Homework Task 5 by professor @besticofinder Cloud mining

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Hi there, I will be completing my homework task by @besticofinder thanks to @steemitblog for such an awesome initiative.

1. What is Cloud Mining?
2. What are the best cloud mining platforms?
3. Advantages and disadvantages of cloud mining?

Will be sharing some insight into some of the above content.
Here is a post previous written by me on what crypto mining is to get some clue on how the mining process works in the crypto space.

In a very simple term, cloud mining involves a collection of several computing devices or mechanism which are put together collectively to mine cryptocurrency such as Bitcoin.

Since the cost of maintaining mining software are very expensive with help of cloud mining firms or pool individual investors or interested users can participate in mining cryptocurrency by buying hash power from mining cloud companies which can be used for paying investors proportionally base on shares bought from the mining cloud company.

Here's a simple analogy Mr. A is interesting in mining cryptocurrency due to some financial or some technical reasons Mr. A could not find a conducive environment to set up a small mining rig so he looked for an alternative means where he could mine cryptocurrency alternatively without going through the stress of setting up a mining rig, he, therefore, decided to buy some mining powers from Mr. B mining cloud company.

The money Mr. A used for buying hash power in Mr. B company will be used to cover up maintenance, energy bills payment, and so on and in return, some percentage of the mined currency will be shared with Mr. A as a reward for participating or buying hash Power in the company.

Cloud mining involves mining for cryptocurrencies by leasing or purchasing mining equipment from a third-party cloud provider, who is responsible for maintaining the equipment.

What are the best cloud mining platforms?

Genesis Mining is considered to be one of the best clouds mining company it was founded since 2013 and have over 2 million customers today it offers both bitcoin and other altcoin mining features.

IQ Mining has been active since 2016

Advantages and disadvantages of cloud mining?

A major advantage of cloud mining involves

1. Less hardware investment; since buying mining hardware requires a huge amount of start-up capital with help of cloud mining companies investors can easily participate by buying hash power and start enjoying the benefits of cloud mining.

2. Cost of maintenance and technical knowledge; with cloud mining companies investors are saved the stress of setting up a rig that can require fundamental knowledge and also no need for always checking up on the hardware for clean up.

Disadvantages

1. Scams/fake mining cloud companies; this aspect is very important I've personally been a victim of a cloud mining company where I did buy some handful of hash power and in return, I never got dim.
   All my investments were gone, if you are interested in buying any mining power make adequate research on companies you are investing or buying from.

#cryptoacademy #besticofinder-week5