Hi everyone and welcome to homework post week 5. I have gone through the lecture and learned new things, thanks to respected Professor @besticofinder. Now I am going to submit my homework regarding Cloud Mining.

What is Cloud Mining?

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Cloud mining can be termed as the process of mining cryptocurrency by utilizing a remote datacenter that shares the power of processing. In cloud mining, users are enabled to mine crypto assets without managing the hardware. Cloud mining can easily be termed an evolution in the concept of mining pool. There are people who wanted to mine crypto assets but are unable to purchase such costly mining rigs. So, cloud mining is the better solution for this problem.

Platforms of Cloud Mining.

There are several websites that are offering cloud mining services to the users. Users can easily purchase some hash power and share a part of cryptocurrency being mined by these service providers. I am discussing few of these platforms here.

IQ Mining

IQ mining is a cloud mining platform that offers its services to the customers. You can visit this website by clicking here. IQ Mining was formed in 2016 and it is still working good. It provides services of mining different crypto assets like bitcoin, litecoin, ethereum etc.

Genesis Mining

Genesis Mining is a very famous cloud mining website. It was created in 2013 and still it is providing its best services to the users. One can visit the website by clicking here. They claim that they are servicing over 2,000,000 customers from over 100 countries. They mine multiple cryptocurrencies.

Hashflare

Hashflare is a cloud mining website. You can visit this website by clicking here. Hashflare was created in 2015 and still it is running and offering its best services to the users. Hashflare mine different cryptocurrencies like Bitcoin, Ethereum, litcoin etc.

Advantages of Cloud Mining.

Cloud mining is indeed a service that has many advantages that are discussed below.

1. The first advantage of cloud mining is that user has not to buy any hardware like mining rig, for mining purpose.

2. Users has to pay less as these remote data centers are built in such places where the cost of power is cheap. These mining devices use lot of electricity to mine. So, it can be very helpful for users to mine crypto assets with very low cost.

3. Mining rigs/ASICs are very noisy. During mining process, devices generate lot of heat and these devices have many fans to reduce the heat. These fans create lot of noise. So, in cloud mining, there is no such noise.

4. The heat created by mining devices is too much and users have to cool down the temperature of the room being used to operate these devices. For this purpose, users have to manage some fans or may be air-conditioners, thus it can be very expensive. Moreover, it will add extra expenses of electricity and maintenance. So, in cloud mining, there are no such expenses for users to bear. Service providers are responsible for maintenance of miners.

5. A user can manage how much he wants the share of cloud mining to buy. User can purchase a small share at one time and then add some extra hash power by investing some more money when it is available. User can also invest the profit earned by first investment.

Disadvantages of Cloud Mining.

Despite the fact, cloud mining is very useful service but there are also some disadvantages attached to it. These advantages are discussed below.

1. In selection of cloud mining service providers, user has to very careful as there is lot of space for fraudulent activities in this field. There are so many scams reported. So it can be very risky.

2. User has no access to the mining devices, and he has to trust the service providers. In such case, user can easily be cheated.

3. In case, when cloud mining of specific crypto assets is not profitable, some service providers close their services and the user has to bear loss in this case. So, it can be total loss to the user who has invested.

Conclusion.

Despite the fact of scamming, still cloud mining has good future. Because there will always be demand for cloud mining due to the fact that it is very cost efficient, so people will look forward to this service.

Thanks in anticipation.

@steemcurator01

@steemcurator02

@steemitblog

@besticofinder

Regards,

@mawattoo8