Digital Wallet Blog’s About Bitcoin Cloud Mining
Properties of Bitcoin Cloud Mining
It was not a secret that one way to make money this last decade was through mining digital currency. What people didn’t see coming is exactly how much money in digital currency they could have made, and at what costs.
People now for years have been able to make money through mining Bitcoin and either using it as currency in digital transactions or exchanging it for a more tractable traditional currency. Other ways of investing in the cryptocurrency industry can be through purchasing digital cryptocurrency in a long-term investment strategy. Its easy to do this so this is what a lot of people do. Another way could be generating profits in the spread of cryptocurrencies volatile worth. That is trading on cryptocurrency value fluctuations similar to a day trader on the stock market. This is a little trickier as it involves knowing spreads between a buy and a sell as well as the fees involved in the transaction and having the capital to profit from the transaction and be willing to risk your capital in such voliltiliaty.
The risk for these investments over the day trading investment strategy is if or will the cryptocurrency keep its value or go down? Cryptocurrencies could go down past where the cost of the contract for mining the cryptocurrency does not exceed the yields worth. This is an investors risk factor, and Day traders do not really face this risk. At the moment, from my experience as a new and keen Cloud Mining customer myself, I have seen it brings a pretty good return on investment and I am willing to take those risks with a controlled amount of capital.
People now for years have been able to make money through mining Bitcoin and either using it as currency in digital transactions or exchanging it for a more tractable traditional currency.
Negatives of cloud mining are there is a high, or at least medium and semi-calculated risk factor involved with Cloud Mining, and there are some costs involved with Cloud Mining to get started (although I’ve seen it can pay for itself very quickly), Another negative is that there are some periods to wait before you can get your hands on your ROI. This can be shortened by investing more, so the big spenders don’t need to wait, but for the average investor, a waiting period is part of the cloud mining dynamics. Some examples come with experience, like not being able to use all wallet provider for cloud mining payouts or experience extra high transaction fees when not withdrawing for a while due to the number of line-items in the transaction as each daily payout appears as a line-item.
One big positive is there is not much effort involved, at least not for the tenant. Its a passive form of cryptocurrency income. I can take the negatives of risk, cost and time dynamics into account, however, in effort my friend, there is very little. For this venture, Cloud Mining, as a tenant, it is more a numbers and risk calculation game than any physical labor or work like setting up a running Rig. Work is for the teams at the Cloud Mining Provider’s Data Centers, that’s what they to do 😉 that’s partial of what your paying for when buying a Cloud Mining Contract – great!
In effort my friend, there is very little.
Implicitly effort involved would be the effort it took to cover your risks if they turned out to occur. Maybe I am being too optimistic here in saying ‘if risk calculations go well, and you make a profit, then you’ve actually lifted a whole bunch of effort from the future you, again with not much effort”. You may have to get to the gym instead.
Why mine bitcoin? They provide stable returns over time.
Buy what makes money? A simple rule of thumb concept ‘buy what will make money’ has been shared and publicized many times over. I often scoff when I hear it, thinking “easier said than done”, yet it seems with regards to Cloud Contracts for Cryptocurrency Mining Algorithms at today’s cost of contract ratio to the contracts mining yield’s worth, the simple rule ‘buy what makes money’ applies and returns true.
Mining Bitcoin is how Bitcoin is made available and released to the cryptocurrency ecosystem. Today Mining is done in Pools; networked mining hardware’s all mining the same algorithms pooling their mining power. Currently, on the eve of 2018, a lot of Bitcoin have been uncovered… And those bitcoins are being traded in the ecosystem, but mining still continues today, likened to a gold rush or a land grab for currency, you can use your investment capital to buy into what’s already been unmined or you can use it to mine Bitcoin.
At the time of writing this article with current contract prices, and current worth of major cryptocurrencies, it is not a bad idea for investors to turn to buying Cloud Mining Contracts to “mine” or unlock the Bitcoin portions the mining will return to them under the contract.
Dedicated Hardware, managed Firmware/Software, Mining Rigs in Data Centers.
Big Boys, Doing Big Things…
Looking into HashFlair.io further I found they are owned by Hashcoins and they are a huge outfit. As well as cryptocurrency mining, operations include the construction of permanent transaction processing centers and facilities, development of ASIC chips, crypto hardware and blockchain-based systems. You can see from their website that their data centers look modern and well maintained. To me, this is a good sign
I’ve not looked into the other uses of ASIC chipsets, but I do know that they are modern, new chipsets on computer architecture that is different to the motherboard and CPU we use or that may be used on a traditional Compute Cloud. ASICs are the best Chipset out there for the Job of running Cryptocurrency Mining Algorithms at high rates and efficiency. This is a good benefit, as these hosted Mining Rigs are mining at speeds far better than what early investors would mine at.
Timing now, and ASICs having the better processing power, and being relatively new is a good thing if you’re looking to buy a Mining Contract now vs before when they were not used or later when they have been used a lot and mining difficulty has increased.
Like I said, I’ve not looked into other uses of ASIC chipsets, but I have looked at the cost of ASIC mining rigs…. And, a-hem, you better believe in what you’re doing if you want to invest in hardware like that. At a couple of thousand dollars, a single Mining Rig seemed very expensive to me.
Owning a Mining Rig is Not Running A Mining Rig.
I know a lot of people, I hope not myself included, that would get a Mining Rig, only to have it sit somewhere not running because one couldn’t get over the complications of actually Running the Mining Rig processing cryptocurrency algorithms. If you’re familiar with conversion funnels: it would be horrible if this was a point of abandonment to your mining goal.
Earlier I mentioned Cloud Mining Is analogous to renting Hardware in a data center. What your getting is your contract being run on Modern ASIC Chips rented Hardware, Mounted on a Rack, and hosted in a professional run and secure Data Center. You don’t own the hardware and it’s completely multi-tenanted to the contracts its to run vs dedicated to anyone tenant/customer. You can’t go there, like a freezing co-location, that’s the ‘cloud’ part, as a tenant, it could be virtual in pixie land, but it’s not. Its real hardware in a professional datacenter Running Algorithm Clock Cycles Non-Stop. This is important because as mentioned it is one thing to OWN expensive Modern Dedicated Hardware, good for Mining, and it’s another thing to RUN them.
At HashFlair.io The Hardware is modern and Software is kept Running. The Mining Rigs and Data Center they are in are maintained from a DevOps/IT/Electronic/Network engineer standpoint. Moreover, Rigs, both software and hardware component-wise are kept up to date, important in a moving industry like cryptocurrency mining.
I am sure the Mining Rigs are also kept way more securely, safer and sustainably than I could manage.
To become a Tenant of a Cloud Mining Service Provider and start to mine cryptocurrency on the “cloud” you must first purchase a Mining Algorithm and Hashrate Contract. The contract will determine how much mining you will do in the DataCenter as a tenant on the provider’s hardware.
Prices For Hashrate Do Change: Digital Currency Mining Cloud Providers like HashFlair.io will adjust their prices. I am sure if their tenants were making 100x fold profits, new contract prices will go up. This price adjustment happened in December 2017 when HashFlair.io more than doubled their hash power price of their SHA-256 service offering.
The important thing to note is when you buy your contracts for Hashrate, as rate prices change, your contracts you’ve purchased in the past do not. Price changes in mining rates are for new contracts only, old contracts are locked into the terms at the time of purchase.
The deposits from Mining Payouts of your contracts yield to your Account Balance are cumulative across the contracts you own.
Buying more hash power will be on a new contract with new contract terms.
Buying In Increments
HashFlare.io let you purchase Hashrate in small increments. This means that you can make multiple purchases that you can afford over time that matches your budget. Even with $50 you can purchase a Cloud Mining Contract and stand to make a potential profit.
Make sure you run the numbers so that you can reach a minimum payout threshold. One minimum payout for the length of your contract term, twelve months, should be at least your first initial Hashrate Contract purchase you buy unless you’re planning to follow up you Hashrate Contract purchase with others after so you will reach that minimum payout threshold.
If your plan is investing over time than smaller increments I don’t think there are overhead fees associated with the contract purchase it should cost you as much to make 1 purchase of 1 THz as 10 purchases of 0.1 HZ of the same algorithm given the hashrate rice did not change over the period of making your 10 purchase.
Its a great way to make a passive cryptocurrency income.
The benefit of being able to invest in small increments is that you can choose our hashing power to match the budget you want to spend on your Digital Cryptocurrency Mining venture…what fun…
I’ve seen videos of young adults getting into Cloud Mining contracts with very big numbers riding on them… I can’t say if they are right or wrong, but I can say they are doing it and they are thrilled with their videos.
The nice thing about HashFlair.io and their plans being on demand and available in smaller increment is for many opens the gate that for other cloud providers is a friction point or a barrier to entry.
For example at Genesis Mining, you can not buy a 1-year contract for just $40 like you can at HashFlair.io. The starting price when I went was $800. If I was not keen on Cloud Mining or If I was not confident in its ROI, that $800 could is a big price tag. Granted the contract terms are for two years, it’s still high given I can start at HashFlair.io for 10 times less. If you’re already a Cloud Miner, the high contract prices might not phase you as you know you’re focused on the ROI, and in theory, the bigger your tenancy on those Mining Rigs, the higher payouts it should return.
For the average Cloud Miner, if you’re on a budget for your venture, or increasing your Tenancy’s Hashing Power over time, the bigger increased increment steps, like those that are above $500 are a definite barrier to entry, so its good HashFlair.io let you buy hashpower at very small rates.
Minimum Withdrawal Amount – there is a Minimum Withdrawal Amount to consider and I will talk about it to explain why:
HashFlair.io (As with other cloud mining providers) have a minimum withdrawal amount. That is the amount of bitcoin or other digital currency your mining that you would have to have mined before your allowed to withdraw your earnings from our clouds account balance into your own wallet. It is really important to make sure you reach minimum withdrawal amounts otherwise you can not transfer the bitcoin you have mined from your account balance into your wallet.
The reality is, a small increment of hash power in a lone mining contract, may not ever reach its first payout minimum threshold by the time the contracts expired.
Be smart and set targets/withdrawal amounts and dates you expect to withdraw into your cloud mining strategy and consider it when you’re buying your contract’s hash rate. Be cognizant of the minimum withdrawal amounts and know what dates your contracts will let you reach it.
Know when you want to get paid out:
For example, if you have a small tenancy, it may be six months or longer before you can withdraw anything.
What you don’t want is a contract that will run for twelve months and lets your withdraw every seventh month or a sole contract that will run for twelve months but will reach its Minimum Withdrawal amount on Month thirteen.
You should plan for minimum withdrawal amounts because if your increment/plan falls short of a minimum withdrawal amounts, you may be losing out on what you’ve mined since your last withdrawal. The thing you want is your mined currency stuck in inventory waiting in your Cloud’s Account’s Balance and not in your digital wallet. So be sure to mine enough cryptocurrency yields that you can meet a minimum payout by the end of your mining term or at least at some stage in it without too much Cloud Account Balance left over.
<pclass=”dwb_p”>Hashrate is purchased in contracts over time. You can purchase it on demand though allowing you to scale up and to the amount you’ve allocated for your venture as a tenant.
One thing I’ve noticed is prices for Hashrate Contracts can change, by change I mean increase. Its also not like the company is infinitely scalable, just scalable beyond what you or I could afford. Data centers can run out of capacity. Contract offerings/plans do get sold out
At the time of this writing is a red Limited stock notice on the offering page on their SHA-256 contracts.
This notice of Limited Stock was not there two weeks ago. It may explain the more than twofold jump in Hashrates prices in the last two weeks. With Availability and the ability to increment Hashrate by buying contracts in smaller amounts, even modest investors have access to scalability.
On the other hand for example, at the time of this writing, Gensis Mining https://www.genesis-mining.com/ now has all their contract plans for Cryptocurrency Mining Algorithms, like those for Bitcoin, are sold out. in Decenmber 2018 https://www.genesis-mining.com/ mining was only offering Monero Mining Algorithms contracts. The Monero mining algorithms are not bad contracts and you can broker them for Bitcoin and Litecoins. I actually purchased a contract and went back to purchase two more from Genesis Cloud Mining since.