Can You Make Money With Bitcoin Cloud Mining? Is It Worth Investing?

Bitcoin price has just topped $1,000 following a booming in 2016. If you are unsure where you should invest in Bitcoin, this is the proof where Bitcoin has a lot of potential now and in a long run. If you are totally new to Bitcoin, you have not missed the opportunity of making money with it. One way to make money with Bitcoin is cloud mining. When Bitcoin was first introduced in 2013, you could mine Bitcoins easily at home and make a good income from it. With the increasing difficulty today, you could opt for cloud mining. However, the question is can you make money with Bitcoin cloud mining? Is it worth investing? Read on and find out more.

Can You Make Money With Bitcoin Cloud Mining Is It Worth Investing


Why Bitcoin Mining as a Hobbyist Is Not Feasible?

Bitcoin mining as a hobbyist at home has several factors affecting the profitability of Bitcoin mining.

  • Hardware cost is high;
  • Electricity cost is significant as it requires more computational power.

In some countries, it is not at all feasible to mine Bitcoin due to high electricity cost.  As the price of Bitcoin increases, the number of people who can make a profit mining increases. That promotes more participation in securing the network, which results in a need for a difficulty increase. It is then a good idea to outsource your mining to somewhere where the electricity costs are much lower as they are in America, for example.

If you want to invest in Bitcoin mining without the hassle of managing your own hardware, there is an alternative. You could ship you hardware to a co-location service for hardware miners such as Hasplex. They will provide setup, monitoring, power and cooling for a contracted rate.

Even better, you could opt for cloud mining. If you are not technically minded, don’t want to run your own software and hardware, cloud mining is definitely a better option to make money with Bitcoin.


Can You Make Money With Bitcoin Cloud Mining? Is It Worth Investing?

For those who are not familiar with this terminology, Bitcoin cloud mining refers to the process of Bitcoin mining using the shared processing power of a pool of Bitcoin miners at a remote data center (Leased hashing power). Instead of running your own physical bitcoin mining hardware on your premises, you pay for Bitcoin mining power provided by a Bitcoin bitcoin cloud mining company.

Normally, miner investors purchase contracts (or hashing power) from the cloud mining provider in the form of Megahash/ second or Gigahash/ second. The data center will host the miner on your behalf and do the mining based on your hash power you sign up for.

However, the big question mark is whether you can make a good income with Bitcoin cloud mining? Is it worth investing in cloud mining?

The answer is hard to answer as Bitcoin mining profitability depends on several factors:-

  • Bitcoin prices;
  • Mining difficulty;
  • Competition.

For those who invested a few years back, they probably have made some good money from cloud mining as the Bitcoin price continuing its upward trend. Bitcoin has just topped $1,000 early 2017 in January and it is predicted that it will continue in a long run.

If we look at the cloud mining contracts from companies such as Genesis Mining, it appears Bitcoin mining has a decent ROI at the time of writing. That is partially due to the higher Bitcoin bitcoin price, which offers miners increased rewards from their effort. Cloud mining contracts, on the other hand, remain at virtually the same price.

Can You Make Money With Bitcoin Cloud Mining Is It Worth Investing

Is It Better to Just Buy Bitcoin or Invest in Bitcoin Cloud Mining?

Bitcoin mining becomes unprofitable when the cost of running your cloud mining is more than the amount of Bitcoin you are mining, and it would be more economical to simply buy Bitcoin .

It is always difficult to accurately predict and calculate the profit you will get for mining Bitcoin over the long term. The main reason for this is the ever increasing Bitcoin difficulty which itself is influenced by the ever expanding and contracting Hash rate of the Bitcoin mining network.

Hence, do research and diversify your investment in both.

Are All Bitcoin Cloud Mining Online Legitimate?

The answer is no. There are way too many high yield investment programs (HYIP) on the internet that claim themselves a legitimate cloud mining company.

Those cloud mining companies that offer multi-tier referral programs are most likely to be HYIP scams. HYIP normally promises unsustainably high ROI by paying older investors with the money injected by the new investors. Read How to Invest Online Without Being Scammed.

Can You Make Money With Bitcoin Cloud Mining? Is It Worth Investing?


What Do You Recommend If I Want to Start Investing in Cloud Mining?

Genesis Mining, it is the largest and most trusted cloud mining provider on the market. GM is transparent in their fees, costs, and hardware.

Do I know the people who operate the mine? Are they forthcoming with their identities? A classic sign that you’ve stumbled onto a scam is that the operators go to extreme lengths to conceal their identities. As for GM, we know who they are.

Can You Make Money With Bitcoin Cloud Mining? Is It Worth Investing?

What Does Genesis Mining Offer?

Genesis Mining has various investment options readily available for customers. They offer lifetime Bitcoin mining contracts (slow and steady profits), 1-year Ethereum and Zcash mining contacts, and 2-year X11 mining contracts.

In each of these mining contracts, they are further divided into three different sub-contracts depending on the computing power.

  • Lifetime Bitcoin mining, they offer $30 Gold (200GH/s), $350 Platinum (2500GH/s), and $1950 Diamond (15,000GH/s).
  • Zcash 1-year mining, they offer $29 Starter (3.12 H/s), $289 Advanced (31.2 H/s), and $2699 Professional (312 H/s).
  • Ethereum 1-year mining, they offer $33 Small (1 MH/s), $930 Medium (30 MH/s), and $2900 Large (100 MH/s).
  • X11 2-year mining, they offer $30 Gemini (5 MH/s), $500 Ferox (100 MH/s), and $2250 Graviton (500 MH/s).

Can You Make Money With Bitcoin Cloud Mining? Is It Worth Investing?

When you deal with cloud mining you rent out GH/s or TH/s, which measure how much computing power you will be able to mine with.

Being a customer-oriented cloud mining provider, they strive to ensure that you get a fulfilling service. I am so far very happy with Genesis Mining and I have strong confident in them.

Check out their Bitcoin Mining Farm in Iceland in the short clip below.

Get 3.0 % Discount When You Purchase HashPower from Genesis Mining!

Enter this code: sqvhtT at your order and you’ll get 3.0% off !

What Is Genesis Mining Read This Review Before You Invest


Conclusion

You can make money with Bitcoin cloud mining if you do proper study and research. Just like any other investments, No one can guarantee that you’ll make money from investments you make. Bitcoin cloud mining is worth investing as it probably allows you to earn more interest than the money in savings that usually less than 1%.

Summary
Article Name
Can You Make Money With Bitcoin Cloud Mining? Is It Worth Investing?
Description
With the increasing mining difficulty, cloud mining could be ideal. However, can you make money with Bitcoin cloud mining? Is it worth investing?
Author

Alex Y

Alex is the owner of Managing Your Finance. He helps newbies start their own online businesses. Sign up for his 7-Day Free training course and learn how to start making a sustainable income online and quit your 9-to-5 job.

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2 Responses

  1. MattyB says:

    Very interesting Post about bitcoin mining. I have used bitcoin, but I am not sure what the “mining” part is. Can you elaborate on what mining is and hashing? I can see how using cloud mining would be a different approach since you are outsourcing some of the hardware to a middle man. That makes a lot of sense. I think that my preference would be to invest in bitcoin by purchasing low and selling high. But, with prices at $1,000 I am not sure if they will go higher. I guess no one knows that or else they would be billionaires already.

    How does computer power or computation come into play when it comes to mining bitcoin? Thanks for answering.

    -Matt B.

    • Alex Y says:

      Hi Matt.

      Just like every consumer in the world, you and me use bitcoin as electronic cash for transaction. People are sending bitcoins to each other over the bitcoin network all the time, but unless someone keeps a record of all these transactions, no-one would be able to keep track of who had paid what. The bitcoin network deals with this by collecting all of the transactions made during a set period into a list, called a block. It’s the miners’ job to confirm those transactions, and write them into a general ledger.

      This general ledger is a long list of blocks, known as the ‘blockchain’. When a block of transactions is created, miners put it through a process. They take the information in the block, and apply a mathematical formula to it, turning it into something else. That something else is a far shorter, seemingly random sequence of letters and numbers known as a hash. This hash is stored along with the block, at the end of the blockchain at that point in time.

      The problem is that it’s very easy to produce a hash from a collection of data. Computers are really good at this. The bitcoin network has to make it more difficult, otherwise everyone would be hashing hundreds of transaction blocks each second, and all of the bitcoins would be mined in minutes. The bitcoin protocol deliberately makes it more difficult, by introducing something called ‘proof of work’.

      To find a hash every ten minutes, the Bitcoin hash rate needs to be insanely large. Currently, the miners on the Bitcoin network are doing about 25 million gigahashes per second. That is, every second about 25,000,000,000,000,000 blocks gets hashed. It is estimated that the total hardware used for Bitcoin mining cost tens of millions of dollars and uses as much power as the country of Cambodia.

      Alex

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