What is cloud mining?

Mining in the past and today

“Mining” describes the process of validating a proof-of-work blockchain. In principle, anyone can take part in this process. All you need is a computer, an internet connection and electricity. However, the industry is now highly competitive. That is why normal computers are usually no longer sufficient for mining.

As the world’s largest cryptocurrency, Bitcoin also has the largest mining industry in the world. While that’s generally a good thing as it shows massive interest in the currency. But it also means that the competition is so fierce that no one can mine the coin with their own CPU or GPU alone, as was possible in the early days.

Instead, entire mining farms are required where the miners use professional mining equipment valued at thousands of dollars. Not to mention the enormous electricity costs involved in running the mining hardware.

Bitmain ASCI Minerhttps://www.bitmain.com/

Obviously not many people can afford that, which is why an innovative solution has emerged: cloud mining.

Cloud mining, Mining without hardware

As already mentioned, cloud mining makes it possible to mine cryptocurrencies without having to own the necessary hardware. Given how expensive the hardware is, this is a preferred option for thousands of people around the world.

Cloud mining is a cheaper alternative. This means that many more people can be part of the mining community, regardless of their financial resources. Roughly speaking, mining is also safer than trading cryptocurrencies. Because when it comes to mining, the most important thing is probabilities.

Fraudulent offers in cloud mining

As in any other area, the same applies here: Be careful with your forbearance! Unfortunately, there are also scams hidden among the many recommended providers. Accordingly, you should inform yourself well in advance. With this bog you will get an orientation for the market. That should make it much easier for you to get started.

I have always received my money from all the providers recommended in this blog.