Cloud mining : mining cryptocurrencies with cloud
What is Cloud Mining?
Solutions to mine cryptocurrencies have multiplied, and the use of cloud immediately appeared as a great solution; well, it’s great for cloud providers.
NB: Cloud mining is also VPN mining. They can be put in the same category. The difference is that normal VPN providers already block mining from their virtual machines.
The advantages of cloud mining
You do not use your RIG or your computer. Cryptocurrency mining is done directly on the cloud that you rent.
Different clouds can be rented, to mine one or more cryptocurrencies at the same time.
The rental price of the cloud depends on its power to mine.
The risks of cloud mining
- Price risk: by mining a cryptocurrency, you will take time to earn units of that cryptocurrency ; but, the cryptocurrency’s price could very well fall.
- Closure of the cloud rental facility: oh yes. After 2 years of mining a cryptocurrency, what prevents the establishment from closing down, without neglecting to take the cryptocurrencies that you have mined?
and take with it the cryptocurrencies you have mined?
Profitability of cloud mining
The more powerful the cloud you rent, the faster and more cost-effective it is. If you take the basic solution offered by some cloud providers, you have to commit for 2 years at $800. So they provide you with a cloud ready to mine with a certain power. This cloud (basic offer, the cheapest to start with) will generate about $100 per month. It will therefore take about 8 months for this cloud to finally earn you money. At the end of the 2 years, you will have theoretically earned $1,200 (if the mined cryptocurrency has not changed during the 2 years).
My opinion on cloud mining
Even if it means investing in cryptocurrencies, I prefer to buy them and take advantage of any price increase from now onwards.
With cloud mining, you invest an amount, and you have to wait x months before getting the same amount in the cryptocurrency. And the risks are multiplied.