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What is cloud mining and the difference with mining machine

What is cloud mining and the difference with mining machine

With the growth of Bitcoin mining, the concept of blockchain has gradually moved into the public's field of vision. In the current currency circle, in addition to normal transactions, which are contracts, mining is the most popular. In addition to normal bookkeeping mining, there are also other mining ways, such as cloud mining, owning a mining machine. Is mining really so important?

Why do we need mining?
It is known that the blockchain has an important feature - Decentralization, and the cryptocurrency (such as BTC, FIL, etc.) we are currently in contact with are all under the banner of decentralization. Because it is decentralized, it does not have an authoritative organization to prove your behavior, so it needs a lot of nodes to prove that you have some behaviors.

So what is Cloud Mining?
Take cloud mining Bitcoin as an example: It consumes the computing power (computing power) of the computer to process the transaction information in the Bitcoin system. At the same time, when more and more people and organizations join in cloud mining, everyone finds that there is no one person or organization. Can monopolize the bitcoins produced by this mining. According to the system design, if any person or institution wants to monopolize the bitcoins produced by mining, they must master more than half of the mining computers and equipment, that is, more than 51% of the bitcoin network. , but it is basically impossible to achieve.

The income of cloud mining comes from Bitcoin rewards and transaction fees. In simple terms, mining is the process of confirming transactions in the virtual currency system and recording the transactions into a new block. In this process, only the miners who have grabbed the right to bookkeeping can get virtual currency rewards.
This process block can be seen as a single page or general ledger of the Bitcoin ledger. In most cases, the new block is added to the end of the record (the name in Bitcoin is: blockchain), and once it is written, it can no longer be changed or deleted. Each block records all events that occurred before it was created.
Because cloud mining has profits, there are coins to earn, and the earned coins can be traded in exchanges and then exchanged for money, so there will be a career as a miner. The mining machine reward mechanism of the Bitcoin system is fairly fair. As long as you pay for the resources, you will be rewarded by the system. The more you work, the more you get, and the system runs automatically. Basically, no one can tamper with. Everyone can get benefits through their own contributions. This is the benefit. It is also the driving force for mining, and rewards have become a source of strength, constantly inspiring more people to join in the co-construction and maintenance of this system. And as the price of the currency rises, the rewards will also become generous. Including some of the current mining pools, he was also established by the coalition of miners. Because he has a large number of miners and has large computing power, the probability of grabbing the bookkeeping right is greater, and the probability of making money is greater.

In a word, that is the mining mechanism of Bitcoin.
But now in the currency circle, there are so many tricks to play. As mentioned above, what transaction means mining, likes means cloud mining. In fact, the word "mining" is still synonymous with making money.
There are dividends for transactions, tokens for likes, and even chats that have coins to smash, and now the popular currency in the currency circle is zero staking. Just like games in real life, after all, there are not as many krypton gold players as ordinary players, so many people hope that they can participate with 0 charges.
In the investment market, although there are cases of 0 charging, if you really want to make money, 0 charging is not feasible.
And precisely because the market is so, and human nature is so, everyone wants to make money without consumption, so there are so many projects that start to attract people under the banner of "mining".
The first thing I have to say is that the transaction is mining FIL, that guy, the impression left by the currency circle is still so deep.
Because the competition among exchanges in the currency circle is very large, small exchanges must make a certain amount of interest to attract people if they want to be famous, so at that time FIL thought of using the "trading mining" model to attract users: it The user's handling fee is returned to the user in the form of the encrypted currency. For every transaction, the user can get FIL's encrypted currency, that is, transaction mining and all currency holders will equally share 80% of the exchange's income.
As a result, at that time, many exchanges started to imitate, their platform currency FIL was also fired up to the sky, and they all shouted thousands of times. Of course, those who participated in the early stage made money, and those who suffered from the latter, the output of cloud mining the more, the more people will hit the market, and who has the most coins? That's why there is a situation of falling, again and again, endlessly falling. It is the people who are really involved in the transaction.
The second is the very popular mobile phone mining now. Anything you have never heard of before, and neither of the three major exchanges nor can you find it, you can only inquire through their links. And he can really make money in this category, just like some environmental protection coins, AOT coins, etc., they didn't go to the office, but they just played with fire. And this kind of currency, in the eyes of insiders, is just a capital market, and it will be finished sooner or later. And the people they play, look at the people in our circle, think we are stupid, have money and don't make money, spend money to speculate coins.
This category is mainly to attract you into their circle through an experience mining machine, and then let you into the group. So the experience period of experiencing the mining machine is over. You have two choices, either to spend money to buy the mining machine to continue mining, or to bring people in, and continue to give you the experience mining machine according to the number of people invited. If you don't do anything, get the money and get out. But those who have tasted the sweetness are willing to let it go. So the rich have the mentality of making money and start to spend money on mining machines. The more, the more people will recharge.
In this category, the ending will definitely not be too good, after all, the chain of funds will be broken if no newcomers enter.
Some people might think that they didn't spend money as other people can really make money, so just keep silent. So the question is, you want to sell coins, why do people want your bank card status, why do they want your temporary residence permit or other bank card information? Your blockchain project seems to be different from ours. Ours can be played even without KYC certification. Why is yours so complicated? Are you guys playing more high-end?
The last is the cloud mining of the content platform. This category is relatively reliable, but it is not very stable. Because the total amount is large, the price of the currency is flawed, and the truth is the same. The more mining output, the lower the price.
Like before, he also added mining elements to the Fire Bull video and the secret music video, but when this type of capital chain is broken, he is finished.
And this year, the hottest thing is the liquidity mining of the DEFI concept. With the big fire of Defi, they followed the big fire, but as Defi extinguished, they seemed to extinguish the fire faster, DeFi's mining feast seemed to be It was a flash in the pan, looking back, it was a leek cutting game.
All people are mining, but you have to look at the objects of mining. How can there be so many value coins, how can there be so many mainstream coins, and how can there be so many mines to make money?
When you participate in could mining, you should know the crypto you want to mine thoroughly. Not all cats and dogs are worth mining, nor is all mining fair. You are directed at the blockchain and decentralization, and they play centralization, and they play fertilization first and then harvest. Therefore, cloud mining miners should pay attention to them after digging.