What Is Cloud Mining

 

Cloud mining is a mining process that uses shared processing power running from a data center. This method is much easier than building your own mining rig .

In Cloud mining we rent Hash power provided by the provider. We don’t need a host or space like a website to host mining software

For example, if the provider has devices with a total of 10 Tera Hash, then a cloud mining rental offer will be opened. If all hashes are sold out, the user must wait for the availability of the next device.

For cloud mining, usually only a computer or laptop is needed at home to access cloud mining, certain settings and entering the wallet address that we have.

There are various advantages of cloud mining, here is a list.

Advantages of Cloud Mining

More Conducive Situation

Cloud mining definitely doesn’t make the room noisy, not a single rig standing at home. Everything is controlled remotely with just a computer.

Cheaper Electric Expenses

Reducing the electrical load at home, because mining requires large electrical power. So it is not suitable if it is built at home electricity rates.

No Need to Worry about Broken

No need to worry about hardware damage or replacement. Because everything has been provided by cloud mining service providers.

We are free to do activities outside the home without having to think about the condition of the mining rig. No need to worry about network constraints and frequent power outages.

Cloud Mining Disadvantages

The advantages of cloud mining are tempting, but it is also necessary to note the disadvantages of this system.

What needs to be questioned, when a service provider endlessly offers cloud mining.

This is what is sometimes still blurry, there is no clarity where the mining location is.

And one thing to remember, the devices and sources of electricity used are quite large in cloud mining development.

Don’t rush with the calculation of cloud mining profits, there are many cases of scam or fraud out there.

The following problems are most often experienced by crypto miners when hiring cloud mining:

1. Most often experience fraud or scams, where the web host is unclear and mining operations are opaque.
2. Of course the profit in mining coins is less or lower than building your own mining rig. Because some of the profits will be deducted from daily bills which include maintenance costs and electricity expenses.
3. Cloud mining contracts can suddenly be terminated due to inappropriate bitcoin prices. It all depends on the market price of bitcoin, too low a value is unlikely to cover operational costs.

How to Determine Cloud Mining Risks

How to determine the risk of cloud mining, is a website a fraud or a scam? In theory, cloud mining generates profits no faster than building your own mining rig.

For example, cloud mining calculations at Eobot are the fastest to generate profit over 3 years. Calculations are assumed with the current level of difficulty and bitcoin exchange rate.

If there is a cloud mining provider that offers much faster profits, you need to question the system. Is it a scam, HYIP, or maybe it’s a multi-level system. Most ordinary people are trapped on the lucrative side, after the investment they get is just the opposite.

Is Cloud Mining Profitable?

Yes, it can be profitable, but funds must be spent first to pay for cloud mining services. The profit you get will really depend on the strength of the miner used by the pool miner, if you have good specifications then there is a possibility that it will generate high returns.

Even though you have the possibility of profit, you still have to be prepared if you experience losses because mining results and miner income often depend on the level of difficulty and fluctuating crypto prices.

Cloud mining is a way to mine more easily without the need to understand too much about the mining process itself, but it’s important to pay attention to all the risks involved in this method, because not all cloud mining service providers are of high quality.

Crypto Warning: Bitcoin "On the Road to Irrelevance" - What is your opinion?

 

Crypto Warning: Bitcoin "On the Road to Irrelevance" 

Bitcoin’s value is artificially propped up and shouldn’t be legitimized by regulators or financial firms as it’s more akin to gambling, the European Central Bank said.

In an unusually outspoken criticism of cryptocurrency, the ECB report said it was unsuitable as a payment method and denied its use as an investment vehicle.

Bitcoin’s value peaked at $69,000 (£57,000) in November 2021 before falling to its current price of $17,800. Its supporters believe it will rise again after the turmoil caused by the collapse of cryptocurrency exchange FTX.

The ECB authors said any revival will be “an artificially induced last gasp before the road to irrelevance”.

Global regulators are drafting rules for the crypto world, a complex world that ranges from stablecoins — ostensibly backed by conventional currencies — to forms of lending on the blockchain or digital ledgers that underpin those coins.

UK government ministers said they want the UK to become a global crypto hub by allowing stablecoin regulation. The Prime Minister, Rishi Sunak, while he was Chancellor, even commissioned a project to produce one “NFT (non-fungible token) for Britain” – a digital artwork using blockchain technology to produce art like Bitcoin.

The authors of the ECB report, which include Ulrich Bindsell, its director for market infrastructure and payments, were scathing, saying bitcoin’s “conceptual design and technological flaws make it questionable as a means of payment.”

“Real bitcoin transactions are cumbersome, slow and expensive,” they say.

They have labeled the currency a “speculative bubble” that relies on new money pouring in and said it has repeatedly benefited from waves of new investors drawn to “the manipulations by individual exchanges or stablecoin providers.”

The report claimed that big investors also fund lobbyists “who make their case with lawmakers and regulators.” In the US, the number of crypto lobbyists “nearly tripled from 115 in 2018 to 320 in 2021.”

It warned the financial industry of the long-term damage of encouraging Bitcoin investment, saying that “the negative impact on customer relationships and reputational damage for the entire industry could be enormous.”

More of business

They accused politicians of “facilitating” a cash inflow by publicly endorsing Bitcoin’s purported virtues while making it appear that crypto assets like Bitcoin are “just another asset class” like stocks, bonds, or real estate, even though the Risks are “undisputed among the supervisory authorities”.

Despite calls for better regulation, it is a long time coming, they warn. The EU has agreed a comprehensive regulatory package with the Markets in Crypto-Assets Regulation (MICA), but US authorities have not yet been able to agree on rules.

The prospect of regulation has “enticed the traditional financial industry” to make Bitcoin easier for more customers to access. The entry of financial institutions suggests to retail investors that investing in Bitcoin is sound, they warn.

They also believe that the new technologies behind bitcoin and broader digital financial innovations – like blockchain – “so far have created limited value for society – no matter what the expectations for the future.”

They also refer to the Bitcoin system as an “unprecedented polluter.”

“First, it consumes energy on the scale of entire economies. It is estimated that bitcoin mining consumes electricity comparable to Austria per year. Second, it produces mountains of hardware junk. A bitcoin transaction consumes hardware comparable to the hardware of two smartphones.

“The entire bitcoin system generates as much e-waste as the entire Netherlands. This inefficiency of the system is not a defect but a feature. It is one of the distinctive features to ensure the integrity of the fully decentralized system.”

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