Whether you own 35 bitcoins or have barely started playing the field, you’ve likely heard of crypto mining. It’s an arduous process that intends to take the “financial” out of the investment equation.
Whether you own 35 bitcoins or have barely started playing the field, you’ve likely heard of crypto mining. It’s an arduous process that intends to take the “financial” out of the investment equation.
Unfortunately, people often end up spending more time and money than what they managed to make. One simple reason for this is mining isn’t as easy as everyone likes to make it seem. It’s a lot of work on top of having super powerful hardware and lots and lots of time and energy.
Before when bitcoin wasn’t such an expensive date, mining was possible for any enthusiastic individual. All you needed was a couple of decent graphics cards and a month’s worth of electricity and you could call yourself a miner.
Then, as enthusiasts became professionals and professionals became organizations, things got a bit more complicated. Mining was so difficult and time-consuming that it eventually became a group activity. People would come together to split the check on computing power and share the rewards. They called that pool mining and then we managed to a point where it was the only way to earn crypto.
Nowadays, not even pool mining is efficient enough. For some of us, there is no time to worry about hardware or ASIC or energy bills - any of that. Cloud mining was inspired by those people and their need for convenience.
Whereas traditional mining tries to avoid the financial part of the crypto investment, cloud mining puts it back where it belongs. Instead of time and energy, you now invest money. A cloud mining user would purchase some of the operational capacity, or hashpower (H) and earn crypto proportional to what they paid.
Sounds too simple? That’s just it. The idea is to make things as easy as possible for people to passively earn crypto. How much they actually earn, however, is another story, which we’ll discuss here.
How Does Cloud Mining Work?
Every bitcoin transaction comes encoded in a 16-digit number. Miners have to guess what this number is by having their computers throw random sequences at the receipt until they get it right. Each of these attempts is a hash. A hash rate is how many hashes a miner can generate in a second. The miner who guesses the number first gets the reward for that transaction.
Ethereum uses something similar called Ethash. Other cryptocurrencies use a variety of hashes with different processing speeds. For simplicity’s sake, we’ll use bitcoin as an example.
A high-end ASIC mining rig can spit out around 14 Terahashes (TH) per second, which converts to roughly 14 trillion hashes. Sounds like a lot, but that doesn’t hold a candle next to what the bitcoin network can do. Currently, bitcoin can process one quintillion hashes per second - that’s a number with 18 zeroes. So in theory, if you can produce more hashes than that number, you’d win every transaction. But to even achieve such a feat, you’d have been better off buying every bitcoin available.
Sustaining a rig producing 14TH/s comes with a lot of heat, headache, time and a very large electricity bill. Cloud mining companies offer to endure all of that burden for you at a reasonable price.
Similar to pool mining where you can either buy additional resources for your CPU or share your own, cloud mining is all about buying hash power.
You pay for a hash rate you want and leave the rest to the miners. At the end of a certain period, you earn a portion of whatever they made based on the hashes you purchased.
How Much Money Can You Make?
This is where things get murky despite the concept of simplicity at hand.
When choosing a cloud mining service you often pick one of several plans they offer. They usually come in different hash rates, such as 100 GH/sec, 100 H/sec and so on, depending on the type of coin you want to earn.
The rate isn’t important since you can’t really change it and can only buy more of the same. What’s interesting is they sell them on yearly contracts. So if you wish to use the service, you’re obligated to pay for the whole year’s worth of mining. For an average hash rate of 100 GH/sec for bitcoin at 5 US dollars a pop, you’d be looking at roughly $1,900 for one year, including maintenance fees. Yes, they charge a fee for maintaining their own servers.
We can put this price into a simple equation to find how much profit we would make in one year.
Currently, it takes about 2.7 quadrillion hashes to produce one bitcoin. That’s 2.7 thousand trillion hashes, which equals 27,000GH.
With the package above, we’re entitled to 36,500GH so theoretically, once our contract ends, we’re sure to make 1.3 BTC.
See, now that’s an amazing deal. So why don't we see that on every single one of their ads? That’s because the reality is far from that. You’d only make 1.3BTC if the cloud mining service you’re using is the only one in the world.
Tens of thousands of miners vie for every transaction at any given time. Hundreds of companies and pools with various degrees of computing power all contend for the same rewards. When you purchase a hash rate, you’re basically weaponizing that against other competitors.
Probability plays a big role in all this as well. A much smaller miner could guess the sequence before a giant pool due to pure chance. That said, many cloud mining services end up costing their clients a lot of money and this isn’t at all uncommon.
Conclusion
All in all, if you want a truly hands-free investing experience, then cloud mining is the way to go, but don’t expect a passive income.
This isn’t a blue-chip type of investment where you can just buy once and check on it when you remember. It’s best to spend what you can afford and pretend it’s already gone because a lot of times, it might as well be.
For those with long-term goals and care more about profits rather than a relaxing experience, then avoid this kind of business at all costs.
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FAQs
The cloud mining industry generates astonishingly high revenues. It is possible to grow the amount invested in a single year with appropriate time and effort because the rate is gradually increasing. However, very few applications actually let you mine cryptocurrencies for little to no money.
Does cloud mining really pay? ›
The cloud mining of Bitcoin, Litecoin, Dogecoin, Ethereum and other cryptocurrencies is one of the most profitable sources of passive income. Based on the recommendations of our analysts, let's select a cloud mining platform that is both dependable and profitable.
Is cloud mining profitable 2023? ›
Bitcoin mining is still profitable in 2023. Bitcoin miners are currently mining around $20 million worth of Bitcoin per day. That's $600 million per month. A mining machine costs $2,000-$20,000, making it difficult for anyone but professional miners to mine.
How reliable is cloud mining? ›
Unfortunately, the cloud mining space has been rife with scams and fraudulent operations. Some companies have taken money from customers and then disappeared. It's crucial to thoroughly research and verify the legitimacy of a cloud mining company before investing money.
Is Bitcoin cloud mining still profitable? ›
Cryptocurrency mining is still profitable in 2023, but it may not be as rewarding as in the past. Cryptocurrency mining is still profitable in 2023, but it may not be as rewarding as in the past.
How long will cloud mining last? ›
A cloud mining contract can last between 30 to 50 months.
How long does it take to mine 1 Bitcoin on cloud mining? ›
How long does it take to mine one Bitcoin? It takes around 10 minutes to mine just one Bitcoin, though this is with ideal hardware and software, which isn't always affordable and only a few users can boast the luxury of. More commonly and reasonably, most users can mine a Bitcoin in 30 days.
How much does a mining rig make a day? ›
Most Bitcoin mining rigs make at least 2000 USD every day on average. Some can make up to as high as 5000 USD daily. We recommend buying more efficient and robust mining equipment to maximize your daily income from Bitcoin mining.
Is Dogecoin cloud mining profitable? ›
Is Dogecoin Mining Profitable? According to most mining calculators, Dogecoin is profitable to mine. Whattomine and other mining calculators can be used to determine how profitable it is to mine Dogecoin with various miners. Since September 2021, mining the Dogecoin has been profitable.
What is the disadvantage of cloud mining? ›
Cloud mining offers lower upfront costs, no need for specialized hardware, and no need for technical knowledge. However, it also has some disadvantages, such as the potential for scams and fraud and dependence on the cloud mining provider.
What is cloud mining?
| Name | Rating | Payout Period |
|---|
| Bitdeer | 9.2 | Within 24 hours |
| Nicehash | 9.2 | Every 4 hours |
| Kucoin | 9.1 | Daily |
| Hashing24 | 9.0 | Daily |
5 more rowsMay 12, 2023
Top 5 Crypto Miner Apps in 2023
- Crypto Miner. The popular cryptocurrency mining app Crypto Miner is accessible on both Android and iOS mobile devices. ...
- Mobile Miner. ...
- AA Miner. ...
- MinerGate. ...
- NeoNeonMiner.
Most people do not consider cloud mining to be a profitable investment opportunity because of the high costs associated with running a remote data center and the possibility of low returns on investment due to increased competition and the difficulty in mining cryptocurrencies.
What is the easiest crypto to mine? ›
Monero (XMR) is one of the easiest cryptocurrencies to mine using a home computer. Monero is a privacy-focused crypto based on the CryptoNote protocol and utilizes the RandomX hash function to create increasingly complicated mathematical equations.
Why is crypto mining not profitable anymore? ›
The biggest drawback of bitcoin mining is the cost. There's no way around it — setting up a mining operation is expensive. In the early days of bitcoin, miners could use standard computers, but as more people joined the bitcoin network, mining difficulty increased.
Can you lose money cloud mining? ›
Lose Lose Situation
The main model of legit cloud mining companies use is a “lose lose” paradigm. If Bitcoin goes up in price you'll earn less than if you just bought it. If it goes down – you won't earn anything and you'll probably lose the money you've invested.
Is cloud mining a Pyramid Scheme? ›
Some cloud mining providers even run pyramid schemes, in which early investors are paid with deposits from new investors. Knowing that this is unsustainable, the providers eventually perpetrate exit scams. Therefore, the onus is on you to carry out due diligence before opting for a given cloud mining service.
What is the minimum withdrawal for cloud mining? ›
Cloud mining allows you to buy a certain amount of hash power for the contract period. The process is to register with an email and then sign a contract to start Bitcoin mining. The minimum payout is 0.0001 BTC, and their platform ensures immediate and automatic payments.
How much does 1 Bitcoin miner make a year? ›
Crypto Mining Salary
| Annual Salary | Weekly Pay |
|---|
| Top Earners | $100,500 | $1,932 |
| 75th Percentile | $77,500 | $1,490 |
| Average | $64,161 | $1,233 |
| 25th Percentile | $48,000 | $923 |
Technically, it is not possible to mine 1 Bitcoin, especially if you are a solo miner. However, if you mine within a pool, your rewards will typically be in satoshis, which are denominations of the BTC coin that could equal 1 BTC over a period of mining.
Bitcoin Mining Reward Forecasts
| Time Frame | BTC Reward | Revenue USD* |
|---|
| Hourly | 0.00001448 | $0.45 |
| Daily | 0.00034755 | $10.80 |
| Weekly | 0.00243284 | $75.63 |
| Monthly | 0.0104 | $324.14 |
1 more rowOur Top Picks for the Best Bitcoin Mining Software of 2023
- CGMiner - Best for Experienced Miners.
- NiceHash Miner - Best for Beginners.
- BFGMiner - Best for Customization.
- Cudo Miner - Best for Different Cryptos.
- MultiMiner - Best Open-source Software.
- Kryptex Miner - Best for Automation.
1. Glencore PLC. Glencore is a British-Swiss multinational commodity trading and mining company that operates in several regions, including Africa, Asia, Australia, Europe, and North America. The company produces commodities such as copper, cobalt, zinc, nickel, and coal.
What is the most profitable mining website? ›
Top 8 Cloud Mining Sites for Profitable Bitcoin Mining – Up to 200% Revenue
- The latest and better method of cryptocurrency mining is cloud mining. ...
- 1- HappyMiner (9.7 points)
- 2- Binance (9.5 points)
- 3- Genisis Mining (9.4 points)
- 4- Nice Hash (9.4 points)
- happyminer.us – One of the most popular cloud mining site in 2023.
Monthly Price Per kW to Price Per Mining Rig
Typically, prices range from $80-$140 per kW per month. This includes the space, power, internet, cooling and security. You will want to get your cost per kW per month. Next, you will want to calculate your total power demand.
What is a typical day for a miner? ›
Each miner had his own section of land in which to dig for gold, called his claim. Gold diggers spent 12 to 16 hours a day digging, scraping, hauling, and washing dirt and gravel. The work was repetitive and backbreaking. Gold washers, as they were sometimes called, used three main methods to find gold.
How long do miners work a day? ›
Down in a coal mine, there's no such thing as a "nine to five." Miners usually work shifts, and they can be on for 10 days in a row. Some head down before sunrise and return anywhere from seven to 12 hours later.
Which crypto mining gives highest return? ›
Best Crypto To Mine
- Bitcoin.
- Ethereum.
- Ravencoin.
- LiteCoin.
- ECOS.
- Vertcoin.
- ZCash.
Mining Bitcoin is often seen as the most profitable crypto activity due to the potential returns; however, ASIC mining of Bitcoin is much more intensive than mining with fiat currencies, as the required computing power, energy and processing power is drastically higher than that of regular miners.
What is the most profitable mineable cryptocurrency? ›
Bitcoin – Most profitable cryptocurrency to mine. Ethereum – Best for smart contracts and corporate miners. Monero – Best for beginner miners. Ravencoin – Best for low investment mining.
Regardless of the scale you're mining at, you'll pay Income Tax on new coins you receive through mining. You'll pay Income Tax based on the fair market value of the coin in USD on the day you received it.
What are 3 cons of mining? ›
Some examples of the negative environmental impacts of mining include climate change, deforestation/habitat destruction, pollution, soil erosion, human-wildlife conflict, and the loss of biodiversity.
Is cloud mining bad for my phone? ›
Crypto Mining Will Damage Your Phone
Crypto mining is an intense process and requires a lot of electricity. So, if you're using a mining app on your phone while using it for day-to-day activities, you may notice that the overall performance speeds are lacking.
How to get 1 Bitcoin for free? ›
Here are ways to get bitcoin for free:
- Airdrops.
- Brave Browser.
- Cloud mining.
- CoinMarketCap.
- Faucets.
- Bounty.
- Staking.
The MicroBT Whatsminer M56S has a hash rate of 212 terahashes per second, making it one of the most powerful Bitcoin miners on the market.
What is the most profitable miner in 2023? ›
The Top 6 Most Profitable ASIC Bitcoin Miners on the Market in 2023. The top bitcoin mining rig is the Bitmain Antminer S19 XP Hydro, boasting a hashrate of 255 terahash per second (TH/s).
Can I mine Bitcoin on my iPhone? ›
It is possible to mine Bitcoin on a smartphone, both on an Android device or an iPhone. Phones are computers, and any computer can be set to the task of computing hashes. A hash is a one-way transformation of data. Computing the right hash, as requested by the Bitcoin software, is the “puzzle” that miners try to solve.
Is cloud mining illegal in the US? ›
Currently, Bitcoin mining is legal in the United States and the majority of other countries. However, you may want to research local laws where you live.
What is the cheapest way to get into mining crypto? ›
So, as you can see, the cheapest way to mine cryptocurrencies is to mine on a home computer in a region with inexpensive electricity. Depending on your computer, it may be more profitable to mine on a GPU or mine coins whose hashing algorithm allows them to be efficiently mined on a CPU, such as Monero.
Which crypto doesn t require mining? ›
IOTA. IOTA uses the “Tangle”, an alternative form of technology that does not require miners. It is maintained by smaller devices and, as such, has lower energy requirements.
Monero (XMR), ZCash (ZEC), Vertcoin (VTC), Ravencoin (RVN) and Grin (GRIN) are among the cheapest cryptocurrencies to mine in 2023, offering a good opportunity for those considering starting crypto mining.
Is mining worth it 2023? ›
Crypto mining is still lucrative, however it's potentially not as profitable as it was in years past. That's real for a variety of factors, consisting of the fact that for a lot of 2022 as well as right into very early 2023, crypto worths were down means off their tops. How Much Does a Miner Earn?
What happens if no one mines crypto? ›
In the absence of miners, it would be nearly impossible to maintain the blockchain. Mining involves spending large amounts of computing power on algorithms to secure the network and order data. The algorithm relies on third-party participants to be decentralized and receive monetary rewards for their efforts.
At what point is Bitcoin mining not profitable? ›
Bitcoin mining fees will disappear when the Bitcoin supply reaches 21 million. After that, miners will likely earn income only from transaction processing fees rather than a combination of block rewards and transaction fees.
What is the most profitable crypto mining in 2023? ›
Monero, ZCash, and Ravencoin are among the top 5 cryptos you can mine at home in 2023. From buying GPUs (or ASICs) to power supplies and other computer components, cryptocurrency mining is incredibly expensive. The easiest cryptocurrency to mine is one that doesn't require you to build a massive crypto mining rig.
What is the reward for Bitcoin mining in 2024? ›
The next Bitcoin halving 2024 date according to the BTC halving countdown clock is scheduled to take place at block 840,000 which is predicted to be solved on Apr 26, 2024 09:24:37 PM UTC. At Bitcoin halving 2024, the Bitcoin block reward is scheduled to drop from 6.25 Bitcoin per block to 3.125 Bitcoin per block.
Is there any future in mining? ›
The mining workforce of the future will be one that seamlessly embraces the digital transformation agenda. Mining companies must embrace innovation and partner with a trusted technology provider if they want to attract and retain the next generation of digitally literate talent, and protect their licence to operate.
What is the future of surface mining? ›
According to a Comprehensive Research Report by Market Research Future (MRFR), “Surface Mining Market Information by Technology, by Application, by Material, and Region - Forecast till 2030”, the market is estimated to grow at a 3.20% CAGR to reach USD 39,748.20 Million by 2030.
How to get rich from crypto in 2023? ›
Here are top 8 Ways to make money with Cryptocurrency in 2023:
- Cloud mining (9.8 points)
- Affiliate programs (9.7 points)
- Investing (9.5 points)
- Staking (9.4 points)
- Trading (9.4 points)
- Lending (9.2 points)
- Earning Interest (9.2 points)
- Airdrops (9.1 points)
Ethereum has become a valuable investment option, with its price skyrocketing from $11 to an impressive $1,734 in March 2023, marking a staggering growth rate of 15,659%.
But however Bitcoin evolves, no new bitcoins will be released after the 21-million coin limit is reached. Reaching this supply limit is likely to have the most significant impact on Bitcoin miners, but it's possible that Bitcoin investors could also experience adverse effects.
Will Bitcoin mining eventually end? ›
It's estimated that all bitcoins will be mined by the year 2140, at which point the last block reward will be released. If a Bitcoin is lost or destroyed, it cannot be recovered, which can lead to a decrease in the total supply of bitcoins and an increase in their overall value.
What happens after 21 million Bitcoins are mined? ›
The supply of bitcoin is limited to a final cap of 21 million. This is determined by bitcoin's source code which was programmed by its creator(s), Satoshi Nakamoto, and cannot be changed. Once all bitcoin is mined, the amount of coins in circulation will remain fixed at that level permanently.
Why should mining be stopped? ›
Unregulated mining has the potential to release harmful substances into the soil, air, and water.
Why mining should not be stopped? ›
Without it, we would not be capable of new technologies that allow us to advance; nor would we be able to maintain our current standard of living. So, what would happen if the world suddenly stopped mining tomorrow? Automobiles, both gas and electric would disappear.
Is mining a declining industry? ›
There has been a massive decline in the mining industry over the last ten years. This is clear in a number of areas that can be used to assess the state of the industry.
What are four solutions for mining? ›
There are four main methods of mining: underground, surface, placer and in-situ. The type of mining method used depends on the kind of resource that is being targeted for extraction, the deposit's location below or on the Earth's surface and the capacity of each method to profitably extract the resource.
What are 3 disadvantages of surface mining? ›
Humans face a variety of health risks caused by mining such as different cardiovascular diseases, food, and water contamination. Habitat destruction, alongside air, noise, and water pollution, are all significant negative environmental impacts caused by the side effects of surface mining.
What are the dangers of surface mining? ›
However, even with current regulations, surface mining can affect fish and aquatic resources through erosion and sedimentation, dewatering of wetlands, diverting and channelizing streams, and contaminating surface water and aquifers with toxic chemicals.
