Bitcoins are virtual currency that are produced from computer systems using special high speed bitcoin hardware and software by cloud mining. Bitcoin network is extending day by day as it is stable, safe, secure and the amount you invest in mining the bitcoins may become more when you get returns as bitcoins. Bitcoins are globally accepted for business transactions and are being used as exchange medium. They change their value based on the demand for investments. In the starting days of the bitcoin exchange during 2010, one bitcoin valued less than 1 USD. But from the year 2016 to 2017 one can notice the significant rise in the value of bitcoin from 750 USD to 13,800 USD as of december 2017. However the value keeps on increasing and decreasing just like stock exchanges. Cryptocurrency such as bitcoins can be made from bitcoin cloud mining process. It is said that bitcoins are limited in number and only 21 million can be generated there after, it becomes stable.
Advantages and disadvantages of cloud mining
Investors make use of cloud mining as it is advantageous over self mining at home. Because it reduces the burden of buying the software and hardware equipment, problems encountered during its installation, setting up of the other components of mining rig etc. The advantages of cloud mining include no excessive heat generation from the system at home, no ventilation problem and no high electricity bills, if the mining seems unprofitable users need not worry about selling their mining equipment, also no troubles regarding the order supply from the equipment supply industries and the process goes easy and calm.
Coming the disadvantages the first and foremost one is fraudulence of the mining companies. Users are unable to check or know exactly how the mining operations like process of mining the blocks are performed as the users are no longer involved in the computing operations after purchasing the power. Other cons of cloud mining include bitcoin value may decrease or stay low this results in loss to the investors, due to high expenses of the services the returns gained from bitcoins may not be profitable and the complexity in making one’s own bitcoin hash systems, the software are really a burden.
Simply the process of bitcoin mining is adding blocks to the block chain after solving the algorithm and the network proceeds. Thus creating new bitcoins and adding the newly mined ones to the wallets of investors and sharing as rewards among the miners of bitcoin cloud mining process. The bitcoins need to be stored in bitcoin wallets wherein the private keys are stored actually but not bitcoins and the keys are used to access the virtual money (cryptocurrency), the Bitcoins.