Advantages and disadvantages of cloud mining

Advantages and disadvantages of cloud mining

The advantages of cloud mining include the following:

• There is no need to spend money on your own equipment and build the farm yourself;

• The cloud service takes care of equipment maintenance. This includes everything: replacement of components, repair, installation of cooling, etc.;

• The entire mining process is also controlled by the cloud service specialists;

• The farm does not take away the living space and does not create discomfort due to the high noise level during operation; the remote farm works in a 24/7 mode. This process does not depend on the stability of electricity or Internet connection, which are available to the miner;

• There is no need to regularly pay bills for the electricity that the farm consumes;

• If you have a small budget, it is easier to rent power than to buy equipment yourself;

• Many reliable and secure cloud mining services have already been launched. Including in those regions where they are regulated by law;

• It is possible to predict the likely profit, because the contract involves a fixed hash rate. But it should be borne in mind that other factors also affect the final income;

• There are no limits on the use of cloud mining services, one person can sign contracts with several companies at once;

• Most projects allow you to mine different cryptocurrencies. This allows hedging risks associated with falling rates;

• Opportunity to participate in referral programs. Everyone can invite new clients and get profit for it, even without own investments;

• It is possible to choose short-term and long-term contracts.

Cloud mining has its own disadvantages, which are also important to consider before investing :

• There are a large number of fraudulent projects and pyramid schemes that call themselves cloud mining services;

• Most companies do not provide full reports and statistics to miners. It is impossible to know the real profitability of other people’s farm;

• Unscrupulous companies often mislead customers. For example, they promise a high profit — up to 1000% per annum. In fact, earnings are much lower;

• Cloud services are constantly subjected to hacker attacks. In such situations, the safety of client funds depends on the reliability of the company;

• If the value of the coin collapses, the contract will not pay off;

• There is a dependence on the growth of mining complexity. The company can stop the operation of the farm because of this;

• It is not always possible to switch to mining another currency, you have to wait for the end of the contract. This problem is also exacerbated in periods of decline of the mined coin;

• Limited choice of contracts — many services offer 3–4 tariffs. Each case hash rates, mining algorithms and validity periods are set;

• No physical assets, as in the case of your own farm. The user invests in the rental of virtual power;

• Rented equipment does not belong to the miner. He can not dispose of it at his discretion;

• Limited choice of coins. Mainly miners are offered to mine popular digital assets: BTC, ETH, ETC, LTC and others.

With these shortcomings in mind, the HashMix team has found revolutionary solutions, which we will cover in the next article!