What is Bitcoin?

Bitcoin is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

History of Bitcoin

Bitcoin was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its control code was released as open-source software. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

What is bitcoin mining?

Bitcoin mining is the process of creating, or rather discovering, bitcoin currency. Unlike real-world money that is printed when more is needed, bitcoin cannot simply be willed into existence but has to be mined through mathematical processes. Bitcoin maintains a public ledger that contains past transactions, and mining is the process of adding new transactions to this ledger.

What is Bitcoin Cloud Mining?

Bitcoin Cloud Mining is the process of mining utilizing a remote datacenter with shared processing power often contracted through a Cloud Mining company. This type of mining allows users to mine Bitcoins without having to manage their own hardware.

Advantages & Disadvantages of Bitcoin Cloud Mining:

Advantages:

• The absence of fans noises and overheating because of processors.
• A decrease in electric power consumption.
• No need to control, set up or repair the equipment.
• No excess heat.
• No noise from spinning fans.
• No energy costs.
• No need to buy expensive equipment.

Disadvantages:

• The lease expenses increase the final mining cost, which influences the final income.
• Minimum control and absence of a possibility to select one or another service.
• Fraud risk. Companies in this segment usually don’t work transparently and there are no leverages for them.
• A lot of scams.
• Non-transparent mechanisms of the companies.
• Absence of pleasure from creating their own mining system.
• A decrease in profit is a cloud-based company is also interested in receiving some income.
• Cloud the company may suspend or disbursements if the course of bitcoin will fal
• Lack of equipment which later could be sold.
• Inability to change the software used.

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