The Criminal's Guide to Bitcoin - Cloud Mining
Before we begin...
I highly encourage you check out the previous Hub in the series, The Basics on Striking It Rich. This will give you the basic rundown on Bitcoin its use in the criminal world, along with providing a few hints and tips at staying anonymous on the web.
Welcome one and all! Whether you're new to the cryptocurrency scene or you're a virtual Al Capone, thanks for stopping by. The Criminal's Guide to Bitcoin is a guide for the 'less than law-abiding', who are looking to set up their own evil empire. Last time we covered the basics, such as obtaining Bitcoin, connecting to the Deep Web, setting up shop and of course, several techniques used by the best to keep their activities hidden.
One thing that occurred to me is that most of you wannabes may not have the proper equipment set up to run an intricate criminal syndicate. Maybe you lack the funds or you don't want to explain to your mother why you have an evil genius lair in her basement. If you're just too honest to relive someone else of their Bitcoins, then Cloud Mining might be the answer...
WARNING! THE FOLLOWING GUIDE IS FOR EDUCATIONAL PURPOSES ONLY! I AM IN NO WAY RESPONSIBLE SHOULD YOU CAUGHT BREAKING THE LAW OR DOING ANYTHING ILLEGAL! EVEN THOUGH CLOUD MINING IS PERFECTLY LEGAL, PLEASE KEEP THIS INFORMATION IN MIND.
What Is Cloud Mining?
Cloud Mining (or Cloud Hashing) is for those who want to mine Bitcoin, but without the cost or annoyance of managing your own mining rig. Essentially, Cloud Mining companies set up a data centre to mass-mine Bitcoin. People looking to earn some Bitcoin can pay for a portion of the company's mining speed. The speed at which Bitcoins are mined is measured in hashes. The more hashes you have, the faster you mine Bitcoin.
Cloud Mining allows you to buy a certain number of hashes, so that you receive a portion of whatever the company mines. Most companies sell Gigahashes per second (or GH/s), but you may find places where you can buy in MH/s (lower) or TH/s (higher).
If you decide to go ahead with Cloud Mining, there are two types of contracts you can purchase. The first is contract-based that lasts for a set amount of time, normally a year. The second is a miner that lasts a lifetime.
Contracted Cloud Miners
Contracted Cloud Miners allow you to mine for a specified period of time at a guaranteed hash rate. Let's say I pay for a 100 GH/s contract for a period of five years. No matter what, I am guaranteed to mine at 100 GH/s until my contract runs out. The majority of the Cloud Mining market is made up of companies selling mining contracts.
Lifetime Cloud Miners
With the recent price drop in Bitcoin and the upsurge in miners, some companies have decided to sell lifetime Cloud Miners. As the name would imply, you buy a specified amount of hashes and mine with them until the company goes under. Or the internet dies. Whichever comes first. Whilst
We'll take a look at some of the well-known Cloud Mining companies and I'll give my opinion on their services. We'll also examine the pros and cons of purchasing a Cloud Mining contract.
And Now, A Word From Our Sponsors
If you're interested in other methods of making money in the virtual world, why not take a look at my Hub on Virtual Economies? This guide/analysis takes a look at how the online markets function and gives a few examples of how people made actual money from their in-game actions. It also delves into certain criminal actions undertaken within this market.
Cloud Hashing is one of the biggest contractors out there. The company was founded in February 2013, probably one of the earliest known instances Cloud Mining. Since its creation, it has boasted of mining over 27,500 Bitcoins for 5,000 or so customers. It has been featured in The New York Times, The Wall Street Journal and even Yahoo! Finance. It boasts a total mining rate of 3.65 PH/s, more than any other known company.
Despite these fantastic figures and accomplishments however, Cloud Hashing quickly falls flat against more recent competitors. They offer four different levels of contract: Broze, Silver, Gold and Platinum:
- Bronze offers 60 GH/s for $299.
- Silver will get you 250 GH/s for $999.
- Gold brings a sizeable 1 TH/s for $2,999
- Platinum allows you to customize your amount for any order over $10,000.
If none of these interest you, you can buy GH/s at a rate of $0.59, with a minimum purchase of 500 GH/S required.
First thing to note is that not only are all of their contracts sold out, but it's actually cheaper to buy the GH/s on their own. Furthermore, the price per GH/s is overpriced compared what most sites will charge for it. Add the fact that the minimum purchase is ridiculously high and the lack of updates to the site and Cloud Hashing just doesn't cut it against other competitors.
Check out Cloud Hashing here!
Bitcoin Cloud Services
Bitcoin Cloud Services
Next up is Bitcoin Cloud Services. Although they show a simpler looking website and only hold a total hashrate of 1.26PH/s, it is obvious they are superior to Cloud Hashing in several ways. Right off the bat, they only charge 0.00135BTC per GH/s (about $0.49 at the time of writing). Not only is this cheaper than Cloud Hashing, but there is a much lower minimum purchase. You only need to buy 10 GH/s, compared to Cloud Hashing's 500.
As if that wasn't favourable enough, the contracts last for five years in contrast to Cloud Hashing's one. Finally, there are ZERO fees when using BCS. They pay for maintenance, electricity or mining pool fees. Granted, it isn't perfect. The service doesn't appear to be as advance and the website only takes Bitcoin, so you're out of luck if you only deal in standard currencies.
Visit their website here!
Or use my referral link!
Next we move on to Genesis Mining. Rather than offer the standard service for a set period of time, any GH/s purchased on the website last for life. Another change from the norm is that they also offer Cloud Mining for other cyrptocurrencies and not just Bitcoin. Their mining packages come in three tiers: Gold, Platinum and Diamond.
- Gold gives you 20 GH/s and costs $15.99 (or $0.79 per GH/s).
- Platinum offers 1,000 GH/s and costs $779 (or $0.78 per GH/s).
- Diamond serves up a staggering 10,000 GH/s for a mere $7,699 (or $0.77 per GH/s).
So yes, it's incredibly expensive. The good news is that there are no other fees for you to pay, including maintenance and electricity. Plus, they offer ways to distribute your mining power between different currencies. So you can focus your power on the most valuable currencies, or gather vast amounts of less valuable cryptocurrencies.
Check out Genesis Mining here!
If you're feeling generous when making a purchase, use 2JV9et to receive a discount and help me out!
The newcomers to the Cloud Mining market, Hashie may not be experienced but they are without a doubt a force to be reckoned with. At launch, they brought to the table a massive 7.6 PH/s worth of mining power! This was even confirmed on the BTC Guild, the top source for stats for all things Bitcoin.
But an incredible mining rate isn't just what Hashie has to offer. They charge some of the best rates out there, with a mere $4.90 per 10 GH/s. Their website gives you the ability to rename, merge and split and even sell your miners to other members on the website. There are also stats showing your miners' speeds and their efficiency over a period of 24 hours.
And finally, if you're still sceptical about Hashie (or Cloud Mining in general), they offer a free 10 GH/s miner to get you started.
Check out Hashie here!
If you feel like supporting me, then use my referral link!
Bitcoin Cloud Services - Pros and Cons
- One of the cheapest Cloud Mining companies available.
- Five year contracts.
- Low minimum purchase.
- No fees whatsoever.
- Limited in terms of mining power.
- Only accepts Bitcoins.
Hashie - Pros and Cons
- On par with Bitcoin Cloud Services in terms of price.
- Lifetime contracts.
- Various unique options, such as selling your miners to other members.
- Volume discounts.
- Low maintenance fee.
- Free 10 GH/s miner to get you started.
- Only accepts Bitcoins.
- Fluctuation in mining speeds. They can be higher or lower than what you paid for.
Cloud Hashing - Pros and Cons
- One of the oldest and most experienced Cloud Mining services out there. Very well-known and trusted.
- Cheap maintenance fee.
- Expensive and outclassed by other companies.
- Large minimum purchase necessary.
- Site appears to be outdated.
- Contracts only last one year.
Genesis Mining - Pros and Cons
- Offers both Bitcoin and Altcoin mining solutions.
- Ability to distribute mining power between preferred currencies.
- No fees.
- Lifetime contracts.
- One of the more expensive mining companies.
- Not much variety in terms of contracts.
One thing to keep in mind with Cloud Mining is that it can be difficult to turn a profit, either over a short or long period of time. There are several factors to keep in mind, such as the difficulty for mining Bitcoin, maintenance costs, duration of your contract, estimated output of your miner, etc.
Before purchasing any Cloud Mining contract, I'd highly recommend using a profitability calculator, to determine whether or not its worth your time and money. Thanks for reading! This has been the philosophicalbrit. If you enjoyed the article, be sure to follow me on Hubpages for future updates in this series and others. See you next time!