I had some Bitcoin Currency and was thinking about what I could possibly do with this balance? I could of bought something from a merchant that accepts Bitcoin or sit on it and hope it appreciates then sell… eventually I came to the conclusion that investing it would be the best way to go.
After some googling, here were the options I came up with:
- Setup my own mining operation and join a mining pool
- Invest it into a cloud mining service
Setting up your own mining operation requires forking out money on equipment, figuring out how to actually mine Bitcoin and then also electricity costs to keep it running 24/7. On top of that, I came to the conclusion that you’d still be at a disadvantage compared to the big fish of the Bitcoin mining world. It also didn’t help when I stumbled upon this article from Australian blogger Reckoner who decided to have a crack at mining another cryptocurrency Litecoin and made some big losses.
For all these reasons, I decided to go a cloud mining service as I could start earning instantly and without using anything other than my existing Bitcoin.
What is a Cloud Mining Service?
Cloud Mining services are offered by companies that are mining Bitcoin from a remote datacenter with cheap electricity and shared processing power. What they offer you, is the opportunity to lease their equipment or processing power (Gigahashes) to earn Bitcoin and in exchange they charge you a maintenance fee.
If you’re interested in learning about investing in Bitcoin through this method, check out my article on Cloud mining with Bit-X.