Is Bitcoin Cloud Mining a Good Investment? Yee Kok Siong Explains There are numerous advantages of Bitcoin Cloud Mining. Some of them include - No excess heat. No expense on electricity. No ventilation problem. Zero cases of suppliers that fail to deliver on time. Therefore, people who want to get in "bitcoin cloud mining without managing the mining hardware can opt for bitcoin cloud. They can use the cloud to earn the newly mined coins.
Yee Kok Siong explains cloud mining as sharing of processing power from remote data centers. For Bitcoin cloud, people just need a computer and also make use of the bitcoin wallets. Although there are some advantages and disadvantages related to cloud that every investor should understand before investing in it. Advantages Zero electricity costs A cooler home - no humming fans No equipment needed No ventilation problems Zero chance of letting down by suppliers Disadvantages Opaque operations No proper system Lower profits, as operators need to cover the costs Lack of flexibility and control Contractual warnings Fraud risk Types of Cloud Mining There are different types of cloud mining available in the market. The list includes:
Hosted Mining: In this mining method, a machine, hosted by a provider is leased. Virtual Hosted Mining: In virtual hosted mining, a virtual private server is created and mining software is installed. Leased Hashing Power: Leases hashing power is the most sought-after method of cloud mining by far. In this method, a particular amount of hashing power is leased without any virtual or physical computer. Determining the Profitability There are different methods to calculate the profitability. The web services are designed in a way to work according to hardware parameters. Even after this, a user can calculate the profit through a clear thinking on the costs that he/she is going to invest in cloud. Calculators might ask for the electricity costs or for the initial investment. A user or an individual will be asked for off going and ongoing investments. Since the mining provider is not a user or the one who is going to pay electricity bills, he/she can simply enter the mining monthly bill instead of electricity cost. In case of hardware miners, a user can simply calculate the monthly cost by multiplying electricity charge ($ per KWh) through power consumption and a conversion factor. However in case of cloud mining, the calculations are just opposite. In cloud, the provider provides a user a monthly running cost and he/she need to calculate cost per KWh and put that value into the mining calculator. The cost is calculated not by multiplying, but by dividing the monthly cost by 0.744 conversion factor.
In a nutshell, a user has to decide whether he/she wants to earn profits through this technology or just want to leave this opportunity of gaining profits on the investment. To learn more, please visit here: https://yeekoksiong.wordpress.com/