Cryptocurrency mining is a process that allows you to verify transactions, add new information to the database (blockchain) and introduce new coins into circulation. Mining is important as it enables cryptocurrencies to operate as a decentralized peer-to-peer network.
This is a similar concept to mining gold or any other metal as Bitcoin "exists in the software" and must therefore be "discovered". This is thanks to specialized mining equipment (miners) that solve the encryption tasks and then deliver the cryptocurrency.
Cryptocurrency mining in the cloud is a service that has shared computing capabilities and is performed from a remote server center. Therefore, cloud mining allows any user around the world to mine Bitcoin or any other cryptocurrency that can be mined without operating or investing in cryptocurrency mining hardware.
The cost of mining cryptocurrency can be very highespecially when it comes to bitcoin mining. As the largest and most popular cryptocurrency in the world, Bitcoin also has the largest mining community. The market is so competitive that no one can actually mine BTC on their own, for example using their own CPU or graphics card. This was only possible in the early stages of cryptocurrency development.
Currently, cryptocurrency miners use professional cryptocurrency mining equipment, usually worth over several dozen thousand zlotys. We haven't even mentioned the enormous cost of electricity that is necessary for the operation of cryptocurrency miners.
Digging on your own is therefore very expensive and hardly anyone can afford to buy such expensive equipment that would be effective.
The situation is not improved by the fact of very expensive and inaccessible graphics cards.
Cloud computing is one of the fastest growing trends, it gives access to all types of computing services such as storage, databases, servers and software. For computers, smartphones or tablets for cloud mining, you only need to be connected to the Internet when ordering services.
Basically Cloud mining is about investing certain resources in companies that own mining equipment (ie excavators). The company calculates how much hashing energy users can get from the investment and pays the equivalent of a specified amount of BTC. It also means that the user's investment in the purchase of mining rights is to maintain the equipment, cover the mining costs and service technicians.
The amount of user investment depends on the contract they choose, as cloud mining companies offer a variety of options that can meet the needs and capabilities of almost all potential stakeholders.