Cloud Mining Tips

Cloud mining tips and tricks for cryptocurrency contract mining.In recent years Bitcoin and other cryptocurrency mining has increasingly required sophisticated equipment and economies of scale to be profitable. The era of the profitable home miner for Bitcoin and Ethereum is pretty much over and many people who still want to get in on the lucrative crypto mining industry are choosing cloud mining as a solution. Cloud mining basically means hosted mining. You buy the equipment and the hashrate provider is supposed to run it for you. This makes a lot of sense in theory because electricity cost/climate/scale are all major factors in mining profitability. What are some cloud mining tips for those looking to buy hosted hashrate?

Cloud Mining Tips

If you are intent on cloud mining or using hosted mining please keep the following cloud mining tips in mind.

  1. Cloud mining providers are notoriously shady.

    Why continue to mine at a profit for a customer when you could fold up shop and mine for yourself? The only reason cloud mining providers exist legitimately is to raise capital for their own mining operation or as a hedge against a huge downturn in cryptocurrency price. The concept for the owners of cloud mining operations is “take a lesser profit now and avoid losing it all if cryptocurrency prices crash”. Unfortunately many cloud mining providers are scams. Cloud mining is extremely risky.

  2. Do not buy hashrate with cryptocurrency!

    Never pay cryptocurrency to mine cryptocurrency. In other words do not buy cloud mining hashrate with cryptocurrency. You are likely to never see a profit with increasing cryptocurrency value.Paying 0.1 Bitcoin for a contract that ends up only yielding 0.05 in mined Bitcoin because of a huge increase in Bitcoin price and difficulty is not a good prospect. You would have been better off holding the Bitcoin itself.

    Only buy cloud mining with fiat currency and recognize its a gamble. You may make more cryptocurrency mining than you could buy or you may make less. It depends on how fast the difficulty goes up for the particular cryptocurrency you are mining. Cloud mining makes sense if the price is stable.

  3. Do your research into a hashrate provider.

    Hashrate per dollar is not the only thing to research when looking into cloud mining. Ensure the prospective hashrate provider has a great track record by checking various websites. Forums such as Bitcointalk.org are an excellent starting place for this but expand your search to Bitcoin service review websites as well.

  4. Read the contract details fully.

    Know the contract length, maintenance fee, and the minimum withdrawal amount before buying. If the minimum withdrawal is 0.01 Bitcoin and you buy 100 GH/s of SHA-256 hashrate the chances of getting to withdraw are zero. Use a mining profitability calculator.

  5. Consider simply buying the cryptocurrency instead!

    In many cases you are much better off just buying and holding the cryptocurrency instead of cloud-mining. Consider just buying the cryptocurrency and keeping it in safe, offline storage.

    If you are still considering buying cloud mining hashrate please check out our article on our favorite provider Hashflare.

NiceHash Alternative

MinerGate.com logoNiceHash.com was a great choice for people looking to mine with a CPU or GPU. Unfortunately NiceHash was hacked recently and $65,000,000 USD worth of Bitcoin was stolen. A good alternative that is very similar to the “NiceHash Miner” software is MinerGate.

MinerGate offers a number of pools and their own custom mining software for CPUs and GPUs. MinerGate also offers cloud mining solutions though we cannot comment on the service the hashrate per dollar looks fairly competitive. All you need to do to get started with MinerGate is simply sign up and download the software.

Like NiceHash the software will automatically mine the most profitable coin. To get started with MinerGate simply click here. Alternatively you can read a more in depth guide on our dedicated GPU/CPU easy mining guide.

Bitcoin Vanity Address Generators

Bitcoin vanity address generators are not entirely safe.A Bitcoin vanity address generator will help you generate a custom Bitcoin address. A vanity address is like a vanity license plate for cryptocurrency. Examples of vanity addresses:

1HashrateFVj8ALj6mfBsbifRoD4miY36v

1BankAcctFVj8ALj6mfBsbifRoD4miY36v

Of course these are not real addresses but an example of vanity addresses. Are they a necessary thing? No, but they are fun. Are they safe? Absolutely not safe unless using split key generation. I do not recommend generating your own Bitcoin vanity addresses unless you have well researched doing so and understand the risks. There are quite a few examples of Bitcoin stolen from vanity addresses. If you must generate a Bitcoin vanity address the best way to do so is to through the VanityGen application itself. Using the application run on your own computer ensures you are the only one with access to the private keys.

A lot of web based vanity address generators exist. These generators will often do short vanity addresses for free but require payment for the longer ones. Since generating a 5-character or longer vanity address requires a lot of computing power these sites often charge per character for keywords of a certain length.

BitcoinVanityGen.com – Up to six letters for free. Payment in Bitcoin for longer addresses. Safety unknown to author.

VanityGen Wiki – Read more here on Bitcoin vanity addresses.

BitcoinTalk.org Thread on VanityGen Application

 

Hashflare.io Downtime Update

Hashflare.io Logo
Hashflare.io has provided services for 3 years.

UPDATE 12/14/2017 for Hashflare.io

Estonian hashrate provider Hashflare.io is down for scheduled maintence. For more info visit their Twitter account. Hashflare.io has been a reliable provider of a good hashrate per dollar ratio and their downtime should be minimal. Tomorrow their domain name does expire (see old article below) but I doubt they are exit scamming since they have adjusted their contract length lately to match the improved profitability of their Bitcoin contracts. Likely they are making security adjustments in light of the $65 million NiceHash Hack and possibly switching some internal systems over to Segwit to try to save some money in terms of Bitcoin transaction fees.

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Cloud mining provider Hashflare.io will be going down for scheduled maintenance the day before their domain expires. Despite operating for over 3 years Hashflare.io has had a lot of trouble lately updating their systems. Hashflare is facing trouble with Bitcoin withdrawals due to the increasing congestion of the Bitcoin network. To help combat this they have increased the minimum withdrawal amount to 0.0107 BTC of which 0.0007 BTC is a network fee. The Lightning Network cannot come soon enough for hashrate providers such as Hashflare and their customers. The only concerning information available is their domain name expires on the 15th of December (1 day from writing). If we assume they have their domain on auto-renewal this is likely not a problem.

All too often when the Bitcoin price skyrockets we see a shakeout of service providers. We have no reason to believe they will not resolve this issue. Click read more to view full-size screenshot of whois data and their Twitter statement from earlier downtime.

Read moreHashflare.io Downtime Update

Venezuela Announces “Petro” Cryptocurrency

Venezuelan Flag
Venezuela seeks to issue an oil-backed cryptocurrency.

Venezulan leader Nicolas Maduro announced on state TV that Venezuela will create its own cryptocurrency. Maduro announced the “21st century has arrived!” as he introduced the public to his idea during his portion of a 5-hour state TV slot. The new cryptocurrency will be called the “Petro”. Venezuela plans to back their cryptocurrency with their substantial nature resources including oil, diamonds, and gold. The hope of the Venezuelan government is that this will allow them to skirt US sanctions and conduct business with the world.

The Venezuelan bolivar has lost a remarkable 57% of its value in the last month alone as it continues its slide into oblivion. Wealthier Venezuelans are now mining and using cryptocurrencies as an alternative. Will the government cryptocurrency solve the Venezuelan currency crisis? It is difficult to know but it seems unlikely a government managed cryptocurrency will be any more successful than a failed government-managed fiat currency. Will the Venezuelan government even be able to successful implement this “Petro” cryptocurrency in its current state of dysfunction? Time will tell.

Read moreVenezuela Announces “Petro” Cryptocurrency

Bitcoin Lightning Network

Lightning Network is a protocol on top of the Bitcoin blockchain.
The Lightning Network may solve the Bitcoin scalability problem.

Bitcoin scalability is a contentious and important issue at the moment. The issue of scalability and increasing transaction fees came to a head recently with the Bitcoin Cash fork. Proponents of Bitcoin Cash (an altcoin) wanted larger blocks. When segwit2x failed they hard-forked off from Bitcoin to create Bitcoin Cash. The issue is increasing fees for space inside a Bitcoin block. At the time of writing it can cost as much as $5 to ensure space in the next Bitcoin block!

Since Bitcoin is increasing in usage and popularity and Bitcoin blocks can currently hold just one megabyte of transaction data the blocks are filling to capacity. While this is good since it means Bitcoin is growing it also means the Bitcoin bottleneck problem is real. Each Bitcoin transaction bids to get data inside a block through the transaction fee. If your fee is too low your transaction may not get into a block and ultimately may get orphaned (lost forever).

There are two potential solutions to this problem. The first is to increase the data each block can hold from one megabyte to a larger amount, this is the solution Bitcoin Cash and others such as Bitcoin XT have tried to implement. The second is to layer another protocol on top of the Bitcoin block chain and this is the approach of the Lightning Network.

Read moreBitcoin Lightning Network

Ethereum Rising

Ethereum is a great cryptocurrency.
Ethereum is a feature-rich technology and cryptocurrency.

The Ethereum project is on the rise. The popular cryptocurrency, Ethereum, is rising in both price per token and public popularity. The recent release of Solidity 0.4.19 has several bug-fixes but nothing nearly as exciting as the Ethereum project offers overall. If you are involved with cryptocurrency then you have probably heard of smart contracts. Smart contracts are contracts built with computer software. They are largely self-enforcing. Ethereum uses the EVM or Ethereum Virtual Machine to process smart contract byte-code (pre-compiled code designed to run on a virtual machine) distributed across thousands of nodes. This is an exciting project with a much broader scope than Bitcoin. Imagine contracts that execute themselves with no enforcement from a court — talk about introducing a whole new paradigm in business globally! This can bridge tons of problems of business and put a lot of lawyers out of business.

I encourage our readers to check out Ethereum if they are considering cryptocurrency investments. Bitcoin, Litecoin, and Ethereum compose the “cryptocurrency triad” that serves as a vanguard for the industry as a whole. Read more about the Ethereum project at Ethereum.org.

$30B Orphaned On the Blockchain

Any time a Bitcoin user loses their private keys or sends Bitcoin to the wrong address they lose access to it forever. There is no one to call to ask for your Bitcoin to be returned. Once it is sent it is done. So taking into account the Bitcoin that has been lost, orphaned, or misspent there could be over $30,000,000,000 in inaccessible Bitcoin. This is the high end of the estimation of “lost Bitcoin” but it is an interesting figure. Given that as of the time of writing Bitcoin is sporting a $165B market cap that would mean a significant portion of that Bitcoin can never be sold on an exchange or otherwise used.

Where did this Bitcoin come from?

It most likely came from early adopters back in 2011-2012 who mined large quantities of Bitcoin when those Bitcoin were not worth a lot. Now that Bitcoin has increased in value it is likely people will be more careful with storing their private keys. The use of hardware wallets such as the Trezor Wallet and the Ledger Nano S are improving the safety of cryptocurrency private key storage.

Another way cryptocurrency can be lost is through transactions that are dropped from the transaction queue without getting into a block. The rising fees of Bitcoin transactions can cause this problem to become more frequent with “microtransactions”.

Read the full article here.

Bitcoin Price Over $9000 USD

Bitcoin reaches all time high today of OVER $9000!

Bitcoin has passed a series of tumultuous hard-forks with a strong showing. With fears over the Segwit2x hard-fork a thing of the past Bitcoin surged past $9000 over the Thanksgiving day weekend. Bitcoin has reached an all-time high on growing investor confidence after successfully navigating a series of forks. Institutional adoption appears more likely than at any time in the past. If the Lightning Network works out in the coming year this price is not unwarranted in our opinion.

Surging up to $9400 USD as of the time of writing Bitcoin is poised to break $10,000 USD long before the end of the year (assuming a continued bull run). A surge in visibility for Bitcoin driven by it’s appearance on “normie” sources like CNBC and CNNMoney on a daily basis are helping drive awareness and improving trust among savvy traders. Institutional money has also helped drive Bitcoin’s price higher and its listing on the CME has helped boost its image with mainstream investors.


Russia May Issue Crypto-Ruble

Is a Russian government sanctioned crypto-Ruble possible?

According to current rumors circulating in the crypto-sphere Russia under the leadership of Vladimir Putin is set to issue a national cryptocurrency dubbed the “cryptoruble”. While this may sound funny it is a very serious development, if true. The creation of national cryptocurrencies has been a huge area of speculation and interest. National cryptocurrencies may take away some of the decentralized aspects of cryptocurrency and lead to privacy issues. Nevertheless this is a huge development and will be tracked. As of right now Hashrate.org categorizes this as a rumor, not a fact. Fascinating!

Edit: This appears to be more than a rumor. Visit Russia Today’s article for more information: https://www.rt.com/business/406960-russia-issue-blockchain-cryptoruble-putin/