What is Bitcoin "Mining"?
To put it simple, the Bitcoin network is a gigantic peer-to-peer ledger of past transactions, all of which need to be verified and confirmed. The ever-lasting confirmations require a huge number of hashing power (provided by mining hardware) to solve complicated and random mathematical problems. And to reward people who contribute their hashing power, the Bitcoin network will send out 12.5 bitcoins every 10 minutes. This is how bitcoins are “mined” – a reward mechanism of the network for hashing power contributors.
Early Bitcoin client versions allowed users to use their CPUs to mine. They went outdated by surging hashrate of the network.
GPU Mining is drastically faster and more efficient than CPU mining. Yet they are still behind the exponentially increasing mining difficulty.
ASIC miners specifically designed for Bitcoin mining were first released in 2013. For the amount of power they consume, they are vastly faster than all previous technologies.
If you want to try mining yourself, you’ll need to prepare with the following:
1. An ASIC miner: you can only mine bitcoins with enough hashing power using professional mining hardware;
2. Accessories: you need devices for power, internet connection, ventilation, cooling etc;
3. Mining software: you need to download special software to run your miner;
4. Mining pool: you need to join a mining pool in which, the profit from each block is allocated among pool members based on the hashrates they contribute.
What is "Cloud Mining"?
Cloud mining enables users to purchase hashing power from hardware in our data centers, without managing hardware, software, electricity or other issues to mine bitcoins. With cloud mining, we will work as your agent to deploy and run the most advanced Bitcoin miners under professional operation and maintenance. We will help you achieve the best ROI secured by lower power consumption, electricity cost and higher mining yields in our own pool. You can start mining Bitcoin almost in real-time on purchase of our cloud mining contract. It will save you all the trouble and nuisance to run a miner on your own, and bring to you more yields instead.
|Home Mining||Cloud Mining|
1) Freight and/or taxes;
2) Week-long shipping period before deployment
Real-time mining on purchase
|Accessories||YOU need to prepare PSU, internet cable, ventilator, shaft etc.||Cloud mining operators provide them|
|Software||Time-consuming to learn how to set mining software especially for a newbie||Cloud mining operators provide them|
|Maintenance||Mining time and bitcoin loss when your hardware goes wrong and stays unstable||Professional maintenance with ZERO downtime|
|Electricity Cost||Sizable electricity cost accompanied by heat and noise if you mine at home||Extremely low cost with large-scale deployment|
I choose ViaBTC for cloud mining because they are running their own mining pool. They have real miners and deliver better payouts with a PPS+ allocation method.
— zi**ck, ViaBTC User
Cloud mining is easier to mine bitcoins. Antminer S9 is so far the best mining hardware so it should mine for a long period, with more ROI.
— z**lin, ViaBTC User
I think cloud mining offers a great chance for global users to participate and contribute to a “decentralized” network by running their own hashing power.
— x**loc, ViaBTC User
Do you charge any fee for cloud mining contract?
Yes. Besides the daily electricity cost, we will charge a 6% management fee from your mining income.
What is management fee?
Management fee covers the costs for mining farm maintenance, deployment, repairs, staff expenses, emergencies, risk prevention etc.
How to buy a cloud mining contract?
Choose the contract and amount you want to order, and pay the order with your Bitcoin balance at ViaBTC account (please fund your account if there’s short balance). The contract will be activated immediately after we confirm receiving your payment. The mining income will be paid out from the NEXT day of your order.
What if I don’t have bitcoins to pay?
You can go to an exchange such as OKCoin.com, Bitfinex to buy bitcoins with fiat money (USD, CNY etc.).
How to calculate my mining income?
Our cloud mining contract applies to a PPS+ method with ViaBTC mining pool. Your income will be the theoretical PPS+ payouts calculated against the current difficulty and shares of your order, deducted by daily electricity cost and management fees. Please refer to here for calculation.
When will you allocate the mining income?
The daily mining income will be paid to your account between 8:00 AM and 16:00 PM the next day.
Why does daily mining income fluctuate all the time?
Mining difficulty of the network will change every other week and Bitcoin price is fluctuating too, which will lead to change of electricity cost. As difficulty keeps increasing, the mining income will be declining in the long run. So the sooner you start mining, the more bitcoins you will mine.
How long can I get my money back and how much more can I mine?
Based on the current mining difficulty and Bitcoin price, the estimated time for ROI will be around 300 days. Mining income after that will be your pure profits. But we won’t guarantee 100% ROI or profitability as market swing is hard to anticipate. You need to evaluate possible risks for investment. But compared to speculation, mining will be a more sustainable and lasting investment in Bitcoin.
How long is the term for cloud mining contract?
Cloud mining contract is on lifetime term as long as it is profitable. But it will be automatically terminated if the mining income cannot cover electricity cost and management fees for 10 consecutive days, due to surging difficulty or bitcoin price fluctuation. ViaBTC will redeem all contracts from users with the remaining market value of the miners at that time.
How can I withdraw the bitcoins that I mine?
You can go to “Account” to set your wallet address which will receive your daily mining payouts.
What if I don’t have a Bitcoin wallet?
You can go to a wallet service provider such as Blockchain.info to create your own Bitcoin wallet.
Why don’t you mine yourself if cloud mining is profitable?
As it requires huge amount of investment for large-scale deployment of mining farms, we’d like to give away a part of our mining profits to users to dilute our risk as “not putting all eggs in one basket”. And also, we want “decentralization” in mining too so that global users will all have an easy chance to take part in mining.
Where are your mining farms?
Our farms are located in Inner Mongol, Sichuan, Sinkiang of China with the low electricity cost. We’d like to give site tours if you are interested.
Which pool are you using for cloud mining?
Our cloud mining contracts are mining in our own pool – ViaBTC.com which adopts a PPS+ payout method. It allocates BOTH block reward and transaction fees (which now accounts for up to 10% of block reward) to offer much higher mining income.
Do you have a trading market for cloud mining contracts?
We will put online a trading market for cloud mining contracts in the near future for you to sell and buy contracts.