- 1 An Introduction to Buying Hash Power
An Introduction to Buying Hash Power
Buying Hash Power – the term cryptocurrency has been around for a while now and with cryptocurrency comes a long list of associated terms, with “mining” being just one of them. Mining, also known as prospecting, refers to the creation of digital currencies like Bitcoin, Litecoin and Ethereum.
This term dates back to the early days of cryptocurrency. Then individual users would work to create coveted coins from their own computer by mining. Creating cryptocurrency, however, is a complicated mathematical task and has become more and more difficult in recent years.
It has certainly made mining at home more or less impossible. Cloud miners have thus established themselves recently in order to make it possible for everyone to mine without owning expensive hardware. Nowadays, prospective users can buy hash power from them and participate in the coveted mining of their preferred cryptocurrency.
Buying Hash Power From Cloud Miners – Is It Worth It?
If you don’t have the necessary equipment, but still want to take part in the cryptocurrency mining process, cloud miners are the way to go. You can register with a cloud miner and buy associated hash power. With a range of options to suit your budget, it’s up to the individual to decide how much to spend.
Buying from a cloud miner isn’t a bad idea at all. They usually operate in countries with low electricity costs and can pass this saving on. The intensive computational processes that mining requires not only consume a lot of power but also lead to hardware overheating. In some mining halls, the sound levels are comparable to the sound of an aircraft.
Professional mining pools have an immense computing power of up to 20,000 graphics cards and more. You can easily imagine the noise levels such an operation would create. Cards are connected to high-performance equipment and run day and night, with mines continuously working to solve mathematical tasks.
Cloud miners have recently established mining farms worldwide. Individuals looking to prospect benefit from excellent hardware and optimal mining conditions without the expense of buying equipment.
The savings to be made on electricity usage are also significant. For this reason, cloud mining is an incredibly affordable alternative for the newcomer looking to mine.
Choosing the Right Hash Power for Mining Success
What options are available when purchasing hash power? The computing power required to mine digital currency can be compared to memory size. Services are generally divided into:
- H/s Hashes per second
- kH/s Kilo hashes per second
- MH/s Mega hashes per second
- GH/s Giga hashes per second
- TH/s Terra hashes per second
To be profitable and generate coins, calculators are constantly working on the mathematical equations of Bitcoin and other cryptocurrencies. The more computing power available, the higher the yield. This can be calculated by the selected cloud miner using a mining computer.
Cryptocurrencies also use different algorithms, which increases the difficulty level for each individual miner. For example, Bitcoin uses the SHA-256, while ZCash uses the zk-SNARKs. The more a miner wishes to earn from mining, the higher the hash power they should select.
Once a user has registered with a cloud mining provider and ordered hash power, they can begin mining immediately. On the website of respective hash power providers, prices and hash offers should be clearly itemized.
Prospective prospectors must choose a cryptocurrency such as Ethereum when they buy hash power. Almost all cloud miners offer the most popular cryptocurrencies such as Bitcoin, Litecoin and Ethereum.
Buying Hash Power – Finding the Best Supplier
Mining requires computing power to process transactions. This is combined with a block and all blocks created are stored in a database of the blockchain. The acquired hash power indicates the power with which the desired blocks can be found.
Computing power in cloud mining needs to be continually increased to generate continued revenue. With all cloud miners, it is possible to get a reward with less computing power. Each prospector is a percentage of success.
The more processing power that is provided, the faster the difficulty level grows. This difficulty refers to the computational difficulty of hashing a new block. Theoretically, this can no longer be managed profitably from home with an individual computer.
It is more lucrative to buy hash power from a cloud miner. Since various cryptocurrencies have been around for some time now, several cloud mining providers have become significant presences. Below you’ll find a quick overview of three of the most prominent.
Buying Hash Power from Genesis
Genesis has been a successful enterprise since 2013. The provider offers efficient computing power and has mining facilities in Iceland and other countries. Genesis offers hash power for the largest cryptographic currencies.
Buying Hash Power from Hashing24
This provider is just as serious about cloud mining, offering hash power to mine various virtual currencies.
Buying Hash Power from Hashflare
Hashflare has been around since 2015 and offers a solid service for those looking to start mining cryptocurrency.
If you want to successfully mine cryptocurrency, you won’t be able to avoid purchasing hash power from a cloud mining provider. This is because mining is only possible with high-performance hardware and a graphics card with at least 2GB of memory.
In addition, high energy costs must be taken into account. Many miners have realized that their mines running from home are no longer profitable. The positive thing about cloud miner services like Genesis is that there’s no obligation if mining ceases to be profitable. This means you’re not spending more than you have to.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.