between the good ones vary in value.
In Cloud Mining, you can earn money Mining Bitcoin and other Cryptocurrencies you fancy with less investment or effort from managing hardware or software as they make it all for you and what you need to do is to wait and monitor your earnings in a daily basis.
One goal of an investor is to minimize fees and taxes. This applies to Cloud Mining investments, too, so you should watch out for those fees and include how to minimize them in your plan.
For example, HashFlare.io charge an MEF, or Maintenance and Electricity Fees.
The MEF of SHA-256 is 0.0035 $ / 10 GH/s / 24h and for scrypt 0.005 $ / 1 MH/s / 24h/
The other Mining Contracts are free of MEF charge but expect the high rate per hashrate power.
How much money should I invest in mining Bitcoin?
In some mining company, they offer 1-year contract or 2-year contract with price packages. Hashflare offers a minimum amount of $2.20 per 10/GHs valid for 1 year. You can also increase your Hashrate by buying more hash rate power as the more hash rate you have the more bitcoin you will mine and it will give you more earnings.
If you have a green thumb and have the patience for your plant’s yields, you will like cloud mining.
How much money could I earn in mining Bitcoin?
Earning in cloud mining will vary on how much Hashrate you have.
For an example, we will demonstrate using HashFlare.io
Lets running the following scenario with rates of Contracts and Exchange rate of Bitcoin at the time of writing this post, December 30th, 2017:
You buy 5Th/s of Bitcoin mining power (SHA-256) it will cost you $1,100 or the equivalent in Bitcoins. I will use a Bitcoin mining calculator and try to predict my profits with 5Th/s of mining power I don’t have any other expenses since I’m using cloud mining.I will get the following results:
|Duration||Estimated earnings in BTC||Estimated Profit in USD|
|Note: These calculations are at the time of writing this post.
Please recalculate the scenario at the time of reading this post.
|1 Day||Ƀ 0.0006712||$9.22|
|1 Week||Ƀ 0.004699||$ 64.52|
|1 Month||Ƀ 0.02014||$ 276.50|
|1 Year||Ƀ 0.2450||$ 3,364.07|
After one month I make around $276.50 in Bitcoins Ƀ 0.02014, meaning after 1 year I will make around Ƀ0.2450($3,364.07) Bitcoins. So profitable, and will return your investment in 3 months time
HashFlare.io charge a Maintenance and Electricity Fee so if we calculate the fees base on our investment 0.0035USD per 10GH/s per 24 hours = $1.75/day (since I’m using 5Th/s) and for 1 month it will cost for a total of $52.50.You can less this $52.50 MEF charge for monthly income which is $276.50 so, therefore your net earning is $224.50.
It will take 5 months to return your investment and you have 7 months which you can receive purely profit. If the price of the bitcoin will keep increasing, you can even get the return closer to less than 3 to 4 months.
Ok, I have given a simplistic model of cloud mining an have not talked about the increase of mining difficulty over time nor did we typical contract terms. Look into these. And shop around. I really like HashFlare.io, I also use Genesis Mining and enjoy their cloud mining service too. I liked HashFlare.io better as you can start and grow on a smaller scale and for someone like me, that is good. However, it is also true that their data centers and rack space for certain miners fill up and sell out…so get a contract your happy with and can afford while they can offer them, on good terms, that is what I have done.
All you need to do is purchase the amount of hash power from a Cloud Provider you like and they will do the mining for you.
Start Mining Bitcoin Today!
If you are a beginner or feel you’re a latecomer as an investor, that’s fine as you don’t miss the opportunity to earn money with Cloud Mining Cryptocurrency. You can start small and its still profitable. In terms of Cryptocurrency adoption, I remember a decade ago, People initially that resisted using Facebook and around a year or so later they were no longer bitter and happy they signed up. I sense a similar pattern with peoples personal adoption to new cryptocurrency ‘times’ around wise but yet still resisting friends today. You can see bloggers screencast from 2010 mining on HashFlair.io and the daily yealds we so much higher back then. I get jealious every time I watch those old screencasts, but it’s not to late and I am mining what I can afford to on HashFlare.io and Genesis Mining now.
With the numbers I have and if Bitcoin holds its value – Things look really good.
If you have a green thumb and have the patience for your plant’s yields, you will like cloud mining. As long as you have self-control and you’re not sacrificing something too important to start with, Cloud Mining seems lower risk, a pretty easy barrier to entry and rewarding. Cloud Mining is Rewarding even if the bitcoin value does not go up further or needing it planning on it rising. Bitcoin would have to crash pretty badly, and I mean really low for you to lose your ROI.