The future belongs to cloud mining, say experts interviewed by CoinTelegraph. Nowadays, Bitcoin is the most popular cryptocurrency used as an alternative to traditional payment systems. All Bitcoin transactions must be verified by miners, in a process called mining .
This process is done by a software that accesses the CPU’s processing capacity to solve transaction-related algorithms. Originally, bitcoin mining was conducted on the CPU s of individual computers. Nowadays, to have enough processing power, that is done in big data centers.
Not everyone can own a big data center, obviously, and that’s why recently a new type of mining started to gain popularity, cloud mining.
Cloud mining allows users, instead of using their own machines, to buy mining power of the hardware placed in remote data centres. All bitcoin mining is done in the cloud, without any offline hassle, such as electricity, hosting issues, or installation and upkeep trouble. Low cost of entry and minimal risks
Cloud mining offers a mining system with a low cost of entry, minimal risks, and expenses, it is opposite to traditional models of mining that involve procurement, maintenance and configuration of highly specialized hardware.
Traditional mining, in fact, needs “to maintain the frequency of “closing” blocks atten-minute mark. Increasing number of miners results in difficulty growth – the block is processed within 10 minutes; a number of miners decreases followed by the drop of difficulty and the close time of a block still takes 10 minutes”, commented marketing expert at HashFlare Alexander Gromov.
The reasons for cloud mining being a current trend are many and we had the chance to find out more about them in a recent interview with Mr.Gromov: “Cloud mining allows to hire specialized equipments and a team of professionals to maintain them, so you are not limited by the capacity of a real […]
