Evloution of Bitcoin cloudmining and its advantages
Why Bitcoin cloud mining?
We already learned about what are bitcoins and bitcoin exchanges in How to buy and sell bitcoins? Now lets we discuss how to do bitcoin mining.
Bitcoin mining Is a process in which BTC transactions are verified and added to block chain. Blockchain is the source that is used to release new bitcoins and it keeps track of past Bitcoin transactions. An algorithm SHA 256 (Secure hashing algorithm ) which is used to validate all bitcoin transactions.
Bitcoin mining is measured with hash power or hashes.The higher hash rate will increase the capacity of finding the next block in the block chain. The bitcoin network provides or releases new bitcoin to bitcoin miners in order to compensate their effort. A bitcoin miner can get more reward when he put more computing power.
In earlier days people used their own hardware like computer CPU and graphic cards to mine the bitcoins. But it was found to be a very slow process. Also, people used ASIC chips that are particularly prepared for bitcoin mining.
Cloud mining Is useful for people who don't want to use their own hardware or software. In cloud mining, you can outsource your mining process in a place where electricity issues and other offline issues won't occurs.
Advantages of cloud mining:
1.There is no excess heat that could be dealt with
2. The process of generating bitcoin in clouds is so quiet and calmful
3. No need for electricity and don't need to pay for it
4. There is no bitcoin mining equipment which is about to sell when mining does not earn a profit.
5. Ventilation problems will occur because there is no need of hot equipment
Types of cloud mining:
1. Hosted mining
2. Virtual hosted mining
3. Leashed hashing power
In any type cryptocurrency mining there should be a risk, but if you make a right choice you will get more profit. A miner should learn how to handle those. Bitdeal offers highly secured cloud mining platform with 24/7 support.