Cloud Mining

Starting with its creation, Bitcoin is basically defined by the digitally signed records of its transactions. It is more of an encrypted proof of work that is created under a computer intensive process. Miners use a software that enables them to asses their processing capacity to solve transaction-related algorithms and are then awarded with a certain number of Bitcoin per block. This chain prevents an attempt by a miner to spend Bitcoin more than once which could as well cause the digital currency to be counterfeited simply through copy and paste.

Cloud mining (Bitcoin) used to be conducted on CPUs of individual computers with greater speed and more processing cores leading to more profits. Multi-graphics card systems then dominated the mining systems followed by field-programmable gate arrays (FPGAs) and finally application-specific integrated circuits (ASICs) so as to find more hashes with less electric power usage. It is this constant escalation that has made it difficult for prospective miners to venture into this field unless individuals work together in mining pools. The whole mechanism is specifically created to prevent inflation worldwide.

Bitcoin started with a few individuals and small mining organizations at a time when start-ups could be enabled by single high-end gaming system but now large mining organizations can spend thousands on just one specialized high-performance computer. In cloud mining (Bitcoin), if you were to buy your own mining hardware you would have to integrate it with your computer, install the mining software, join a mining pool and you are ready to go. You would have to let your mining software run day and night and install quality fans to cool your CPU. Of course you also have to pay for increased electricity costs and deal with additional problems if any. Generally, you have to be a little tech savvy to mine using you own equipment because it would take lot more effort on your part to make a Bitcoin.

Depending on the mining platform or company that you have registered under, a small amount may be deducted to cover the costs of maintenance and running the hardware each time you get a mining reward. Since the entire operation benefits from economies of scale, these costs are usually much smaller if you compare them with what you would be paying mining at home using your own software.

As long as you have purchased some hashing power the mining software works for you 24/7. It doesn’t matter what you are doing whether you are sleeping, working on something else or on vacation, the system will still be running. With a more advanced cloud mining power, you will still earn Bitcoin even if your computer is turned off for days.

However, bear in mind that cloud mining (Bitcoin) bot-net infections are common in the mining world. These are systems that mine Bitcoin without the owner’s knowledge and then channel the funds to accounts connected to the bot-net masters.