There are contracts on the market, called “cloud mining“, Which allow you to participate in bitcoin mining without having to do it.
In fact, bitcoin mining is now too demanding, requires a lot of resources, consumes a lot of electricity, and often it is not even profitable.
In particular precisely the profitability of mining is at the lowest ever, after the third halving of the prize to mine the blocks of the Bitcoin blockchain, occurred on 11 May 2020.
Therefore not only mining bitcoins nowadays is not easy, but it also risks being very expensive and not very profitable. Indeed, if electricity is used at a low cost, there is even a risk of losing it.
This means that you can only mine bitcoins profitably where you can use cheap electricity.
Furthermore, to be able to mine, investments in special machinery costing thousands of dollars are required, so much so that miners often finance their purchases by borrowing.
One of the various ways of obtaining low risk loans is to sell cloud mining contracts.
These contracts effectively discharge the investment risk on the user who subscribes them, in exchange for a part of any profits.
For many people, who do not have the right equipment, the necessary skills, and low-cost electricity, cloud mining contracts are the only way to participate in mining, albeit only indirectly, by simply investing their capital and set up the machines.
They appear as rental contracts for the equipment to mine, and the management of the same, in exchange for any profits.
Therefore, in this way, those who own and manage the equipment do not directly collect what they can earn by mining, but collect a fixed fee, leaving the risk and any profits to the customer.
As it is easy to guess, this kind of service also lends itself easily to illegal practices, since the customer who invests by renting this equipment, not only does not have access to it, but often cannot even check that it is actually used to mine.
After all, since the supplier collects a fixed fee, and does not even need to be able to mine bitcoin to earn, he could also decide to behave in a delinquent way and simply collect the fee by promising earnings that then maybe never come.
For this reason not many serious companies offer legitimate cloud mining contracts.
In particular, if the supplier discharges the risk of the mining activity to the customer in full, that is, leaving him 100% of the proceeds, it is possible to doubt that he has a real interest in making the machines work better.
Also if he promises high earnings, in return for limited investments, he most likely lies, suggesting dishonest behavior.
Companies that provide Bitcoin cloud mining
Having said that, there are some companies that provide bitcoin cloud mining contracts that are known to provide serious service.
Probably the most famous is Genesis Mining, which allows you to mine bitcoins and altcoins with daily payments.
Another very well known is Hash Flare, which offers efficient equipment and payments within 24 hours.
One of the most recent landed on the market is CryptoMining Farmwhile others are Hashnest, BitCoin Pool, Eobot, MinerGate Cloud Mining, Hashing24 and NuVoo Mining.
How cloud mining works
Once the contract has been signed and the required investment has been paid, the user must set the operating parameters of the machines through a special interface made available by the hardware manager, and depending on the parameters set, the machines will start operating.
This causes the user to set up the machines to work at their best, while the hardware manager merely deals with their physical functioning. Therefore the service provider collects the rental fee, regardless of the results obtained by its machines, while the user takes responsibility for their settings, and the risk associated with the investment, in exchange for any income generated by the mining.
However, some technical expertise is required from the user who decides to sign one of these contracts, because the income it can generate depends largely on the settings of the machines.