Today, let’s briefly examine what is cloud-based mining and not whether it is ballpoint? And so, a bit of theory.
Mining itself is a process of obtaining crypto-currencies, which is associated with the need to use high-tech equipment, as well as having a significant initial capital (these requirements are connected with the fact that it is very expensive to build a farm for the extraction of virtual money). That’s why those people who are already good at making crypto-currencies, suggest that newcomers do not take risks, trying to achieve something in this direction independently, but simply entrust money to professionals by investing them in a working draft for mining. At the same time, it is stable to receive a certain percentage of profit, proportional to the size of the investment.
One of the most popular services for cloud mining — https://hashflare.io/
Cloud mining at Hashflare in 2018
This service is one of the first and, perhaps, the most reliable of all sites of cloud mining. For all time of its existence, the service has never delayed payments to depositors, timely charging interest, based on the share ownership of the company’s production facilities. In this case, it is very important to trust trusted sites, since many «cloud mining services» are the simplest financial pyramids, where the payment of dividends to the first registered players is due to the deposits of the latter, and there is no capital investment in prospective projects in this case. However, in the work of Hashflare there are several nuances, a little later I will return to them.
How does cloud mining work?
In general, the principle of cloud-mining can be characterized as follows:
- Attraction of borrowed funds of investors (investors) — even you can go and throw your or Mamkins 100 bucks and you will already be mined))
- Purchase of equipment necessary for mining — special video cards with high power;
- Extraction of crypto-currencies with their subsequent realization and profit making;
- The distribution of profits is proportional to the size of the investment.
How much can you earn on cloud mining?
This question can not be answered by definition, since it is rhetorical. Most accurately, the situation can be characterized as follows: the amount of income received is proportional to the investment in the creation of production capacities of the enterprise (miners), and in addition, it also depends on the price of the crypto currency, over which the latter is realized. It is logical to assume that in case of a drop in the rate of bitcoin (or any other crypto currency), the profit will be less — even if the investor has invested heavily. On the contrary, even a small investment will bring a significant profit in the event that the crypto currency will be sold «at the peak of popularity».
It should be understood that the business of crypto currency is very risky.