Cloud Mining is the process of bitcoin mining using a remote datacenter with shared processing power. This type of cloud mining enables users to mine bitcoins or other choice cryptocurrencies without managing the hardware.The mining rigs are housed and maintained in a facility owned by mining company and the customer simply needs to register and buy mining contracts or shares. Since Cloud Mining is given as a service there is generally some cost and this can result in lower returns for the miner.
Types of Hosting:
Users of hosted Mining equipment can either lease a physical mining server or a Virtual private server and install mining software on the machine. Instead of leasing a dedicated server, some services offer hashing power hosted in data centers for sale named in Gigahash/seconds (GH/s); Users either select a desired amount of hashing power and a period for the contract or sometimes can trade their hashing power.
Beginning/creation Mining Drops Lowest Level Bitcoin Contracts
Leading cloud-based cryptocurrency mining service Beginning/creation Mining announced this morning via an official blog post that the firm would no longer be supporting its lowest level Bitcoin mining contracts. The firm referred to a combination of Bitcoin's downtrend and a difficulty increase around "April and May" that "reduced mining outputs."
Beginning/creation Mining's contracts include a clause that says if the cloud-mining contract returns less than it costs for Beginning/creation to operate the service, the contact will move into a 60-day default "grace period." During the grace period, if cryptocurrency prices don't improve to the point of a money-making state, the contract will be ended/fired.
Beginning/creation Offering Users Upgrades to Five-Year Term Packages
Beginning/creation won't be closing their doors completely. The firm instead is offering users affected by the ending of their lowest level Bitcoin contracts a discounted upgrade to their new "Glowing" plans. Glowing levels range from $285 for 1 TH/s to as much as $6,875 for 25 TH/s.
The discounted upgrade only applies to the cheapest Glowing "Gold" level, bringing the total cost of the (usually/ in a common and regular way) $285 plan, to a lower-priced $180. However, the new Glowing contracts require a five-year term, which could discourage signups given the doubt in the crypto market looking ahead five months, let alone five years.
Other Cloud-Mining Services Share the Same (the) unavoidable, already-decided future
It's not just Beginning/creation feeling the sting from the cryptocurrency (time when stock prices are falling) of 2018. Competitor HashFlare announced in July that they would be ending their SHA-256 Bitcoin mining contracts.
Days later, HashFlare announced via their Facebook that the services will be resumed and contracts would operate on the previous terms. However, the ability to sign up for new contracts remains disabled on their website at the time of this writing.
Could Mining Be the Key to Identifying Bitcoin's Bottom?
Cryptocurrency mining is a business. Businesses need to remain money-making or risk closure or (not having enough money to pay bills). With falling cryptocurrency prices - many reaching one-year lows - even hardware miners are at risk of a money-making state dropping below their operating expenses. Arthur Hayes, BitMex CEO, believes that Bitcoin's "bottom" will be highly strongly related to when Bitcoin miners begin to shut off their ASIC miners to stop operating losses.
Hayes points to the 2014-2015 (time when stock prices are falling) as an example, stating that "high profile miners went under." The outspoken CEO, who (before that/before now) called for Bitcoin to reach $50K by year's end, says that a crypto-mining fellow worker guessed (a number) that $5,000 is the price at which miners would begin changing operations, and $3,000 to $4,000, miners may have to stop operations completely.