What is Cloud Mining
What is Cloud Mining
For understanding this concept, we need to present some definitions. The phenomenon of cryptocurrency
is growing day after day and now, a lot of people accept the cryptocurrency like other currencies provided
by a government. Today, a lot of market exchange deal cryptocurrency for other traditional currency.
The traditional currencies were based on the amount of gold (per example) that a country has. Is basically
the same, but in a virtual way? To find a cryptocurrency, your device have to resolve an algorithm
transaction. The action of trying to resolve a transaction is called Hashing. So, to have access to a
cryptocurrency, you have basically two ways: go on the market and buy cryptocurrency or buy equipment
and start mining.
Each cryptocurrency have its own parameters. The Bitcoin, per example, have a specific maximum of
coins who will be discover in its lifetime. This maximum creates a rare effect and is what is creating value.
For regulation, more device mined the Bitcoin, more difficult will be the transaction to be solved.
Today, with the increase of difficulty to solve the transactions, mining cryptocurrency require some
specific equipment who needs a lot of electricity, maintenance, space and cooling system.
In the cloud mining you buy a hashing power contract and you let the experts doing the hosting. You
receive your part of the Bitcoin cloud mining in a day, based on the amount of hashing power you have.
We put some definitions and concept below and we invite you to read it and follow the link to have a good
idea of the mining and the cryptocurrency
What are the risk of the mining and the cloud mining
The risk of the cryptocurrencies and the mining
Like any other currency, the value of the currency may go up or.. down. If you start to mine
cryptocurrency, you have to consider this. Also, the difficulty is another thing to think about. The more
difficult will be the transaction to solve, more difficult will be receiving cryptocurrency. So, for the same
amount of power today, it will be possible to receive less result in the future. Finally, some people
wondering if the cryptocurrency will stop to exist. Obviously, we think that's will never happen. But,
please, before starting mining and become a new member of the world of cryptocurrency, make your own
research and your own idea.
The risk of the Cloud Mining
Like any other product offer on the world wide web, giving money to an organization present always a
risk. In this Gold Rush, we listen bad story about some people with bad ideas. We think this is bad for the
industry. Who to trust? We never know very good people, but some warning light can flash.
You can always go on different blogs and try to make things clear about an organization. Another way
does not believe in miracle. Mining cryptocurrency, like explaining before, need maintenance fees, cost
device and electricity cost. The research and development is going well, and the device is always better
in their rate of Hashing/Watt consummation. For serenity of the organization, a good price most have to
be fixed. If an organization offers a price below the cost, probably they pay the electricity of the old
contracts with the money of the new contract, the day who people stop buying contract will become the
day who you risk to lose yours. Again, you must make your own research and your own idea.
What kind of cryptocurrencies can I mine?
Different algorithms are available
A lot of different cryptocurrencies exist. Each one has decided which algorithm will be used to mine their
coins. The most popular algorithm is called SHA-256. The popular Bitcoin (BTC) use this algorithm to
produce is coins. But other cryptocurrencies use it too. Another algorithm is called SCRYPT. A lot of
cryptocurrencies use this algorithm. This kind of cryptocurrencies is called Light Coins (LTC). This LTC
can be transferred in BTC on the exchange market. After that, we use also the X11 mining algorithm. A
lot of other algorithms exist and it's easy to make some researches on that. But the essential is to
understand that you must mine on the good algorithm if you want to mine a specific cryptocurrency.
At Cloud Crypto Mining, we use 3 algorithm who gives to us more than 130 different cryptocurrencies. On
our dashboard, you can choose to keep the different cryptocurrencies or to convert them in BTC. We
always mine cryptocurrencies who present the best ratio value/difficulty at the moment. So, we
recommend to convert it at the same moment for a maximum of rentability.