Successful Bitcoin Mining
Mining, no not the mining where people are armed with pickaxes, I’m talking about the digital kind where people use their computers or special hardware to “mine” cryptocurrencies like bitcoin from thin air. This type of mining has experienced a bandwagon effect which means that everyone around the world has jumped on the bandwagon to start bitcoin mining, to primarily make money or maybe just for fun.
So what happens during bitcoin mining?
Well, every time a bitcoin transaction is initiated a miner will be responsible for ensuring that the transaction itself is actually authentic, as well as the information contained within the transaction is legitimate. The bitcoin mining process also involves countless other miners who are competing against each other to solve a number of complex computational puzzles, whilst using cryptographic hash functions.
What does it mean to be successful at mining, or be a successful miner?
Well before the lure of mining became popular amongst pretty much everyone, it was pretty easy to become a successful miner because all it took was a normal computer with a standard CPU, because there was very little competition if any. Transactions were easy to process and the computationally difficult puzzles were easy to solve, however that has all changed and mining is a completely different ball game.
Bitcoin Mining Demand
There is a huge market for bitcoin mining nowadays, and companies have been established purely for this purpose, and these companies have a seemingly endless pot of money that they can use to purchase hordes of expensive hardware in order to mine as efficiently as possible. Whereas the average “Joe” who only has one bitcoin mining rig set up is in no place to compete with huge companies, so what can he do?
What Is Cloud Mining?
Let me introduce the concept of cloud mining. Cloud mining is where someone uses the benefits of a large bitcoin mining rig that has been established by a company, that has plenty of money that they can invest in specialized hardware. Put simply it is bitcoin mining via cloud technology. Some companies actually own entire buildings filled with mining rigs.
Cloud mining allows people to buy contracts that give users access to remote data centers that are hosted by companies, and it can quite often turn out to be a lot more profitable than solo mining. There are some major benefits to cloud ming too, like no added electricity costs because you are not running an expensive mining rig in your home, and when mining no longer becomes profitable, you won’t have any equipment to sell afterward.
It is becoming one of the fastest growing methods of mining and is a way of alleviating heavy costs of everyday citizens who want to be part of the cryptocurrency trend or those who want to make a bit of money on the side. The process is very simple and only requires a user to create an account with a cloud mining company, where the user will have to select certain options like contract period and hashing power. At the end of the contract’s lifespan, the user can withdraw profits or renew the contract.