What is Bitcoin Cloud Mining?
Cloud mining or cloud hashing enables users to purchase mining capacity that of hardware in data centres.
Two operators, Hashflare and Genesis Mining, have been offering contracts for several years.
Bitcoin cloud mining enables people to earn Bitcoins without bitcoin mining hardware, bitcoin mining software, electricity, bandwidth or other offline issues.
Bitcoin cloud mining, sometimes called cloud hashing, enables users to buy the output of Bitcoin mining power from Bitcoin mining hardware placed in remote data centres.
Then all Bitcoin mining is done remotely in the cloud. This enables the owners to not deal with any of the hassles usually encountered when mining bitcoins such as electricity, hosting issues, heat, installation or upkeep trouble.
What are Bitcoin Cloud Mining Advantages?
- No excess heat to deal with
- Quiet because of no constantly humming fans
- No electricity costs
- No bitcoin mining equipment to sell when bitcoin mining is no longer profitable
- No ventilation problems with hot equipment
- No preordered bitcoin mining hardware that may not be delivered on time by bitcoin mining equipment suppliers
What are Bitcoin Cloud Mining Disadvantages?
FRAUD!!!
- Unverifiable or otherwise shady Bitcoin cloud mining operations
- No fun! If you like building your own Bitcoin hashing systems.
- Lower profits – Bitcoin cloud mining services or mining company will have expenses
- Bitcoin mining contracts may have the ability to cease operations or payouts in the contracts if the Bitcoin price is too - low
- Lack of possession of the Bitcoin mining hardware
- Lack of ability to change the Bitcoin mining software
Best Bitcoin Cloud Hashing Services
Being listed in this section is NOT an endorsement of these services and is to serve merely as a Bitcoin cloud mining comparison. There have been a tremendous amount of Bitcoin cloud mining scams.
Hashflare Review:
Hashflare offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while automatic payouts are still in BTC. Customers must purchase at least 10 GH/s.
Genesis Mining Review:
Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available.
Hashing 24 Review:
Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.
Minex Review:
Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.
Minergate Review:
Offers both pool and merged mining and cloud mining services for Bitcoin.
Hashnest Review:
Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoin miners. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-date pricing and availability on Hashnest's website. At the time of writing one Antminer S7's hash rate can be rented for $1,200.
Bitcoin Cloud Mining Review:
Currently all Bitcoin Cloud Mining contracts are sold out.
NiceHash Review:
NiceHash is unique in that it uses an orderbook to match mining contract buyers and sellers. Check its website for up-to-date prices.
Eobot Review:
Start cloud mining Bitcoin with as little as $10. Eobot claims customers can break even in 14 months.
MineOnCloud Review:
MineOnCloud currently has about 35 TH/s of mining equipment for rent in the cloud. Some miners available for rent include AntMiner S4s and S5s.
Best Bitcoin Cloud Mining Contracts and Comparisons
Bitcoin cloud mining contracts are usually sold for bitcoins on a per hash basis for a particular period of time and there are several factors that impact Bitcoin cloud mining contract profitability with the primary factor being the Bitcoin price.
For example, Pay per GHash/s would be 0.0012 BTC / GHs for a 24 month contract.
Contracts vary from hourly to multiple years. The major factor that is unknown to both parties is the Bitcoin network difficulty and it drastically determines the profitability of the bitcoin cloud hashing contracts.
Bitcoin network difficulty is a measure of how difficult it is to find a hash below a given target.
The Bitcoin network has a global block difficulty. Valid blocks must have a hash below this target. Bitcoin mining pools also have a pool-specific share difficulty setting a lower limit for shares.
The Bitcoin network difficulty changes roughly every two weeks or 2,016 blocks.
There are all types of cloud mining options for other forms of blockchain technology.
Best Litecoin Cloud Mining Services and Comparisons
There are limited options for Litecoin cloud mining contracts. If nothing on the list below meets your needs, you can buy Bitcoin cloud mining contracts (listed above) and simply convert the bitcoins you earn to litecoin.
Hashflare Review:
Hashflare offers scrypt mining contracts with a minimum purchase of 1 MH/s.
Genesis Mining Review:
Genesis Mining offers Litecoin cloud mining contracts.
Minex Review:
Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.
Minergate Review:
Offers both pool and merged mining and cloud mining services for Litecoin.
Eobot Review:
Eobot offers Litecoin cloud mining contracts with 0.0071 LTC monthly payouts.
Best Dash Cloud Mining Services and Comparisons
There are limited options for Dash cloud mining contracts. If nothing on the list below meets your needs, you can buy Bitcoin cloud mining contracts (listed above) and simply convert the bitcoins you earn to Dash.
Genesis Mining Review:
Genesis Mining is the largest X11 cloud mining provider. Genesis Mining offers three Dash X11 cloud mining plans that are reasonably priced.
Bitcoin Cloud Mining Scams
There have been a tremendous amount of Bitcoin cloud mining scams like the possible $500,000 Bitcoin cloud mining ponzi scheme that was uncovered. Potential buyers should be extremely guarded and careful before purchasing any bitcoin mining contracts. Services to beware of:
Scrypt.cc Review:
Scrypt.cc allows purchase of KHS in a matter of seconds, start mining right away and even be able to trade your KHS in real time with prices based on supply and demand! All KHashes are safely stored and maintained in 2 secured data-centres.
PB Mining Review:
Claims to operate Bitcoin mining ASIC hardware. When customers buy a bitcoin mining contract then they will begin earning Bitcoins instantly. At Piggyback Mining, they cover the electricity costs and all Bitcoin mining pool fees. The Bitcoin mining contract is 100% insured because they want customers to succeed.
Bitcoin Cloud Services (BCS) Review:
Appears to have been a $500,000 Ponzi scam fraud.
Zeushash Review:
Appears to have halted payouts.
Bitminer.io Review:
Based on user reports they appear to have halted payouts.
Just started mining with upmines.network and the experience is going well. Quick customer service and insightful.
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Coins mentioned in post:
Hey there,
Nice article! The problem is that 1TH of mining power never gives you the same in different cloudmining options, which is why I made a very extensive cloudmining comparison sheet which allows you to make an estimation of future mining profits using difficulty and mining growth rates. However I am missing one important function to automate the whole calculation.
Explanation of the sheet and the missing function can be found in my latest post: http://bit.ly/2KUlVp2
I have a bounty of 25 USD in crypto of choice for the person who can tell me the function I need (+ a mention in the sheet :))! I really hope someone can help me! Thanks!
Thanks for the detailed review of all major cloud mining sites! Maybe another article on this topic will be useful for you, simply because I noticed that you didn’t feature Bit Miner, at least. Here’s this guide: http://miningtop10.com/ . I also like this lists of advantages and disadvantages, and want to discuss the first drawback. Why are you sure that cloud mining is fraud? Waiting for answer.