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Cloud Mining Contracts Explained
Originally posted 31 Oct 2015 by
We have put together a short video on YouTube https://www.youtube.com/watch?v=TrFfpHruwSc
And it probably doesn't explain everything you need to know but to simplify things we would say 1. Hardware Mining is High Return, Medium to High Risk and Challenging Maintenance 2. Hosted Hardware is High Return, Medium Risk and Easy Maintenance 3. PACMiC Contract is Medium Return, Low Rish and Easy Maintenance So going on the variables of Return, Risk and Ease of Use I would say the Hosted Hardware would be best product, but that is a generalisation, there are other things to consider so please read through the rest of the points we make here Do you know about Cloud-mining contracts?
But do not know where to start?
Are you familiar with PPLNS/TH Earnings, PPS Distribution or Miner Redemption? Relax, neither were 90% of the rest of our customers. Which is why we have put together this guide together, so whether you are a customer of ours or not, we hope this will be helpful to you.
At Bitcoin Miners UK, we have made investing EASY! We have split our products into three categories Bitcoin Mining Hardware Hosted Bitcoin Hardware and Bitcoin Cloud Mining Contracts
We're assuming that you understand the basics of Bitcoin Mining, if you don't then please have a look at some links at the bottom of this tutorial now or at the end of this video but for now lets begin with...
Bitcoin Mining Hardware, in the early days it was profitable to allocate some of your PC or Laptops Graphics Card to mine, unfortunately, those days are long gone! As the mining difficulty increased, so did the performance requirements of mining hardware. This gave birth to the ASIC or Application Specific Integrated Circuit, which are over 1000 times more efficient at mining than your average graphics card!
Since 2011 the average efficiency has gone from 2 Mega Hash per Watt to well over 5000 Mega Hash per Watt in just 4 YEARS!
For most this is great, however, for many countries this is not desirable. In Germany electricity is $0.32 kW/h where as Iceland or China it can be as low as $0.07. That is nearly 5 times the price!
Then there are people in small homes who don't want extra noise or heat. And then there are people uncomfortable with waiting for their hardware to arrive.
The solution to High Electricity Prices, Lack of Space and Delivery Time is Hosted Bitcoin Mining Hardware, We have sourced purpose built Mining Farms in Iceland and China. This has the benefit of having the lowest electricity prices in the world with the added luxury of purpose built structures which are Safe Secure 0% Downtime with 24/7 Technical Support Climate Controlled Environment
This not only minimises your stress by minimising the hassle of: Maintenance Technical Support Security and Noise It MAXIMISES the PROFIT by making use of: Cheap Electricity No Shipping Costs No Import Tax, Duties or Value Added Tax (VAT) No Days lost in the Shipping and Delivery Process!
So this means that Hosted Bitcoin Mining Hardware is certainly the most profitable, BUT, then there are people who do not know what do do with their profits and have no strategy for re-investing their profits. Some people choose not to re-invest their profits, but this is where people go wrong!
The MOST fundamentally important thing to an investor is Compound Interest, Albert Einstein called it the Eighth Wonder of the World, he said; “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” A common way to invest in Bitcoin for people who want to take less risk is what’s called a PACMIC (Payout Accelerated Cloud Mining Contract), which gives you the ability to automatically reinvest the profits back into your account, increasing mining power and profitability.
It is not the most Profitable, but definitely a consideration for someone a little risk averse, we have put this table together and hope this helps you appreciate their strengths and weaknesses.
So as you can see these investments will make you anywhere from 10 up to 30% annually, which is a return most banks and hedge funds could only dream of. And that is without taking into account that Bitcoin is not only likely to increase in value it is a good way to diversify your wealth.
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