What is mining?
Crypocurrency Mining is an essential part for blockchain technology and is considered the backbone of it. It is resposible for security and synchronization in a decentralized network. Each transaction needs to be verified and confirmed by a miner. A miner is basically a computer that is connected to the blockchain network and solves formulas in order to confirm the transactions. For this verification process, each miner in the network gets rewarded.
Is mining cryptocurrencies profitable?
For the verification process of transactions in the blockchain, miners get rewarded with the underlying currency of the network (Bitcoin, Dash, Ethereum etc.). To perform this action, Miners invest money to be able to pay for the required hardware as well as the maintenance. Since the power consumption of mining hardware is very high, the electricity costs in most countries makes it hard for individuals to sustain a profitable mining operation.
In order to minimize these costs and maximize return for miners, cloud mining companies have emerged that are located in countries where electricity costs are low (such as China or Iceland) and buy mining equipment in big quantities. They then rent out shares of their hardware to individuals.
Which Cloud Mining Operators to chose?
While there has been some doubts surrounding mining companies, the growth over the last years and the current size of the mining ecosystem shows, that this business is profitiable. If one wants to join and invest, there are currently a big variety of options. We have compared the most important ones for you and monitor their performance on a daily basis.
Cloud Mining Operators