What is the easiest way to mine bitcoin? When transactions are created, miners confirm their accuracy. The first person who verifies a block and successfully solves a puzzle receives 6.25 bitcoins as well as all transaction fees paid by the other participants in the network. On the other hand, people who are interested in bitcoin also visit blogs to know why there is an inclined demand for bitcoin in restaurants.
The incentive ensures that miners stay on with their work and continue trying to solve blocks for further rewards until no more blocks can be verified, resulting in an enhancement of bitcoin’s ecosystem security. There are two approaches for mining cryptocurrencies: the ‘Proof-of-Work’ (PoW) and the ‘Proof-of-Stake’ (PoS) approaches.
The POW model is mainly used by bitcoin’s primary development team and a few other proof-of-work cryptocurrencies. The efforts result in new coins being created in a one-to-one ratio with the amount of processing power put into mining bitcoin. These new bitcoins are added to miners’ wallets, and mining can continue until no more transactions are available to verify (total supply is capped at 21 million). First, let’s discuss the easiest way to mine bitcoins.
Cloud mining: A simple bitcoin mining venture:
Cloud mining is a service that enables the user to mine bitcoin without having specialist hardware, just with their computer. With cloud mining, companies provide their hardware and all the necessary infrastructure while users pay to use it. In exchange, users get modest sums of bitcoin in comparison to the block reward; nevertheless, cloud mining does not need a large capital commitment, as opposed to mining bitcoin by purchasing a real bitcoin mining rig consisting of pricey application-specific integrated circuits.
The process of mining bitcoins is based on mathematics and cryptography, showing that even computers now specialize in creative mathematical purposes. The entire process requires extensive high-quality hardware with high-speed internet access, which is why cloud mining eases the process
Different types of cloud mining;
1. Hosted cloud mining:
Hosted cloud mining is the easiest and easiest way to mine bitcoins. With this type of cloud mining, one needs to go on websites provided by such companies and purchase contracts. One can then submit their computer specifications, receive an account and start mining in minutes.
Algorithms of Proof-of-Work: The first thing to notice here is that two main types of proof-of-work algorithms are used in different platforms for various scenarios. The most widely used algorithm is SHA256; the second one is Scrypt (a descendant of SHA256). The former has been designed with a high hardware requirement and low efficiency, while the latter has relatively low hardware requirements with high performance.
2. Hardware cloud mining:
Hardware cloud mining is a more reliable way of cloud mining where one buys the equipment (or leases it) to start the mining process. The idea behind the hardware cloud mining platform is to keep the hardware in facilities while receiving payment for its usage. However, hardware-based platforms are known to have higher maintenance costs, but they get better performance per kilowatt-hour than remotely hosted solutions.
Profit Potential of cloud mining:
Even though there are more investment opportunities, the profitability of cloud-based mining is high as the returns are compensated by high fees and electricity consumption costs in the dedicated bitcoin mining, as it is tough to predict the exact number of bitcoins that can be mined with cloud-based miners but can make a massive amount of money with this type of mining.
Cloud Mining Services:
Many companies offer cloud services for most kinds of bitcoin mining. We collected some of them in this article:
Mega Mine – provides a range of hardware and pool options to mine bitcoins.
Bit Club– This Network offers professional mining services for any bitcoin miner, from homeowners to small-scale miners and entrepreneurs looking for a quick way to make money.
Bitcoin cloud mining allows you to earn bitcoins without putting your computing and skills at play. Your account is then synced with one of the mining pools of your choice, and you will start earning bitcoins in minutes. The earnings from cloud mining are outstanding if you don’t mind the idea of renting out your computer power for a monthly fee. Generally, people lease their computers, but some companies offer free leased-out computers to run in the cloud.