Since Bitcoin made headlines, more and more people have started to delve into the mining industry. Not that it has been easy, since mining equipment is so costly, they negate any profit in the process. However, this also led to the rise of alternative forms of mining that took the public by storm.
Today, various websites allow the regular man to enter the world of mining. These websites take care of the equipment and technical hassle for you in return for some investment. When they have mined some bitcoin, they give you a portion proportional to your investment. Simple and easy.
What actually happens is that when you invest in a mining company, you are actually giving that company some computational power to solve the complicated algorithm of Bitcoin’s blockchain. This allows the company to keep its network functional. In return for this power, you are awarded bitcoins as compensation.
The complication with regular mining
Of course, everything is not as easy as it looks. Even with remote mining, the cost of giving the computational power to the company weighs down. When you use your computer to mine, it still eats more electricity than you can earn in bitcoins. This is because the algorithms have become so complicated, it takes more time and effort to mine them.
You can resolve this problem by buying computers that are specially designed to mine i.e. they have an unusually low power consumption rate. However, these computers are costly and you can not be sure how long they will last.
This is where cloud mining steps to your rescue. Without making any heavy investment, you can start mining using the cloud. Here, instead of using your computer, you use the mining company’s computer based in the clouds. This means the computer you will be using will be remotely connected to you through the cloud services.
How to start
To start, you need to have a Bitcoin wallet to receive crypto-currencies. Then choose your mining company and invest in it. Different companies offer different rates for hashing power, but it’s better to be on the safer side by choosing big companies since there is a lot of fraud around in the industry.
Once you have started mining, you will receive the number of bitcoins you have mined every day, in your wallet.