Crypto Academy Week 5//Introduction to Cryptocurrency Mining 2// Submitted to @besticofinder
Nice lecture today Prof. @Besticofinder.
Previously in our last we class, we said mining is the act of employing one or more computers device systems in order to solve a cryptographic problem, in this process, cryptocurrency transaction are verified and new tokens are created.
Week 5 task
What is Cloud mining**
Cloud mining is more like a centralized kind of mining, it is centralized because it has a central body operating and managing it, unlike the normal way of mining, in cloud mining you need not have any hardware before you can begin mining. All hardware, applications specific integrated circuits (ASIC's), etc. In cloud mining a company can choose to either purchase or lease out his hardware to a central control party who will ensure the syst is in full operation.
Users, with the with the I tension of mining then pay a certain amount according to their desired hash rates which is also the computational power. Also recall, that during the process of mining, new coins are birth forth, new blocks are created, cryptocurrency transactions undergo verification and finally distribution of incentives to miner.
Finally, cloud mining introduces mining to everyone reach as anybody not regarding how educated you are can be one a miner.
Best Platforms for Cloud Mining
There are numerous cloud mining platforms but these can be trusted:
1)Awesome cloud mining
2)ECOS mining platform
3)Hashing24
4)Kudo miner
5)BeMine mining platforms
Advantages and disadvantages of Cloud Mining
Let first start with the advantages:
1)No form of Training required
Cloud mining does not require any training in other for you to start mining. As earlier stated, anybody can become a miner. There are no contact with the operating hardware, this makes it easy for anyone to mine cryptocurrency. You don't have to go through a form of education before you know how to mine, all you need to buy some hash rate, get the best cloud mining app, start mining.
2)Limited or Zero cost
The central body or organization is responsible for managing all equipment, both the hardware and everything. By this responsibility is shifted to them leaving you the miner free from any form of cost. As earlier stated, the equipment for mining can be very expensive and not everybody to afford it. This makes it easier for anyone to mine.
For the Disadvantages of Cloud Mining, we have:
1)Very low earnings/Revenue
Every businessman who invest in any platform do so for the sole aim of profit, cloud mining could be a very lucrative business but sometimes its not. Prices of cryptocurrency are not steady, today prices are up and in few hours prices are down, miners need the price of cryptocurrency to be on the high to make profit.
Moreover er, every miner is at the mercy of the central authority, what ever is distributed among the miners can not be debated, so the centralized system is a big problem in mining.
2)Rising incidence of Scam
As Cryptocurrency awareness grows, so does the rate of scams and attacks. Mining is done using the internet, even though during mining, one of the obligations is to protect the system form hack, scamming is still a cause for concern.
However, one need to be careful about choosing a mining platforms as most people through this have also been discouraged from mining. Most platforms are not trust worthy and may end up not returning what was invested into the platform.
3)Centralization Problems
Cloud mining is fully centralized, it is there necessarily to trade with caution. It is not easy putting all your hope and trust in one system that may fail. This is a serious concern. Always remember to do your research before involving any mining platforms.
Thank you Prof. @Besticofinder for the lecture.