It’s hard to predict what will be the future of crypto because we constantly have new things but when it comes to mining, cloud software is the perfect opportunity. People didn’t know better when they started buying equipment at the beginning so it wasn’t a problem to have 20 GPUs running at the same time with a few large fans.
Heating up the room to the extent where you can’t be in it for half an hour and a noise so big that you can’t hear the person next to you were two beautiful things about the beginning of mining. So, some smart people decide to take it to the next step and think about the clients that don’t have proper storage or equipment to mine. This idea was to use the cloud and provide mining services to anyone that is willing to invest.
Evolution of Mining Cryptocurrency
The way it started is how it is done today with a few twists because some things have changed with blockchain technology. There are still a lot of people that have their own rigs at home that work perfectly well but that will be the problem in the future unless they join a certain pool of users to combine the hash power. Even now, it’s practically impossible to get anything because it’s harder to build a block that rewards you with a certain coin.
The perfect example is Bitcoin where miners can acquire 6.25 BTC after solving a block at the moment. This wasn’t the case 4 years ago because then they would get a 12 BTC split among all miners based on the hash power they provided. This also means that after 4 years it will go down to 3.125 BTC and it will become harder to do it.
This system isn’t bad as it may seem to some people because it provides some kind of security and a long-term strategy for miners. But, because it becomes harder, only those with larger facilities will be able to do it and make a profit. The rest will turn to cloud mining which is probably the future of mining.
How Is It Different?
The major difference is that an individual doesn’t need to invest in heavy equipment in order to produce enough hash power to make a profit. In most cases, the number of coins produced won’t be enough because the equipment is outdated and you’ll need something basically made for mining. Some of the hardware these cloud mining agencies use is made for this purpose and can produce a lot of hash power.
The reason why these facilities are considering this type of business is the cheaper electricity and better location for the equipment. This brings the expenses to the minimum and they actually can make a good profit compared to a single user.
It will take a bit of research to find the best website because some work better than others. Try reviewing a few of them or check websites like truely.com if you can’t decide on your own which one is the best. You can invest in multiple websites if you want but be careful because there are scams. It’s a safe option to choose those that are on the top 10 list instead of searching on Google.
What Types of Cloud Mining Exist?
You can divide it into two main types including host mining and leasing hash power. The hosts are companies that will provide the option where you can buy the whole rig or a single machine. But, besides paying for the hardware there will be a small fee for the storage and electricity used. They will be the ones maintaining the equipment but they also have a few benefits of their own.
Something that you will hear a lot when researching about cloud mining is hash power which represents the capacity of the equipment that handles continuous and intense operations. The advantage over the other type is that the price will be cheaper but you won’t be able to make some adjustments you could otherwise.
Another advantage that you will have is that you won’t need to pay for the fee that is calculated for maintaining the equipment. They are very similar when it comes to profits but it depends on what you are planning to do. If you want to switch between coins, use the first type, and if you want to stick to one, use the second.
What Will Change?
The changes that will happen in the near future will determine how the market will act and how much profit you will make by having a mining rig. Bitcoin has reached its pinnacle in 2021 with $69k but in 2022 it dropped to $40k meaning that in a few months a lot can change. It’s expected that new technology will be used for mining in the next couple of years which will bring new coins also.
Some people have doubts if Bitcoin and Ethereum will be the top coins for a long time because there is still a lot to discover and implement. Blockchain technology is now used in gaming and companies are becoming better at creating new methods to involve crypto in their industry. One of the best pieces of advice is to jump on the opportunity as soon as it appears because more people are starting to realize the potential of crypto.
Will There Be A Different Way?
There’s a huge chance you won’t find another way to mine crypto instead of doing it with your own rig or by hiring someone to mine for you like with cloud mining. These websites and the facilities they run will get bigger as they gain more clients which will benefit them both.
The only problem they can have is based on their location and if they are regulated. Nowadays, most of them operate in countries that don’t have any regulations when it comes to crypto. This is understandable because it’s relatively a new thing and governments still don’t know what to think of it.