Cloud mining is a method for individuals to participate in mining without owning or maintaining mining hardware or facilities.
- Cloud mining is rent of mining equipment hash power. In this case, you do not need to buy expensive mining equipment and do not bear any risks associated with its breakdown. You do not incur additional costs for the hosting and maintenance of equipment, as well as for any malfunction. When you buy a cloud mining contract, you pay a fixed amount for the use of devices located in the data center. The main advantage of cloud mining is the quick receipt of BTC to your wallet. You do not need to wait for a pre-order of the mining equipment for more than 8 months and pay huge sum for it.
- Cloud mining companies will offer purchase agreements for part of their total hashrate to customers. Customers don’t own mining machines, they simply own a portion of the company’s hashrate for as long as the mining contract lasts. In exchange for purchasing some of the hashrate, the cloud mining contract will include an agreed-upon payout.
- The goal of cloud mining is to remove all upfront costs associated with mining from individuals who want to participate in mining, albeit in a very limited way. But in exchange for removing this hardware, maintenance, electricity, and other costs, ownership and control of the actual mining hardware stay with the company and not the clients.
- Several legitimate companies offer cloud mining contracts, but this type of mining service has historically suffered as a target for fraudulent businesses who sell more hashrate than they have or simply disappear with customer funds.
Cloud Mining versus Byt-Miner
- Byt-Miner offers full ownership of mining hardware to its clients, optionality to move mining machines between different facilities, join and swap mining pools, or sell mining machines to other miners for group mining purpose maintained by Byt-Miner.
- With Byt-Miner, miners are not simply signing a contract to buy a portion of someone else’s mining operation. They also buy their own machines, direct the Byt-Miner team to place them in a facility of their choice, and give full control of the hardware to Byt-Miner.