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BlossomPeeler
Nickel Bitcoiner
Nickel Bitcoiner
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Joined: Fri May 07, 2021 10:21 am

Why Choose Cloud Mining currently?

Wed May 12, 2021 11:31 am

It’s hard to believe cryptocurrency has been around for more than a decade. Even more surprising is the development of cryptocurrency and the number of millionaires it creates. We’ve all heard stories about people who forgot to buy bitcoin in the early days and then realized they were sitting on a lot of money. Many people will tell you that the era of easy money making with cryptocurrency is over, but the fact is, it’s far from the truth. Cryptocurrency and bitcoin are still in the early stage of adoption, and there are still many opportunities to make huge profits from this emerging technology.

One of the main ways people first participated in and benefited from encrypting ecosystems was by mining coins. Mining is the act of lending the processing power of a computer to the cryptocurrency infrastructure. Computers are used to protect systems and verify people’s transactions. In return, the miners will receive cryptocurrency. Initially, mining was quite easy and could be profitable on any computer or laptop. As time goes on, the competition in the mining industry becomes more and more fierce, and the mining process becomes more and more difficult. Nowadays, cryptocurrency mining is usually reserved for large enterprise projects, which use data centers full of specialized computers to complete tasks. Nowadays, profitable mining in China is no longer a viable option.

If you read this, then I assume you are interested in the current cryptocurrency phenomenon and the opportunities it presents as a potential investment asset class. In this article, I won’t discuss the underlying technology behind blockchain (or entanglement) and how it connects to cryptocurrency in various forms. I will pay close attention to the comparison of investments through cloud mining services and direct purchases through various cryptocurrency exchanges (i.e. coinbase).
Buying cryptocurrency directly or subscribing to a service that can provide me with passwords is a question I was thinking about a few months ago. Although I have received different suggestions/ideas from friends who have participated in cryptocurrency, except for anecdotes and even articles with data, I have not found any conclusive suggestions to push me to one or another.



Supply constraints
If the mining time of a block is relatively stable, why does the supply of bitcoin grow at a slow rate? The answer is because bitcoin is “halved”
The first bitcoin block, known as the “Genesis block”, produced 50 bitcoins. But for every 210000 blocks mined (about every four years), the return is halved. The first halving took place on November 28, 2012. The second was on July 9, 2016. The third is on May 11, 2020. Today, each piece produces only 6.25 bitcoins.
The largest supply of bitcoin ever was 21 million. This means that half of the total potential supply is generated in the first four years after bitcoin’s launch. Before the next halving in 2024, 93.75% of the total supply will be mined. This table shows this pattern very well.
The impact of these cuts on supply may surprise you. By 2044, 99.9% of bitcoin will be in circulation, leaving only 20508 for mining. Within four years from 2080, only 40 bitcoins will be mined. Before the end of this century, less than one bitcoin will be mined every year. Eventually, the last bitcoin will be mined in 2140.
Therefore, although the price of bitcoin is close to the highest level in history, and the computing power used to mine bitcoin is also at the highest level in history, the supply of bitcoin is growing at the slowest speed in history for two reasons
Bitcoin protocol successfully adjusts the difficulty of mining a bitcoin. Although the computing power increases exponentially, bitcoin mines a bitcoin every 10 minutes on average. The reward will be halved for every 210000 bitcoins.
And now is the time to see commodity dynamics work.



Profitability
To achieve greater success, miners join so-called pools, where they combine their computing power and then receive a bonus from the blocks that have been successfully mined. The best bitcoin mining devices can cost as much as $3000, while older models can cost hundreds of dollars. Whatsminer m30s + + has a hash rate of 112 trillion per second. Assuming a conservative electricity cost of $0.07 per kilowatt hour, we can break even at the price of $7420 in bitcoin. Now it looks like a good deal, but remember, last April bitcoin was less than $7000.
Old models like the antminer S9, with a hash rate of only 13.5 trillion per second, can break even on $24730 bitcoin. When bitcoin mining takes less computing power and each block generates 50 bitcoins, this hash rate is acceptable. And it has been profitable recently. But if computing power fills the market and the difficulty grows faster than the price of bitcoin, then it may be a losing effort. This has happened several times before, when the price of bitcoin plummeted or the difficulty rose to the point where once profitable drilling platforms became unprofitable.
In the oil industry, if the break even price of each well is too close to the current oil price, new wells will not be drilled. That’s why many oil giants have abandoned businesses that make money at $55 or more. That’s why oil production stopped when oil prices fell below $40 between March and November last year.
Bitcoin is similar. If the profit and loss balance is too close to the current price, it will not buy new drilling platforms, and the miners will not mine. Even the best drilling platform can only earn about $17.50 a day at $30000 bitcoin (assuming the electricity charge is $0.07 per kilowatt hour). At $3000 per rig, it takes 170 days to break even. If bitcoin falls to $15000, it will take a year. If the network is full of computing power and becomes more difficult, you may not be lucky at all.


The difficulty of cloud mining
In most commodity-dependent industries, supply begins to increase as the price of the underlying commodity rises. When the price of gold or copper rises, the miners will respond by increasing production. It’s the same with oil. Higher supply will eventually lead to lower prices and repeat the cycle. But something strange is happening to bitcoin: its price is close to an all-time high, but its supply is growing at the slowest rate ever. There are several reasons for this. In the early days, the problem bitcoin miners had to solve was relatively simple, and they didn’t need too much hash function. A dirty old central processing unit (CPU) can solve this problem. But as time goes on, the puzzle becomes more and more difficult. This is because the founder of bitcoin decided that it would take about 10 minutes for each bitcoin to be mined to control the supply. With the surge of computing power, the difficulty also increases. The difficulty is adjusted every 2016 block – approximately every two weeks if it takes 10 minutes to mine a block. In theory, you can use the average hash rate and the time of each block of the first 2016 blocks to estimate the next difficulty number. But it’s not a perfect science (because sometimes a block can be mined in 10 minutes just by luck).
In January 2009, the network hash rate was 4.21 million times per second and the diffully was 1.0. Today, the difficulty of the network is close to 20 trillion times, and the hash rate is about 150 million terahashes per second (th / s). One terahash is equal to 1 trillion times. This is one of the reasons for the surge in demand for NVIDIA’s top-level graphics processing unit (GPU).
So part of our answer is that it takes twice as much computing power to dig out a bitcoin as it did 12 years ago, even though it takes about 10 minutes to dig out a bitcoin.
If you have the knowledge of cloud mining and general exchange trading, please feel free to skip the explanation section.


Trading on the exchange
It’s a simple explanation. Buying and selling cryptocurrency through an exchange, such as a stock exchange, is like buying stocks. You can buy and sell according to the market price, or set a price limit order to automatically generate a sales order when the price reaches a certain threshold. Unlike the stock market, because these exchanges are hosted online,
For example, bitcoin is currently worth $15K. Now I can buy or sell some bitcoin at this price, or set a dollar amount, so that if / when bitcoin reaches this price, the exchange will automatically buy or sell it for me. If I set the threshold for buying bitcoin at $14K, the exchange will wait until the price of bitcoin is $14K before placing an order. If bitcoin is less than $14K, orders will remain open or incomplete. Open orders can be cancelled at any time.
Why do people choose to buy or sell cryptocurrency through exchanges? Just like buying stocks, you are guessing whether the value of coins will increase or decrease. Sometimes you buy shares in the network and can provide technical guidance on how they should move forward. Sometimes, coins are needed to get the services provided by the company.
Why do cloud mining companies choose countries with low electricity prices?
Fundamentally, to understand cloud mining, you need to understand some of the technologies behind cryptocurrency. A very basic conclusion is that when the blockchain network behind the currency borrows the computing power of the system to verify transactions or carry out any business it needs, most cryptocurrencies will be mined out. As a kind of payment to the users who provide the system to the network, they get cryptocurrency (this is a super general explanation of how it works, please correct me at any time in the comments below). Since everyone wants cryptocurrency now, some companies have created a service that allows people to buy computing power from them and allocate it to mining cryptocurrency. In this way, you don’t have to connect your computer to the network, and you don’t have to set up your own hardware to mine cryptocurrency. In addition, in most countries, the cost of electricity to keep the system running 24 / 7 makes the whole effort unprofitable, which is why companies selling services are usually based in countries with lower electricity prices.
When you subscribe to services from these cloud mining services, you are buying computing power and lending it to the cryptocurrency network. You can buy more or less computing power.
Why do people choose to invest in cloud mining? This may be because you don’t feel like you need to actively monitor it. It will provide the same amount of power to the network every day, so you don’t have to worry about falling prices. It may also feel like you’re locking in the value of a coin for a specific price (more explanation later). Maybe if it’s an open contract, you’ll feel like you’re investing in something that might last forever.
Recommended by cloud mining company
This is a comparison between some common cloud mining companies, and some reliable companies providing cloud mining services.



MinerFarm
Minerfarm is one of the well-known free cloud mining websites. It is known for being trustworthy, approachable, and easy to use.
Minerfarm works by offering you 100 GH/s free of charge, just by registering on their website. If that seems too low, you can always upgrade your plan and earn more. It is convenient and fast to withdraw money, and also provides customer support.
Join MinerFarm Now!




MVU Cloud Mining
MVU cloud mining offers four different cloud mining plans. What is more attractive about MVU cloud mining is that you can choose short-term or long-term contracts. You can invest in short-term contracts when the interest rate of bitcoin or Ethereum is higher to get higher returns. MVU cloud mining has a commission plan, which allows users to earn a 5% commission by inviting friends to place orders.
Join MVU Cloud Mining Now!


Multimining
While paying for cloud mining providers, Multimining has a free version of cloud mining. They offer you 30 GH / s as a lifelong program, just sign up to their website. The cool thing about multimedia is that they also have a recommender – if you bring more people to their website, you start to earn more encryption fees. The company is an established free cloud mining site, so check it out!
Join Multimining Now!


Before subscribing to the cloud mining service, I did some financial modeling to see if it makes sense. I do it for bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Monero (XmR). I’ll show you the monero model, because this is my final subscription. I looked at: how much cryptocurrency will be mined during the contract period to see the available packages, and the revenue and profit will be determined according to the hash rate of the purchase and the length of time required to recover the cost of the subscription service.

nowadays I USE mvu .com u can choose what you like. you can use the link to register mvu (https://b.link/tgtcr6)

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