We all know that a Bitcoin miner can earn a good amount of Bitcoin on completing just one block. Do you also wish to earn Bitcoin instead of investing in it? Thanks to cloud mining, you can actually do that without going through the hassle of an actual Bitcoin miner.
Appealing, isn’t it? Let’s take a look at how all of this actually works.
How is Cloud Mining Different from Actual Mining?
To understand the concept, you must know that in Bitcoin mining, the miners have to handle a lot of hardware equipment. You need a GPU (Graphics Processing Unit) or an ASIC (Application Specific Integrated Circuit) which helps to set-up a mining rig. On top of that, solving the complicated hash is no cake walk.
However, if you’re a cloud miner, neither do you need any of the hardware, nor do you have to solve the hash problems. You’re simply funding a real miner by purchasing what they call “hash rate”.
Here’s how it works:
- You go to a cloud mining website that offers hash rate contracts.
- Buy a certain amount of hash rate for a certain period of time.
- When the miner solves the hash, you get to share a certain percentage of the Bitcoin earnings.
Now, this may seem simple but there is a little more to it. This is technically making an investment to earn Bitcoin. So, you have to be sure of 2 things when you’re doing it – firstly, you need to know the cloud mining company is genuine. And secondly, you need to be sure that it is good enough to actually make a profit for you.
Your investment is certainly lower here than purchasing Bitcoin directly. Moreover, you don’t have to be a genius to be a Bitcoin miner now – only smart enough to know where you’re putting your money.