Bitcoin Cloud mining calculator
I’ve been looking for ways to generate a profit from Bitcoin ever since it hit the news back in April 2013. With so many options you sometimes find yourself lost. Should you buy and hold, day trade, mine at home, start a bitcoin exchange, I can practically go on forever about ideas for making money from Bitcoin.
But one idea seems to catch the eye of most of my blog readers more than any other – cloud mining. For those of you who are unfamiliar with cloud mining, it’s basically “renting out” computing power from a company with a mining farm so you can participate in the latest gold rush of Bitcoin mining.
Ever since Bitcoin became popular back in 2013, the difficulty to mine increased drastically. This meant you needed to buy expensive hardware, find a place to store it and of course cool it (since Bitcoin miners tend to heat up quickly), only to exchange it with an even more expensive piece of hardware after 6 months, since the difficulty went up yet again.
The Promise of Cloud Mining
Enter cloud mining. A magical solution to solve your Bitcoin mining problems. No need to buy expensive hardware, find storage space, pay electricity bills or take care of cooling. All you need to do is “chip in” with a larger company on their mining expenses and in return you will get a portion of the earnings.
When you deal with cloud mining you rent out GH/s or TH/s, which measure how much computing power you will be able to mine with. But is this really worth the money you spend on it ?
I have to admit I was never a big fan on mining myself, it always seemed too technical and I preferred to just go ahead and buy my Bitcoins. But since I got so many emails lately asking me to look into cloud mining I decided to put it to the test.
In order to see if a mining contract is worth your money, you basically need to calculate how much money you will make from the money you invest. Just like any other investment, you want to check your ROI. To accomplish this I’m going to use a mining calculator, which is a small piece of software that does all of these calculations for me.