Steemit Crypto Academy - Lesson 5 - Homework Post for @besticofinder
Hello awesome people, how is everyone doing today, hope everyone is having a great week. I’m super excited to be part of this lesson 5 and to partake in the topic and to share my knowledge as well. Really enjoying these lectures so far and for me, I find it as a great way to expand my knowledge on cryptocurrency-related topics. This week’s lesson is still a continuation of Cryptocurrency Mining but focusing on cloud mining… mining is always an interesting topic for everyone in the blockchain world so for me, it is amazing to share my knowledge on the topic “cloud mining”…
What is Cloud Mining?
Cloud mining is yet another type of cryptocurrency mining but instead of using physical machines, it uses a remote data center or cloud computing power. Simply put, cloud mining is simply a process of crypto mining that makes use of a rented cloud computing power, without the need of having hardware. Because this typing of mining is done on the clouds, it comes with a lot of pros and cons as well.
What Are the Best Cloud Mining Platforms?
Cloud mining has become a lot more popular in recent times and a lot of miners are utilizing them in their mining operations. At the moment, there are a number of very good cloud mining platforms that offer really good cloud mining services.
- Hashflare – This is one of the top cloud mining services out there and have been around for some years now.
- Genesis mining – This is yet another top cloud mining providers, they are said to have a mining farm that is located in Iceland.
- Bitcoin Pool – bitcoin pool is another very good cloud mining providers. They are considered well-established and popular when it comes to cloud mining.
- Hashnest – they are considered as one of the top cloud mining providers and are said to be backed by one of the big names in ASIC mining machine.
Advantages of Cloud Mining
Cloud mining have become a lot popular in the cryptocurrency mining sector and as expected, there are advantages that come with cloud mining...
Less energy consumption for miners
Energy consumption has remained one of the major drawbacks of the traditional hardware cryptocurrency mining most especially in the case of bitcoin mining. The mining hardwares consumes a lot of power and thereby greatly reducing the profit margins of the miners. This is one of the advantages of cloud mining because there is no physical hardwares and the miners don’t have to pay expensive fees for high power consumption.
No need for expensive mining machines
We all know how expensive crypto mining hardware cost, but cloud mining has greatly reduced the cost for miners as they don’t need to purchase those expensive mining equipments and machines.
Less technical knowledge required
Setting up a mining rig requires good technical knowledge and this is one area that not many people are good at. With cloud mining, the technical side of things is handled by the cloud mining providers.
No installation costs
Unlike hardware mining where there are cost for installation of hardwares and softwares, in clound mining, there are no installation cost as everything is handled in the clouds.
No noise pollution
This is one area of hardware mining that is a big problem. Mining machines make a lot of noise because of the work the machines are doing and the hours the machines are running. In cloud mining, there is nothing like noise pollution.
Disadvantages of Cloud Mining
Like they say, everything that has an advantage has a disadvantage as well, so it comes as to no surprise that even though cloud mining comes with a bunch of advantages, it also comes with its own disadvantages as well…
The profits can be highly based on demand
This can be a major problem in cloud mining because the profit received can be greatly affected by demand
Cloud mining provider can close down business
Compared to hardware mining where the miner owns the equipments, this is another major problem of cloud mining because even though cloud mining can be amazing and profitable, you don’t own the service and the cloud mining provider can shut down the business or go out of business due to different factors.
Plenty scam cloud mining services
This is another major problem because people can fall into the hands of scams claiming to be legit cloud mining providers, which can lead to loss of funds.
Cc:
@steemcurator01
@steemcurator02
@steemitblog
@besticofinder
Hello @chimzycash ,
Thank you for submitting homework task 5 ! I must say it was a good read .
Yes , for most of the platforms we don't know who is behind this .. we don't know the owners . They can run with our money anytime they need. So there is a considerable risk. [6]
Thank you
Thanks!