For Bitcoin, things are quite difficult since the traditional mining concept is no longer profitable. It would take too much time to mine Bitcoin, especially with the standard home mining rigs that are now common. When it comes to Bitcoin mining, people turned to a relatively new concept called cloud mining. How does cloud mining work? Essentially, you invest in other people’s businesses. There are mining farms in remote locations where electricity is cheap or free. It comes with great advantages, especially for people who don’t have extensive technical knowledge or skills.
Other advantages are more practical. There is no need for loud and over-heated mining rigs in your home, no need for investing in hardware and related repairs, and no loss of aging hardware components. Although Bitcoin cloud mining showed to be profitable, the major issue lies in the fact that there is a considerable amount of risk involved. There are cases of fraud through Bitcoin mining and, obviously, a risk of losing your assets if businesses are poorly managed. Another profitable option is investing in ASIC – cards designed solely for the purpose of mining. The biggest issue with these is their high cost.
Aside from Bitcoin, there are many other options for mining. The most obvious way to mine is to invest in alternative cryptocurrencies, also known as altcoins. The altcoin with most potential today is Ethereum. Besides being consistent and offering great service to its users, Ethereum has an advanced blockchain technology and because of that, it is still possible to mine Ethereum from your home. Also, Ethereum offers smart contracts that are safe and quite fair. There is a bright future ahead for Ethereum, thus Ethereum mining could be a good long-term investment.
There are several other choices when it comes to choosing a cryptocurrency to mine. Some of them are Litecoin, Dogecoin, ZCASH, or Monero. When directly investing or mining, these are similar, so it’s important to take into account the service they provide their customers, how customer oriented they are and whether or not the concept offers something new and useful to people.