CLOUD MINING INDUSTRIES
Cloud mining is the process of mining bitcoin utilizing a remote datacentres with shared processing power. This type of mining enables users to mine bitcoin or alternative cryptocurrencies without managing the hardware. The mining rigs are housed and maintained in facilities owned by mining companies and the customers simply needs to register and purchase mining contracts or shares. Since cloud mining is provided as a service, there is generally some maintenance cost.
However, there are certain risks involved with cloud mining that investors need to know and understand before purchasing a mining contract.
Reasons to engage in cloud mining:
keeps your home and environment cool and calm (Ventilation problems with hot equipment.): Mining rigs need cooling due to the working process of mining, the hardware miner gets heated and needs air-conditioning and fans for cooling. So purchasing a cloud mining contract will reduce the noise and heat.
No added electrical costs: Mining rigs and mining hardware need a lot of elctrical power to keep it running, and also air conditioning electrical cost. For areas where elctrical bills are not costly, home mining would be profitable.. Else, more than 50% profit from hardware mining would be spent on elctricity bills. So for this purpose, it is more profitable to purchase a mining contract and leave the rest of the electrical and mining cost to the mining companies.
Reduces your chances of loss when mining eventually becomes less profitable or cease to yeild profit.
Risk involved in cloud mining:
Risk of fraud: This is the biggest risk involved in cloud mining. Reason been that one day, these companies might just foreclose with all your investments still in their system. This is the major reason it is always advised to invest only what you can afford to lose. This is not a get rich scheme, but if you are a schema you would in no doubt get rich with this method.
Contractual warnings that mining operations may cease depending on the price of bitcoin: This often occurs in mining industries especially when there is a negative fluctuation in price of the cryptocurrency been mined by the cloud mining companies, they would sometimes urge their investors to hold their investments and not make withdrawals, because in such events, investors would want to salvage whatever they have made from their investment even when they are running on loss. So, to prevent the investors from crashing the money flow in the system, the companies most times would block access to their servers, to avoid max withdrawal.
Lack of control and flexibility: Due to the private nature of these cloud mining industries, the government and the public have no control over these companies. The government can only implement policies to try to regulate and control the activities going on in these industries but the outcome is going to be of minimal effect.
#Note: Most fraudulent HYIP organisation/ Ponzi schemers have adopted the form of cloud mining companies and are using this scheme to scam and defraud investors off their investments making mining risky. For me, I would strongly advise you buy bitcoin instead or if you insist on mining, that you just purchase a good ASIC hardware miner with good hash power then connect to a non-congested mining pool and mine securely from home. But for the sake of those who still want mine using the this method, I only recommend these sites.