What is Bitcoin Cloud Mining?
Bitcoin Cloud mining or cloud hashing allows users to purchase hashing power hosted in data centers.
Hashflare.io and Genesis-Mining.com are the two biggest operators of bitcoin mining that have been offering contracts for many years.
Bitcoin cloud mining allows people to earn Bitcoins in the absense of bitcoin mining hardware, bitcoin mining software, electricity, bandwidth or other offline issues.
Bitcoin cloud mining is sometimes called cloud hashing that allows users to buy the output of Bitcoin mining power from Bitcoin mining hardware placed in remote data centers.
Then all Bitcoin mining is done remotely in the cloud. This enables the owners to not deal with any of the hassles usually encountered when mining bitcoins such as electricity, hosting issues, heat, installation or upkeep trouble.
What are Bitcoin Cloud Mining Advantages?
No excess heat to deal with
Quiet because of no constantly humming fans
No electricity costs
No bitcoin mining equipment to sell when bitcoin mining is no longer profitable
No ventilation problems with hot equipment
No preordered bitcoin mining hardware that may not be delivered on time by bitcoin mining equipment suppliers
What are Bitcoin Cloud Mining Disadvantages?
FRAUD!!!
Unverifiable or otherwise shady Bitcoin cloud mining operations
No fun! If you like building your own Bitcoin hashing systems.
Lower profits – Bitcoin cloud mining services or operators have expenses
Bitcoin mining contracts may have the ability to cease operations or payouts in the contracts if the Bitcoin price is too low
Lack of possession of the Bitcoin mining hardware
Lack of ability to change the Bitcoin mining software
Best Bitcoin Cloud Hashing Services
Being listed in this section is NOT an endorsement of these services and is to serve merely as a Bitcoin cloud mining comparison. There have been a tremendous amount of Bitcoin cloud mining scams.
Hashflare.io: Hashflare offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while automatic payouts are still in BTC. Customers must purchase at least 10 GH/s.
Genesis-Mining.com: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available.
Hashing24.com: Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.
Best Bitcoin Cloud Mining Contracts and Comparisons
Bitcoin cloud mining contracts are usually sold for bitcoins on a per hash basis for a particular period of time and there are several factors that impact Bitcoin cloud mining contract profitability.
For example, Pay per GHash/s would be 0.0012 BTC / GHs for a 24 month contract.
Contracts vary from hourly to multiple years. The major factor that is unknown to both parties is the Bitcoin network difficulty and it drastically determines the profitability of the bitcoin cloud hashing contracts.
Bitcoin network difficulty is a measure of how difficult it is to find a hash below a given target.
The Bitcoin network has a global block difficulty. Valid blocks must have a hash below this target. Bitcoin mining pools also have a pool-specific share difficulty setting a lower limit for shares.
The Bitcoin network difficulty changes roughly every two weeks or 2,016 blocks.
Best Litecoin Cloud Mining Services and Comparisons
There are limited options for Litecoin cloud mining contracts. If nothing on the list below meets your needs, you can buy Bitcoin cloud mining contracts (listed above) and simply convert the bitcoins you earn to litecoin.
Hashflare.io: Hashflare offers scrypt mining contracts with a minimum purchase of 1 MH/s.
Genesis-Mining.com: Genesis Mining offers Litecoin cloud mining contracts.
Best Dash Cloud Mining Services and Comparisons
There are limited options for Dash cloud mining contracts. If nothing on the list below meets your needs, you can buy Bitcoin cloud mining contracts (listed above) and simply convert the bitcoins you earn to Dash.
Genesis-Mining.com: Genesis Mining is the largest X11 cloud mining provider. Genesis Mining offers three Dash X11 cloud mining plans that are reasonably priced.
Best Ether Cloud Mining Services and Comparisons
There are limited options for Ether cloud mining contracts. If nothing on the list below meets your needs, you can buy Bitcoin cloud mining contracts (listed above) and simply convert the bitcoins you earn to ether.
Hashflare.io: Hashflare is a large Ether cloud mining provider with reasonably priced Ethereum cloud mining contracts.
Genesis-Mining.com: Genesis Mining is the largest Ether cloud mining provider. Ethereum cloud mining contracts are reasonably priced
This Ethereum cloud mining guide will show you how to mine Ethereum using Amazon cloud servers.
Bitcoin Cloud Mining Scams
There have been a tremendous amount of Bitcoin cloud mining scams like the possible $500,000 Bitcoin cloud mining ponzi scheme that was uncovered. Potential buyers should be extremely guarded and careful before purchasing any bitcoin mining contracts. Services to beware of:
Scrypt.cc Review: Scrypt.cc allows purchase of KHS in a matter of seconds, start mining right away and even be able to trade your KHS in real time with prices based on supply and demand! All KHashes are safely stored and maintained in 2 secured data-centres.
PB Mining Review: Claims to operate Bitcoin mining ASIC hardware. When customers buy a bitcoin mining contract then they will begin earning Bitcoins instantly. At Piggyback Mining, they cover the electricity costs and all Bitcoin mining pool fees. The Bitcoin mining contract is 100% insured because they want customers to succeed.
Bitcoin Cloud Services (BCS) Review: Appears to have been a $500,000 Ponzi scam fraud.
Zeushash Review: Appears to have halted payouts.
Bitminer.io Review: Based on user reports they appear to have halted payouts.
Cryptocurrency Cloud Mining Companies
Hashflare.io: An Estonian cloud miner with SHA-256, Scrypt and Scrypt-N options and currently appears to be the best value.
Genesis-Mining.com: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider.
Hashing24.com: Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.
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Thank You!
Great post! I also test and compare all the cloudmining contracts in a google sheets file which I regularly update so everyone can have the best deal for their money at any time! I also talk about all the criteria you have to take into account when considering cloudmining. If you are interested you can find it on: https://steemit.com/cloudmining/@circularitylabs/everything-you-need-to-know-about-bitcoin-cloud-mining-comparing-genesis-mining-vs-bitcoin-pool-vs-hashflare-vs-minergate
I have genesis and hashflare accounts since April. Hashflare is way better than genesis as they pay everyday at almost same hour.... with genesis I had problems since the beginning... days with missing payouts... they pay but I don't need stress into my life so I prefer not to see a bunch of miners doing their job (genesis offers this possibility) vs sleeping well and see in the morning the payout. I could talk all day long about this 2 companies and some scams too so fell free to ask me whatever doubt you have
I realize im a bit late on all of this, but how exactly is mining profitable? I see guys spending $500 on borrowed power to mine, and their "profit" is a teeny tiny piece of a fraction of a btc......they literally spend $500 on $1.00 worth of btc.....makes no sense
Hey there,
Nice article! I made a very extensive cloudmining comparison sheet which allows you to make an estimation of future mining profits using difficulty and mining growth rates. However I am missing one important function to automate the whole calculation.
Explanation of the sheet and the missing function can be found in my latest post: http://bit.ly/2KUlVp2
I have a bounty of 25 USD in crypto of choice for the person who can tell me the function I need (+ a mention in the sheet :))! I really hope someone can help me! Thanks!