Trending: Investing in Bitcoin / 5 reasons to invest in Amazon / Investing in the Metaverse
Tuesday, May 23, 2023
INVESTOR TIMES
  • Home
  • News
    Central bank gold demand reaches record high in first quarter

    Central bank gold demand reaches record high in first quarter

    Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

    Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

    Big losers of 2022: Bernard Arnault, Elon Musk and Jeff Bezos

    Big losers of 2022: Bernard Arnault, Elon Musk and Jeff Bezos

    Authentic Brands Group beats Bluestar Alliance to buy Boardriders

    Authentic Brands Group beats Bluestar Alliance to buy Boardriders

    Retail spending dropped 1% in March

    Retail spending dropped 1% in March

    Will Europe’s commercial real estate sector be the next to fall?

    Will Europe’s commercial real estate sector be the next to fall?

    Elon Musk plans to compete in AI with Microsoft and Google

    Elon Musk plans to compete in AI with Microsoft and Google

    BlackRock’s warning to investors about interest rate cuts

    BlackRock’s warning to investors about interest rate cuts

    Mercado Libre invests millions in Mexico and Brazil

    Mercado Libre invests millions in Mexico and Brazil

  • Markets
    Intel stock in 2023: good entry point?

    Intel stock in 2023: good entry point?

    Possible Fed pause not a buy signal, BofA says

    Possible Fed pause not a buy signal, BofA says

    Iberdrola targets U.S. and Europe after sale of assets in Mexico

    Iberdrola targets U.S. and Europe after sale of assets in Mexico

    What factors drive Shopify stock?

    What factors drive Shopify stock?

    Jack Ma’s return to China and the (good) reaction of Alibaba shares

    Jack Ma’s return to China and the (good) reaction of Alibaba shares

    Investing in Lululemon: buy or wait and see which way the stock goes?

    Investing in Lululemon: buy or wait and see which way the stock goes?

    Will Europe’s commercial real estate sector be the next to fall?

    Will Europe’s commercial real estate sector be the next to fall?

    Investing in Playtech? High growth potential in the United States

    Investing in Playtech? High growth potential in the United States

    BlackRock’s warning to investors about interest rate cuts

    BlackRock’s warning to investors about interest rate cuts

  • Investing
    Real estate investing strategies: How to simplify mortgage settlements for savvy investors

    Real estate investing strategies: How to simplify mortgage settlements for savvy investors

    What factors drive Shopify stock?

    What factors drive Shopify stock?

    Why Adidas and Beyoncé are splitting up and what it means for investors

    Why Adidas and Beyoncé are splitting up and what it means for investors

    Sinclair stock generate ambiguity among experts

    Sinclair stock generate ambiguity among experts

    Mercado Libre invests millions in Mexico and Brazil

    Mercado Libre invests millions in Mexico and Brazil

    Big Technologies has large margins and the advice is to wait

    Big Technologies has large margins and the advice is to wait

    Warren Buffett’s best advice to Bill Gates

    Warren Buffett’s best advice to Bill Gates

    What are AT1 bonds and why did Credit Suisse make them news?

    What are AT1 bonds and why did Credit Suisse make them news?

    Hedging hurts more than stock market declines, study says

    Hedging hurts more than stock market declines, study says

  • Technology
    What’s behind the drop in C3.ai shares?

    What’s behind the drop in C3.ai shares?

    Huawei boosts China in chip wars

    Huawei boosts China in chip wars

    Elon Musk plans to compete in AI with Microsoft and Google

    Elon Musk plans to compete in AI with Microsoft and Google

    TikTok ban would violate the First Amendment

    TikTok ban would violate the First Amendment

    Twitter is worth half as much as before Elon Musk

    Twitter is worth half as much as before Elon Musk

    Tech leaders call for 6-month halt to AI developments

    Tech leaders call for 6-month halt to AI developments

    Mexican fintech unicorn bets on expansion in Brazil

    Mexican fintech unicorn bets on expansion in Brazil

    7 Reasons to Invest in Instagram Marketing

    7 Reasons to Invest in Instagram Marketing

    Why Americans want to remove Instagram from their phones

    Why Americans want to remove Instagram from their phones

  • CryptocurrenciesTRENDING
    Why has cryptocurrency trading volume fallen so much?

    Why has cryptocurrency trading volume fallen so much?

    Hunters On-Chain: a play-to-earn game for investment and fun at the same time

    Hunters On-Chain: a play-to-earn game for investment and fun at the same time

    Bitcoin price could reach new highs in 2025

    Bitcoin price could reach new highs in 2025

    Tether on track for new market capitalization record

    Tether on track for new market capitalization record

    Sony patents NFT developments for its consoles and video games

    Sony patents NFT developments for its consoles and video games

    Audits, complaints, taxes, celebrity fines: what is the SEC looking for?

    Audits, complaints, taxes, celebrity fines: what is the SEC looking for?

    Binance victory lasted only a few weeks, says Kevin O’Leary

    Binance victory lasted only a few weeks, says Kevin O’Leary

    SEC redoubles pressure against the crypto sector

    SEC redoubles pressure against the crypto sector

    Do Kwon and Chang-joon apprehended trying to escape to Dubai

    Do Kwon and Chang-joon apprehended trying to escape to Dubai

S&P 500 (USA) 
4.166.79  25.84  0.62%  
NASDAQ Composite (USA) 
12.621.68  99.09  0.78%  
Dow Jones (USA) 
33.235.34  51.24  0.15%  
FTSE 100 (United Kingdom) 
7.762.95  8.04  0.10%  
EURO STOXX 50 (Europe) 
4.342,38  43,25  0,99%  
Nikkei 225 
30.957.77  129.05  0.42%  
VIX 
17.89  0.68  3.95%  
Bitcoin (USD) 
27.234.71  336.75  1.25%  
Ethereum (USD) 
1.851.03  31.39  1.73%  
  • Home
  • News
    Central bank gold demand reaches record high in first quarter

    Central bank gold demand reaches record high in first quarter

    Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

    Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

    Big losers of 2022: Bernard Arnault, Elon Musk and Jeff Bezos

    Big losers of 2022: Bernard Arnault, Elon Musk and Jeff Bezos

    Authentic Brands Group beats Bluestar Alliance to buy Boardriders

    Authentic Brands Group beats Bluestar Alliance to buy Boardriders

    Retail spending dropped 1% in March

    Retail spending dropped 1% in March

    Will Europe’s commercial real estate sector be the next to fall?

    Will Europe’s commercial real estate sector be the next to fall?

    Elon Musk plans to compete in AI with Microsoft and Google

    Elon Musk plans to compete in AI with Microsoft and Google

    BlackRock’s warning to investors about interest rate cuts

    BlackRock’s warning to investors about interest rate cuts

    Mercado Libre invests millions in Mexico and Brazil

    Mercado Libre invests millions in Mexico and Brazil

  • Markets
    Intel stock in 2023: good entry point?

    Intel stock in 2023: good entry point?

    Possible Fed pause not a buy signal, BofA says

    Possible Fed pause not a buy signal, BofA says

    Iberdrola targets U.S. and Europe after sale of assets in Mexico

    Iberdrola targets U.S. and Europe after sale of assets in Mexico

    What factors drive Shopify stock?

    What factors drive Shopify stock?

    Jack Ma’s return to China and the (good) reaction of Alibaba shares

    Jack Ma’s return to China and the (good) reaction of Alibaba shares

    Investing in Lululemon: buy or wait and see which way the stock goes?

    Investing in Lululemon: buy or wait and see which way the stock goes?

    Will Europe’s commercial real estate sector be the next to fall?

    Will Europe’s commercial real estate sector be the next to fall?

    Investing in Playtech? High growth potential in the United States

    Investing in Playtech? High growth potential in the United States

    BlackRock’s warning to investors about interest rate cuts

    BlackRock’s warning to investors about interest rate cuts

  • Investing
    Real estate investing strategies: How to simplify mortgage settlements for savvy investors

    Real estate investing strategies: How to simplify mortgage settlements for savvy investors

    What factors drive Shopify stock?

    What factors drive Shopify stock?

    Why Adidas and Beyoncé are splitting up and what it means for investors

    Why Adidas and Beyoncé are splitting up and what it means for investors

    Sinclair stock generate ambiguity among experts

    Sinclair stock generate ambiguity among experts

    Mercado Libre invests millions in Mexico and Brazil

    Mercado Libre invests millions in Mexico and Brazil

    Big Technologies has large margins and the advice is to wait

    Big Technologies has large margins and the advice is to wait

    Warren Buffett’s best advice to Bill Gates

    Warren Buffett’s best advice to Bill Gates

    What are AT1 bonds and why did Credit Suisse make them news?

    What are AT1 bonds and why did Credit Suisse make them news?

    Hedging hurts more than stock market declines, study says

    Hedging hurts more than stock market declines, study says

  • Technology
    What’s behind the drop in C3.ai shares?

    What’s behind the drop in C3.ai shares?

    Huawei boosts China in chip wars

    Huawei boosts China in chip wars

    Elon Musk plans to compete in AI with Microsoft and Google

    Elon Musk plans to compete in AI with Microsoft and Google

    TikTok ban would violate the First Amendment

    TikTok ban would violate the First Amendment

    Twitter is worth half as much as before Elon Musk

    Twitter is worth half as much as before Elon Musk

    Tech leaders call for 6-month halt to AI developments

    Tech leaders call for 6-month halt to AI developments

    Mexican fintech unicorn bets on expansion in Brazil

    Mexican fintech unicorn bets on expansion in Brazil

    7 Reasons to Invest in Instagram Marketing

    7 Reasons to Invest in Instagram Marketing

    Why Americans want to remove Instagram from their phones

    Why Americans want to remove Instagram from their phones

  • CryptocurrenciesTRENDING
    Why has cryptocurrency trading volume fallen so much?

    Why has cryptocurrency trading volume fallen so much?

    Hunters On-Chain: a play-to-earn game for investment and fun at the same time

    Hunters On-Chain: a play-to-earn game for investment and fun at the same time

    Bitcoin price could reach new highs in 2025

    Bitcoin price could reach new highs in 2025

    Tether on track for new market capitalization record

    Tether on track for new market capitalization record

    Sony patents NFT developments for its consoles and video games

    Sony patents NFT developments for its consoles and video games

    Audits, complaints, taxes, celebrity fines: what is the SEC looking for?

    Audits, complaints, taxes, celebrity fines: what is the SEC looking for?

    Binance victory lasted only a few weeks, says Kevin O’Leary

    Binance victory lasted only a few weeks, says Kevin O’Leary

    SEC redoubles pressure against the crypto sector

    SEC redoubles pressure against the crypto sector

    Do Kwon and Chang-joon apprehended trying to escape to Dubai

    Do Kwon and Chang-joon apprehended trying to escape to Dubai

INVESTOR TIMES
Home Cryptocurrencies

Mining Bitcoin and other cryptocurrencies without investing in hardware? -Here’s how it’s done

INVESTOR TIMES by INVESTOR TIMES
6/21/2021 - 0:37
in Cryptocurrencies
Reading Time: 6 mins read
bitcon minning
Share on FacebookShare on TwitterShare on LinkedIn

With the current boom in cryptocurrencies, many users feel a renewed interest in the possibility of mining bitcoin or other cryptocurrencies and obtaining a passive income that can be revalued over time.

And is that investing in bitcoin or other cryptocurrencies is not the only way we can benefit from the current bull market we are experiencing: cryptocurrency mining is hotter than ever.

What is Bitcoin and cryptocurrency mining?

When we say that cryptocurrencies are decentralized we mean that there is no central authority in charge of supervising transactions and ensuring their operation.

On the contrary, there are a large number of individuals or miners who do such work, who are in charge of validating transactions through a consensus mechanism and of sustaining all the infrastructure necessary for cryptocurrencies to work. These individuals are called miners.

Minning bitcoin
Around the world, there are thousands of Bitcoin nodes and miners who are in charge of validating transactions and who are rewarded for their work.

And as you might be imagining they do not do their work altruistically: they receive a reward for their work in the form of bitcoin or other cryptocurrencies.

In the case of bitcoin, in total there are only 21 million bitcoins to be put into circulation, of which 18.5 million have already been mined (i.e. they have already been distributed among the miners who help maintain bitcoin as a reward for their work).

Synthesizing, the Bitcoin mining process that a miner does consist of:

  1. Verify and validate the last transactions that have occurred in the Bitcoin blockchain. This part of the job makes our job as miners to audit the network, legitimizing and verifying the transactions that have occurred. To avoid that we may have bad intentions and falsify the results, the work that our miner does will be compared with that done by thousands of other miners. If there is no consensus on the results, our work will be excluded.
  2. Solving complex mathematical problems: In this stage of mining, called proof of work, our job as miners will be to solve as quickly as possible a mathematical problem, whose complexity increases with each Bitcoin that is mined.

The first miner who manages to solve both points gets the reward: 6.25 BTC (more than a quarter of a million dollars or euros at the current Bitcoin exchange rate).

The problem we run into today is that mining Bitcoins is such a lucrative business that it is full of large companies that are dedicated to it with tens of thousands of very powerful processors working simultaneously.

Years ago you could mine Bitcoins with a simple desktop computer; now you need specific and very powerful hardware created for that purpose.

Fortunately for the average user, there are still ways to mine Bitcoin and other cryptocurrencies that can be profitable and do not require investment in hardware: cloud mining.

Cloud mining, the solution to mine Bitcoin and other cryptocurrencies without investing in hardware (or even for free)

Within the cryptocurrency mining sector, there are companies that, even having the capacity to mine, decide to rent their high-performance infrastructure in small “portions” so that users like us can mine as the big players in the industry do.

cloud mining bitcoin
Thanks to cloud mining, we can rent processing capacity from large data centers to mine cryptocurrencies.

And you may ask, why do these companies rent their infrastructure when they could be mining themselves? Well, because of a risk issue: mining cryptocurrencies has a certain risk while renting infrastructure is a safer business. These companies decide to make less money but have more financial security, because at the end of the day they always make money, whether the Bitcoin goes up or down.

Currently, mining in the cloud has become a very lucrative business due to the large increase in price that cryptocurrencies have experienced. Every day there are more and more people who manage to obtain passive income with this type of mining, so the availability of these services is becoming scarcer every day.

However, there are still a few companies with the availability of mining machines for rent (or to “give away”, as you will see below):

1) StormGain.com – Allows free bitcoin mining to its customers

This company is a rare case among the others, as it allows free (yes, free) bitcoin mining to its customers.

StormGain.com is a cryptocurrency exchange that you probably already know, as recently it is experiencing a big boom on the Internet and is the official sponsor of Italian soccer team Lazio. The reason for its growing popularity is that it offers lower commissions than other more popular exchanges, such as Binance or Coinbase.

In addition to the above, it has recently allowed its customers to mine bitcoin completely free of charge, albeit under certain conditions.

stormgain bitcoin mining

 

They “lend” you their bitcoin mining infrastructure, but in exchange, you have to invest the profits you get from mining in some cryptocurrency they have on the exchange. That is, you have to make some operation with the mining profits in order to withdraw them.

Why do they allow you to mine Bitcoin for free?

It is clearly a very clever marketing strategy. Currently, cloud mining services are in high demand and in short supply, they go highly sought after.

StormGain.com offers you their mining infrastructure for free, but since you have to do some operation with what you earn from mining they make sure you will test their platform before leaving.

By testing their platform you will see that their commissions are lower than the competition and, most likely, you will become one of their loyal customers.

Also the more you trade on their exchange the better Bitcoin mining machines they will give you, to the point that their best users are given free mining servers capable of producing over $18,000/month in Bitcoin mining.

This StormGain promotion is getting a lot of buzz on the internet and given that there is currently a severe shortage of mining hardware it may not last much longer.

To benefit from it you can do so by accessing:

https://stormgain.com/bonus/minar-bitcoin

 

2) Genesis-mining.com – Mine Ethereum starting at $20/month

UPDATE: No availability. Genesis Mining has all of its mining infrastructure leased and all of its packs are out of stock.

Genesis Mining is a company specializing in mining Ethereum and other altcoins such as Dash, Litecoin, or Monero. Although it is headquartered in Hong Kong its mining centers are located in Iceland.

This Nordic country has an average annual temperature of 11.8 °C, which makes the cooling costs of the mining hardware lower. In addition, the cost of electricity in Iceland is especially low as 80% comes from renewable energy such as geothermal and hydroelectric power plants.

genesis mining crypto
A Genesis Mining operator at one of the company’s mining centers in Iceland.

Genesis Mining offers infrastructure leases at its mining centers through annual and bi-annual contracts. The cheapest plan consists of a pack with a processing capacity of 12.5MH/s, for a period of 2 years, for a one-time payment of $499.99 (about $20/month).

In addition, its entire infrastructure comes preconfigured for mining and has no maintenance costs.

How much profit would we get with this Ethereum mining service?

According to our own calculations, and assuming the current Ethereum price, the above mining pack would be able to produce $816 worth of rewards in 2 years, so we would make a net profit of $316.01 ($816 rewards -$499.99 rental costs), not counting the additional profit we could make if Ethereum continues to rise in value.

The ROI (return on investment, for its acronym) of the most basic pack 2 years ahead would be +63.20%, considering that the price of Ethereum remains stable for the next 2 years.

UPDATE: Genesis Mining currently has all its packs sold out. You can check availability at:

https://www.genesis-mining.com/pricing

 

3) NiceHash.com – A cryptocurrency mining capacity marketplace for advanced users

NiceHash is not a platform like the ones we have seen so far: it is a hash power (computational mining capacity) marketplace where users can buy and sell such assets.

In other words, NiceHash offers us 2 possibilities:

  1. You have mining hardware and want to sell your cryptocurrency mining capacity to the highest bidder. This case can be useful if, for example, you have a really good gaming graphics card and you want to profit from it (with a normal processor or a standard graphics card you won’t make a profit).
  2. You want to buy third-party mining capability to mine your own cryptocurrencies and (try to) make a profit.

This platform is, in effect, a live marketplace for mining capacity. The drawback it has is that, as it is a self-regulating real-time market, the profits you make by buying cryptocurrency mining capacity are small.

NiceHash minning
NiceHash allows you to buy “hash power” from third parties to mine cryptocurrencies and try to make a financial profit.

In addition, it requires advanced and constantly updated knowledge of mining algorithms and the most profitable cryptocurrencies. If you decide to buy “hash power” to mine cryptocurrencies and earn money for it you must take care to detect small inefficiencies in the mining ecosystem from which you can make an economic profit.

For example, if you detect that there is a specific cryptocurrency whose mining difficulty has decreased and forecasts indicate that its price may soon increase in value, you may have an opportunity to make money by buying hash power.

Calculating the profitability you can get with this method is impossible, as it will depend on your skills, the level of knowledge you have, and how the price of the cryptocurrency you mines evolves.

For more information about NiceHash you have a guide where they explain in detail the process of mining cryptocurrencies:

https://www.nicehash.com/guide/nicehash-buying-guide

Related articles

Why has cryptocurrency trading volume fallen so much?
Cryptocurrencies

Why has cryptocurrency trading volume fallen so much?

by Santiago Contreras
— April 26, 2023
Hunters On-Chain: a play-to-earn game for investment and fun at the same time
Cryptocurrencies

Hunters On-Chain: a play-to-earn game for investment and fun at the same time

by Alejandro Gil
— April 23, 2023
Bitcoin price could reach new highs in 2025
Cryptocurrencies

Bitcoin price could reach new highs in 2025

by Alejandro Gil
— April 21, 2023
Tether on track for new market capitalization record
Cryptocurrencies

Tether on track for new market capitalization record

by Santiago Contreras
— April 19, 2023
Sony patents NFT developments for its consoles and video games
Cryptocurrencies

Sony patents NFT developments for its consoles and video games

by Pablo Petovel
— April 8, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Last published articles

Central bank gold demand reaches record high in first quarter
News

Central bank gold demand reaches record high in first quarter

by Santiago Contreras
— May 8, 2023
Intel stock in 2023: good entry point?

Intel stock in 2023: good entry point?

by Pablo Petovel
  May 8, 2023

Possible Fed pause not a buy signal, BofA says

Possible Fed pause not a buy signal, BofA says

by Alejandro Gil
  May 7, 2023

Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

by Pablo Petovel
  May 7, 2023

Why has cryptocurrency trading volume fallen so much?

Why has cryptocurrency trading volume fallen so much?

by Santiago Contreras
  April 26, 2023

Facebook Twitter LinkedIn Telegram RSS

ABOUT INVESTOR TIMES

INVESTOR TIMES is an independent publication of economic, finance and investment content, owned and operated by Altas Ventures.

MORE ABOUT US

  • Our team
  • Work with us
  • Advertise on IT
  • Contact
  • Corporate information
  • Terms of Use
  • Cookies Policy
  • Privacy Policy

INTERNATIONAL EDITIONS

Investor Times in English

Investor Times en Français

Investor Times in Deutsch

Investor Times in Italiano

Investor Times em Português

Investor Times po Polsku

Investor Times на русском языке

El País Financiero (edición en Español)

© ATLAS VENTURES SLU, all rights reserved. Any information contained in INVESTOR TIMES is for educational and/or informational purposes only, it is not financial and/or investment advice. INVESTOR TIMES may obtain economic retribution by recommending services or products of third parties. INVESTOR TIMES does not accept, nor will it accept in the future, subsidies or funds from Governments, political parties or public institutions.

No Result
View All Result
  • Home
  • News
  • Markets
  • Investing
  • Cryptocurrencies
  • Technology

  •  EXCLUSIVE  3 Russian men are the real perpetrators behind Juicy Fields, says Glanse

     NEW  Compound Interest Calculator

     TRENDING 
    Investing in Bitcoin Investing in the Metaverse 5 reasons to invest in Amazon

© ATLAS VENTURES, all rights reserved.