What is Cloud Mining?

Status
Archived
Joined
Feb 2020
From
İstanbul
Although cloud mining may seem easier than traditional mining systems, you should keep in mind the fact that the risk ratio is high. We can briefly define cloud mining as a mining package rental business over a company’s data field in any region of the world.
In cloud mining, the user leases processing power for a certain price and the generated crypto money is paid daily, weekly or monthly. However, it is known that there are many adversities of cloud mining.
There are big question marks about cloud mining. Unless it is certain that the companies are producing, the uneasiness of the users regarding reliability will remain a sectoral problem.
Therefore, after you invest in a cloud mining company, the company may suddenly disappear or go bankrupt. In such cases, your money will disappear and you will be disappointed. These malicious acts damage the image of cryptocurrency.
How Bitcoin Cloud Mining Works
Some cloud mining companies, adopting the Ponzi scheme, only care about individual investments. It is a system in which only the first entrants win and the remaining members of the platform are left unfulfilled.
When such companies list large income statements, giant investors and companies can participate in this system by making large investments under normal circumstances. However, since there is no product in Ponzi companies, they do not want corporate companies in the system. Individual investors are much easier meat.
Corporate companies can present great challenges to such Ponzi companies, but individual investors often give up in such a struggle. The individual investor cannot pursue the case by himself, or even if he does, he gives up quickly because the money is not that much. When giant corporate corporations see something going wrong, they want to secure the process by taking it to legal means. For this reason, Ponzi companies prefer individual investors.
 
Joined
May 2020
From
Venezuela
We should not take the terms of cloud and mining literally. Carrying out "Bitcoin mining" is similar to the action of extracting minerals such as gold, because it is about discovering or creating them technologically. The difference in this activity is that it does not take place in a "mine"; nor does it take place in a "cloud", but in a data processing center that does not belong to the interested party, but to an external company.
 
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Archived

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