Here I will briefly explain the concept of mining, how mining has changed over the years, the difference between mining and cloud mining, and how cloud mining could benefit you.
What is Bitcoin Mining and How Has it Changed Over Time?
Bitcoin mining is the process of verifying and confirming transactions on the blockchain. The blockchain is the data structure that holds information about every bitcoin transaction. In practice, the blockchain is just a public ledger. Miners simply do the work of maintaining that ledger and all of the transactions therein. This is referred to as “proof of work.
Miners conduct this “proof of work” with specialized computers that are constantly trying to solve complex mathematical calculations. Whenever miners complete their work, a new “block” is added to the chain, hence the term “blockchain.” Inside of each of these blocks are the transactions, which become an immutable part of the blockchain once the miner verifies it.
This immutability means no one can alter transactions. Transactions become a permanent part of the blockchain, and will exist in the blockchain so long as it exists. More importantly, every time a miner solves a puzzle and completes a block, they are rewarded with freshly minted bitcoin as payment for their work. This is also how new bitcoin is added to the economy.
There will only ever be 21 million units of bitcoin. This is the cap, and it will be reached in the year 2140. When this happens, miners will not be rewarded freshly minted Bitcoins. They will only profit from transaction fees.
This process of mining was once easy for everyone to conduct with their home computer. In the early days of bitcoin, anyone with a CPU could mine on the Bitcoin network. This means that in the early days they could mine bitcoin, maintain the ledger, and gain rewards.
However, because the bitcoin network has grown so large, mining has turned into a massive operation. Now bitcoin mining is conducted in large warehouse-like facilities with a multiple specialized circuits that work in unison to maintain the ledger and create new bitcoins. As a result, individual bitcoin mining is extremely difficult and people now mine in pools. It would take years for a miner to earn any rewards, and thus it is not profitable or practical.
What is Cloud Mining and How is it Different?
This has changed with contract-based cloud mining, though. Cloud mining is the process of contractually renting hashrate from a pre-existing mining pool. This prevents you from having to obtain the resources to buy the specialized equipment and run complicated software yourself. It is a great option to generate bitcoin rewards, because it does not require all of the overhead and technical expertise of conducting traditional bitcoin mining.
All you have to do is determine what kind of contract and hashpower you want to rent, and then you earn bitcoin rewards that are generated as part of the mining process. It is extremely easy and can be very profitable. However, many cloud mining services in the industry charge high fees for contracts, and some might be engaged in a scam operation. However, at pool.Bitcoin.com, we offer fair, transparent, and lucrative cloud mining contracts.
Bitcoin.com’s Cloud Mining Service and its Benefits
Currently, we offer bitcoin and bitcoin cash cloud mining contracts. Sign up and start mining right now. We provide different initial prices for various hash rates. For clarification, a hash rate is the output of a hash function in bitcoin. More simply, it just means the speed a computer is completing an operation with bitcoin’s code. The higher the hash rate, the more Bitcoins you will earn.
Furthermore, we offer 103 percent of the block rewards and charge zero fees. This means that over time you will begin to profit from a contract with us quicker than with our competitors. We’ve also partnered with the largest U.S.-based bitcoin mining center, which has allowed us to sell some of the best contracts in the industry.
We even offer a lifetime mining plan with a reasonable beginner fee and small daily fee. The lifetime plan means you can mine with us “forever,” or until the difficulty increases to the point where it not as profitable. Or you can begin with a shorter term (12 month) contract to test the water. In either case, partnering with Bitcoin.com for cloud mining is a more advantageous way to earn bitcoin rewards at a lower price. The daily fee is just small fee we charge to help maintain the facilities and pay the power bill.