Cloud Mining Bitcoin Via Scrypt and SHA-256 Protocols
Mining Bitcoin on a personal scale at home can be difficult because of the incredible amount of processing power it requires to earn anything at all. However, you can now purchase Bitcoin mining services from online sources that are essentially cloud server farms offering the powerful processing systems required for such mining.
You’ll see results right away once you sign up for a mining contract. Updates occur every minute, so you’ll start to see something immediately. If you want to own fractions of cloud instances instead of only renting them, you can do so. You won’t have to worry about maintenance of mining hardware hosting or dealing with the massive amounts of heat that get generated as a result of mining.
Another great benefit of mining Bitcoin through the cloud is that you can choose your payout cryptocurrency, so you aren’t necessarily bound to Bitcoin. There are contracts through various services that range from 24-hour periods all the way up to 10 years. Once you’ve made a purchase or signed a contract, it isn’t possible to return or exchange it.
With the Cloud SHA-256 protocols, you’ll be able to follow the difficult Bitcoin mining system with no trouble. The system continues to become more complex, and that may lead to reduced payouts over time. You can achieve speeds of 1.0 GHS per every owned full instance of cloud computing.
Scrypt is another system of protocols that is used for Litecoin, which has also grown in complexity over the years. If the price of Litecoin rises over time, the reduction in payouts won’t be felt. You can achieve speeds of 1.0 MHS per every owned full instance of cloud computing.
Cloud mining services will take a fee out of the profit for maintenance and electricity, and in most cases, it is possible for a rented instance to be profitable in about 40 or 41 months.
While it might be possible to earn a significant amount of money over time with enough mining, it should not be thought of as a real source of income or even a real investment. It’s more like a hobby for those who are interested in computing and what it can achieve. As with any hobby or investment, you should expect a real possibility of losing your initial stake or not making your investment back.
Since this hobby deals with cryptocurrencies, which are already prone to immense fluctuations in value, it is quite easy lose your investment value if you actually buy hardware. Other issues include exchange rates, liquidity, market price fluctuation, risks in policies, and demand.
Investors and hobbyists should remember that there is no guarantee when buying any sort of mining service, but cloud mining services are a bit more stable simply because you don’t have to buy the mining rigs or maintain it yourself. There are certainly other factors that need to be taken into account, like transaction costs, taxes, commission rates, and other economic consequences. Make sure to fully research any ASIC miner purchase decision before you land on any final choice.