Anyone who even for a moment haded with mining cryptocurrency, he had to consider the possibility of mining in the cloud. In view of the promising prospects that the Mines in the Cloud promise, it is difficult to pass indifferently to this issue.

Cloud Mining means renting mining capacity from a company that owns machines used in obtaining cryptocurrencies

Companies offer us high earnings in exchange for investing in their cryptocurrency mines. The more computing power you buy, the higher your earnings will be. We also need to sign a contract in which we commit to cooperate with the company for a specified period of time. Recently, in the face of the fact that more and more people have doubts about the integrity of companies, some of them are proposing short-term contracts or a trial period, e.g., 2 weeks, to try the site and check the profitability of cloud mining.

   If we have already stick to on investing our money in this venture, let's first check the location where the company is located. It is known that the profitability of mining cryptocurrencies depends on the price of electricity. So if the farm is based in Canada or the UK, it is a signal to stop investing. Electricity prices in these countries are so high that we are most likely dealing with a pyramid and saying goodbye to our coins in a sudden and brutal way. Location in China or Ukraine sounds much better. Be sure to check how much the company adds for the cost of maintaining the equipment and what are the commissions for making deposits and withdrawals. When a company has no other option to deposit money other than in the form of cryptocurrencies, I also advise against using its services.

The price of cryptocurrencies, and essentially BTC, has a significant impact on the profitability of cloud mining. If the BTC price is low, then cloud mining becomes completely unprofitable. It is known that the price of BTC can surprise.

   Most often, sites that offer cloud mining operate on the basis of the so-called Ponzi scheme. It involves buying the appropriate mining plan and recommending the site to other users. If a person signs up at your request, you get a fraction of their earnings. However, new capital is constantly flowing into the company. As long as new users come in and bring assets to the company, business has worked somehow. Payments are made from capital contributed by new users. To avoid capital depletion too quickly, the company introduces payout limits. This means that below a certain amount of money, we cannot withdraw the funds earned. We also get the opportunity to reinvest them, which most users are tempted by. As long as the sum of withdrawn funds is much lower than the inflow of capital, the pyramid is doing well. However, the whole enterprise is doomed to fall.

Companies that offer above-average investment returns are usually mere scams.

  So before you decide to join the earning program  "cloud mining", think twice. Let the words of one of my friends, whose opinion I value very much, be a summary of the topic. He described them briefly "mining in the cloud is one big shit". And so it is indeed.

*The content of the post was published by me on Uptrennd