Let It Rain Down Sats
As Bitcoin mining continues to gain popularity, more and more companies are offering different ways for the every day pleb to get involved.
If setting up a home mining rig isn’t a feasible option and you don’t have the funds to make that initial payment outright for an ASIC miner, then cloud mining could be what you’re looking for.
Companies that are set up for cloud mining will have different contracts so always make sure you read the fine print.
What Is Cloud Mining?
Cloud mining allows individuals like us to be involved in Bitcoin mining without having to own, maintain or repair any ASIC miners or facilities.
Instead, existing mining operations will offer agreements where people can buy a portion of the total hash rate that their operation produces for the duration of the contract.
This will often include an agreed payout amount or target return on investment (ROI) although the terms may vary depending on the overall profitability of the mining company. In other words, if the mining company can’t sustain its operations, it might affect your contract!
What Are The Risks With Cloud Mining?
In an ideal world, cloud mining services will be honest, sustainable and profitable for everyone involved. However, despite the aim of cloud mining services to have a very low barrier to entry for individuals, the factors to consider are that:
• You don’t actually own any of the hardware,
• You are trusting a third party with everything,
• The company could be selling more hash rate than they actually have,
• The company could just disappear with customer funds,
• The company may keep your earnings or charge fees for withdrawals,
• The company could end a contract due to unforeseen circumstances
Generally, if the price of Bitcoin is stable or increases in a bull market then you will likely get some good earnings but conversely, in a bear market, you could earn less than the running costs but this is true for all mining.
However, with cloud mining, if the bear market continues for a sustained period then the cloud contract could easily be terminated by the company.
That’s not to say there aren’t legitimate companies out there but you will need to be very vigilant when you DYOR. Check review sites and read the small print to make sure you are comfortable with what you are signing up for.
What Companies Provide Cloud Mining Services?
|Mining Rig Rentals||https://www.miningrigrentals.com/|
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