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Cloud Mining - Why Can Cloud Mining Services Mine Bitcoins on Mobile Phones?

​"Own mines, ultra-low electricity prices, and real mining machines, so you can mine with one click without leaving home!" Since 2017, "cloud mining Bitcoin" rental services have been on the rise. Various cloud mining services advertisements have flooded media platforms and currency circles, such as Antminer. Investors who plan to live a miner addiction have begun to move around and prepare to make a fortune.  
On the real map of the mining empire, most of the miners are stationed in areas with low electricity prices. They bear the risks of market fluctuations, devaluation of mining machines, and industry policies, and earn meager profits.  
And the "cloud miners" in the virtual world can really mine Bitcoin and make substantial profits with the rented "computing power" and "mining machines"?  
  
**Cloud Mining Platforms**  
Since the end of 2017, cloud mining services platforms have emerged, and cloud mining services leasing has entered the public eye.  
With lower BTC mining thresholds and more new gameplay, the "Nationwide Cloud Mining Era" seems to be coming.  
For investors in cloud mining services mining, the cloud mining services participation process is as simple and fast as shopping. Investors only need to select the corresponding cloud mining services product according to their personal investment needs, and then pay BTC or cash, and they can continue to obtain BTC during the effective period of cloud mining services.  
  
Therefore, cloud mining can be understood as cloud mining or online mining. The cloud mining products purchased by the customer are generally the right to use the agreed computing power within the agreed time, for example, the right to use 100T computing power for 130 days.  
The most representative of these is the closure of the cloud mining services platform, and investors have no way to protect their rights. Typical cases include the closing of the early cloud mining services service provider Roomao Company and the incident of the computing power tower running away.  
As early as February 2015, after Roasted Cat lost its connection, Roasted Cat’s cloud computing service platform AMHash issued an English announcement on the bitcoin talk forum saying: "The Announcement of AMHash Dividends Suspending" and stopped dividends. It is understood that during the first batch of computing power sales at that time, the roast cat company received a total of 6,250 bitcoins. Now the bitcoins are worth more than 50 million U.S. dollars.  
The closure of the Roast Cat Company has caused investors to lose their money.  
  
Roasted cats are not a special case. In September 2018, in the exchange group of the cloud mining services mining platform, many investors reported that "the computing power tower cannot withdraw cash", "cannot log in", and "the boss runs away".  
The Hashtag official stated that due to the continued decline in the currency price, the current low mining profit is not enough to pay the electricity bill, and the actual profit has been 0 for 10 consecutive days. The company is preparing a solution to ensure the interests of users. Rita decided to temporarily suspend service.  
Judging from the response of Hash Power Tower, the main reason for the platform's suspension of services is that "the actual income is 0 for 10 consecutive days", that is, the violent fluctuations in the price of Bitcoin have caused the mining income of cloud mining services to drop to zero, leading to mining The contract is terminated.  
  
But the investors did not wait for the "solution", the official Hashrate Tower suddenly disbanded the exchange group, and the customer service and staff could no longer be contacted. In the rights protection group spontaneously formed by investors, there are radical remarks such as "rights protection", "send the boss to jail" and so on.  
In addition, many cloud computing platforms that have been online since the end of 2017 have also suspended operations. Through Baidu and Google, it is no longer possible to find the once popular cloud computing platforms such as Interstellar Cube and Bit Power.  
Of course, these are only problems encountered by small and medium investors. Well-known miners will also use cloud mining services to "cut leeks."  
![](http://image.danews.cc/upload/doc/20211014/6167c7ad67aad.png)  
  
**Even big miners use cloud mining services**  
In the second half of 2017, Bitcoin was in full swing. At that time, in many well-known mining farms brand sold cloud mining services to customers for a mining machine. Later, due to regulatory issues in the mine site, it was seized. The mine directly refunded the original price of all users' mining machines and compensated the customer with 2% interest.  
The result of such a treatment may seem kind, but in fact it is concealed.  
After that, these mining machines were transported by the mine to Hestologe to continue operation, and all the mining machines after the skyrocketing became the mine's.  
Therefore, investors who participate in cloud mining services mining must keep their eyes open. For investors who want to participate in cloud mining services mining, the most important point is to choose reliable and powerful cloud mining services businesses.  
In addition, since the total computing power of the entire Bitcoin network generally increases dynamically under constant conditions, the percentage of the computing power purchased by users in the total network computing power will become smaller and smaller, and the mining revenue obtained will also become smaller and smaller. .  
In the event of a negative market situation, the price of Bitcoin plummets, although the network computing power will drop slightly, but the increase in computing power caused by the increase in price ratio is not the same, so the number of bitcoins mined by miners will not increase significantly. But due to the fall in the price of Bitcoin, it will become more difficult for investors to return to the gold standard.  
Cloud mining services mining also has a certain threshold for withdrawing coins. For example, some cloud computing platforms will set a certain threshold for withdrawing coins, requiring investors to dig up to 0.01 bitcoins or more to withdraw cash. If you mine the number of bitcoins. If it is less than 0.01, it will be given to the cloud computing platform for nothing.  
In short, you must keep your eyes open when you participate in cloud mining, otherwise, in this market where there is no supervision, there are all kinds of sinkholes waiting for you.  
Assuming you avoid all pits and meet conscientious merchants, will cloud mining services mining really be a good business?  
![](http://image.danews.cc/upload/doc/20211014/6167c7ad89551.png)  
  
**Will cloud mining services be a good business?**  
Under the current mining landscape, cloud mining can be regarded as a good business, and there is a huge gap compared with offline mining.  
According to the provisions of the cloud mining services platform, when the contract expires, investors cannot get the mining machine behind the computing power.  
So what is the profit of this mining contract? According to the provisions of this cloud mining services product, each (1T) cloud mining services produces 0.00000831 BTC per day (this data will change with the change of network computing power). Assuming that the output remains unchanged, the contract expires and the investment. The winner will get 0.2842 Bitcoins.  
In fact, because the difficulty of Bitcoin mining in each cycle fluctuates violently, according to historical experience, the difficulty of Bitcoin mining will increase at a rate of about 2% every 15 days. The crazy influx of machines is in a state of long-term rise.  
With the increase in computing power, the investment yield of cloud mining services will inevitably drop sharply, and the final investment yield may be far less than 230%.  
  
This regulation obviously circumvents most of the mine’s responsibilities.  
To put it another way, suppose an investor directly buys an Antminer S19 with a computing power of 95T from a mining machine manufacturer. What will the return on investment and the outcome of mining be like?  
Currently, the Antminer S19 futures mining machine on Bitmain’s official website has a hash rate of 95T and a price of 1,000 dollars.  
First of all, let’s look at the investment. Under normal circumstances, the service life of this type of mining machine can reach 3 years. However, since investors who purchase mining machines can finally get a second-hand mining machine, and the electricity cost is relatively low, it is obviously more cost-effective to buy a mining machine.  
  
Secondly, look at the income. An Antminer S19 mining machine with 95T computing power can produce 0.00086694 bitcoins a day. Under the condition of the same difficulty of the whole network, 0.9492 bitcoins can be dug after three years, worth about 60,000. , When there is no computing power, it far exceeds the mining revenue of cloud mining services.  
Of course, there are still a large number of factors beyond the control of investors in cloud mining. For example, cloud mining services contracts often stipulate that if the output of computing power for 30 consecutive days is not enough to pay the electricity bill, the cloud mining contract will be suspended and investment The player's capital and bamboo basket are all empty. Or, there is no mining machine behind the cloud mining. Investors are only participating in a game of reeling. When encountering such a platform, they can only accept it in the end.  
All in all, for new investors, participating in cloud mining needs to keep their eyes open.

Bitcoin cloud mining - A New Opportunity to Make a Fortune?

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