2017 made the world stand up and pay attention to what was happening in the digital sphere. The word ‘Bitcoin’ was being heralded latest greatest advancement in both technology and finance. Despite the fact that the cryptocurrency had already been in existence for around 7 years at the time, its sudden fame saw Bitcoin soar to a value of just under $20,000 a coin within months, leaving a slew of newly minted instant multi-millionaires in its wake.
Since then, the blockchain and
cryptocurrency have become hot topics of discussion. Through its ups and down,
and most importantly fantastic development advancements both have gained
tremendous traction in a number of international markets. Even though the
currency dropped in value by over 80% a year later in 2018, the romance between
investors and the decentralised platform was already deeply entrenched.
As a result, there is a lot of interest from a broad spectrum of both individuals and industries when it comes to Bitcoin and Bitcoin mining. In this article, we aim to explain the two most popular forms of crypto-mining and weigh up their pros and cons so that you can make a discerned decision on how best to go forward with your Bitcoin mining adventure. The two hot topics at hand are ‘Mine Pooling’ and ‘Cloud mining’.
MINING IN GENERAL
Bitcoin mining is undertaken on the internet. Sophisticated computer equipment called ASICs, made up primarily of graphics processing units, are used to mine mathematical algorithms from the web in order to create hash codes that are suited to extend the Blockchain. This is the way that e-currency is manufactured. From here it is sold at Bitcoin exchanges or used for trade.
ASICs are not cheap and can set
miners back thousands of dollars. When one realises the processing power
presented by certain Bitcoin mining companies, then you begin to realise that
they have the power to out-mine independent miners every time a hash needs to
be added to the chain, thereby making the job very difficult when isolated. In
order to compete, you would need to invest hundreds of thousands of dollars
Fortunately, both pool mining and cloud
mining make it possible for budding miners to make some money on the trot.
WHAT IS MINE POOLING?
Certain company giants allow pooling of resources to hash out codes for the Blockchain. If you have a rig, you can register with a pool, where you will make use of your hardware to mine for them. You will, therefore, be working in tandem with hundreds of other machines in order to uncover the next sequential hash on the chain. The company will then pay you out in accordance with the amount of work your machine put in when the next coin is mined.
This shared interest will generally
guarantee you some sort of kickback and is far more lucrative than going it
alone in many instances.
Advantages of Mining Pool
The advantage of pooling resources is that your chance of successfully mining coins is increased. While you’re sharing the reward you are cutting the risk down to a fraction of its potential too.
You are also able to unsubscribe
from a pool whenever you so choose and join up with another one. This ensures
that you can dictate your business and calculate your own risk.
Disadvantages of Ming Pools
The obvious downside to mining in this way is the cost involved. Both the rig and the running costs involved in mining with an ASIC is quite high. Naturally, you are limited to the quality of the equipment you can afford, which may only be able to push out a low stream of work.
WHAT IS CLOUD MINING?
Cloud mining is a cleaner way of investing in the mining process. By cleaner, we mean that you don’t have to purchase the rig or do any of the actual mining work, yourself. Instead, you link up with Cloud Mining organisations that sell off a percentage of their Bitcoin profits to people who help fund their exploits.
Cloud mining is simply Investing in
the mining interests of another and then benefiting from the rewards like a
partner in any company would. The percentages are worked out on how much you
Advantages of Cloud Mining
Cloud mining is a much cheaper and hassle-free way of investing into the mining process, as you need not buy a rig, nor pay the electricity bill, nor follow up the processes involved in the work. You need only part with your money as an investment.
Disadvantages of Cloud Mining
The risk involved in the success of
the venture is purely yours. Once your investment is made, there is no
guaranteed return. When pool mining, you always have options to mine elsewhere
or sell your rig to recoup costs, but with Cloud Mining, this is not possible.
THERE IS NO PAYOFF WITHOUT RISK
Investors and miners must always
remember that no investment is really worthwhile without a degree of risk. You
need to just analyse the data given to you and weigh up which method of mining
would suit your wallet and your lifestyle more.
THE VEGAS CASINO WAY
Of course, you needn’t mine Bitcoin at all to own it. The easiest way to get your hands on some coinage would be to purchase it on a verified Bitcoin exchange. Here, they will take your dollars in exchange for e-currency. This way, you can either hodl your Bitcoin and wait for a bull run and then sell high, or you could put it to work for you.
One of our favourite ways of putting Bitcoin to work for you is via online gambling. We at Vegas Casino offer casino gaming to Bitcoin holders so that they can maximise on their investments and win rewards the fun way. We will even direct your steps towards your first Bitcoin purchase from Coinbase so that you can be up and playing with little delay.
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