The essence of cloud mining – how it works, pros and cons, the prospects for cryptocurrency

How cloud mining works

The cloud mining system is a collection of ASIC farms . They are united in a common service network under the control of a central computer. There are electronic farms running special software. The development of electronic money is carried out by making complex electronic solutions. The complexity of the extraction of cryptocurrency is constantly increasing in a certain progression.

With the help of remote mining services, users can mine the main top e-currencies:

  • Bitcoin (on algorithms SHA-256, Script).
  • Dashcoin (on X11).
  • Lightcoin (similar to Bitcoin).
  • Efirium and Zcash (on graphics cards – GPU).

Each user chooses which type of cryptocurrency, the power level he can buy based on their financial capabilities. The lowest complexity of mining networks is in electronic currencies Dash, Litecoin, Etherium, Zcash, Monero . These currencies are currently easier to earn on various services.

Also, some users of cryptocurrencies independently make electronic farms at home for profit (see how to build a mining farm for mining ). These devices consist of several high performance graphics cards from AMD, nVidia brands . Manufacturers even began to specifically produce graphic cards for mining at home.

The advantages of home crypto-production of currencies are the following factors – work for yourself, daily income (depending on the power of the entire farm), fast money transactions (using various Internet services, electronic money can be quickly exchanged for cash).

The disadvantages of this type of earnings are the following technical points – the ever-increasing complexity of mining, household energy costs, the need to cool electronic equipment, the fight against dust, the constant noise from operating equipment.

Interesting facts from the field of cryptocurrency

  • Bitcoin e-coin is leading compared to other digital money.
  • By 2140, the last BTC coin will be mined, a new issue is not yet envisaged.
  • Some issuing companies began to issue real notes, coins of electronic cryptocurrencies. Nominal marks are put on them, there are also QR codes for reading in money terminals.

Ways to extract electronic money on the Internet. Pros and cons of cloud mining

Ways to extract electronic money on the Internet.  Pros and cons of cloud mining

Conventional mining is done at home with the help of a self-made electronic farm. Remote cryptocurrency mining services allow for the extraction of various virtual coins by certain methods. On the servers of companies engaged in the production of electronic money, the necessary necessary equipment is installed.

For each type of cryptographic money the following types of power equipment are installed:

  1. Build graphics cards high level of performance.
  2. ASIC farms for bitcoin production.
  3. The equipment is of mixed type with GPU and powerful computing processors.

Electronic currency Bitcoin uses only the power of computing processors. Other cryptocurrencies (Dashcoin, Litecoin, Etherium, Zcash) are developed on graphic video cards. The complexity of the networks of extraction of electronic money is different everywhere. The highest is currently the BTC blockchain network.

Each way of mining has its pros, cons. In addition, when a user purchases facilities for earning electronic currencies, a service fee will be calculated. When withdrawing received cryptocurrencies, the service also takes a certain fee for transfer to the user’s electronic wallet.

The commission fee for mining services goes to the salaries of employees, to pay for power consumption. Electricity is spent on cooling electronic farms and their work. Due to the fact that the complexity of the network is constantly growing, the profitability is decreasing, companies are gradually reducing the daily payment for their services provided.

The future of cloud mining in the future

Economic forecasts for the extraction of electronic currencies say that in the future the price of crypto money will only grow. The demand for cryptocurrencies is not reduced, there is a steady increase in the purchase and sale of virtual coins. Bitcoin costs are projected at $ 55,000 in 2020. Further, its price can only rise even further (see Investment in cryptocurrency in 2017 – is it worth doing this ?).

Expert opinion: the prospects for the development of cryptocurrency

Anton Likhachev, LixachevMarketing

The potential for cryptocurrency growth is quite large. Bitcoin is predicted and 10 and even 20 thousand dollars worth. Given the ease of use of cryptocurrency for a variety of operations, it is not worth doubting its development. But there are certain risks that come from states.

All countries are well aware that cryptocurrency can not be subject to taxation, so they lack huge money, which means everything will be done to either prevent the development of cryptocurrency, or be able to tax it. Attempting to talk about crypto-ruble once again (see. Russia will issue crypto-rubles ) is a direct proof of this. He was already talked about in the government six months or a year ago, but they did not come to anything like that.

Now they have taken the matter more seriously, but everyone understands that a crypto-ruble or any other cryptocurrency issued by any state will be deprived of the advantages that the same Bitcoin has. Even at the level of mining, the opportunities of earning from ordinary people will be selected, all this will be only in the hands of the state, which means that no such currency will have any advantages.

That is, this is another plus to the development of the same bitcoins. In addition, there are huge organizations that are interested in the development of cryptocurrency ( video card manufacturers ). For example, at AMD, because of the last bitcoin jump, the stock price increased by about 20%, sales of video cards brought them an extra 40 billion in revenue over the last reporting period. Therefore, AMD and other companies will support the growth of cryptocurrency.

Disagreements in the governments of the countries (the next bans or permissions of cryptocurrency) only give greater price volatility to bitcoins, which leads even more people to the cryptocurrency earnings market. And greater demand gives rise to even higher prices. Therefore, in the near future, we can confidently talk about the feasibility of investing in cryptocurrency (see Forecast on the future of cryptocurrency ).

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