The Internet is replete with stories about the super-profitability of cloud mining and offers to participate in this enterprise. If we exclude from this the banal scam of gullible citizens, then what will be the bottom line?
What is cloud mining?
Essentially, cloud mining allows users to mine cryptocurrencies like Bitcoin or Ether without having to purchase expensive mining devices. You can rent the services of a data center that will mine for you, receiving a certain commission for this.
Due to the high cost, cloud mining is less profitable than it might seem. More importantly, when the price of Bitcoin drops, it is almost impossible to make money in this way - unfortunately, the operating costs of the activity turn out to be greater than the profit. According to the latest reports, for this to change, Bitcoin will need to exceed $8,900, and only then will cloud miners be able to break even.
Bitcoin therefore needs to reach at least $9,000 before cloud mining will become profitable. This is partly due to the increasing difficulty of Bitcoin mining, which is a consequence of its limited supply. According to Cryptovest, mining difficulty has increased significantly over the past three months, as well as over the past couple of days:
“In one day, mining difficulty has increased by 14.88%, and in the last three months by 47.92%. The effect of increasing difficulty is greatly affecting cloud mining. Some analysts believe that Bitcoin needs to break through the $8,900 mark for cloud mining contracts to start paying profit.”
At the moment, cloud mining is not such a profitable activity, in fact, you can lose much more. Of course, when the price of Bitcoin rises again, so will the potential reward for cloud miners.
According to cryptodaily.co.uk
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