Mining Bitcoin Solo vs. Equipment hosting services
January 20, 2021 - How-To Articles
Everything you should know about hosted Mining
Why struggle with something when someone else can do it cheaper and more efficiently?
This question is a constant in all services that permeate daily life. The same holds for Bitcoin mining. Bitcoin mining by individual miners is possible, but the efficiency varies depending on certain factors. As mining got more competitive, professional equipment hosting services like VBit Technologies came up to level the playing field.
Bitcoin has had a resurgence in recent weeks. Amidst such a strong showing, the interest in Bitcoin and the logistics behind it naturally increase during such periods. Many institutions are also catching on, with PayPal becoming the biggest financial entity yet to facilitate Bitcoin purchases.
While there are a number of cryptocurrencies circulating in the digital marketplace, Bitcoin is, without question, the most successful decentralized currency, one that relies on no central bank or government to oversee its regulation.
Being a pioneer has obviously worked in Bitcoin’s favor. However, this should not take anything away from the brilliance of the innovation of Bitcoin itself. Bitcoin isn’t slowing down anytime soon.
For now, Bitcoin has just about silenced critics who thought it would die a natural death like some technological trends in the past.
Bitcoin as a Resilient Asset
In the face of zero government and centralized institutions’ support for years, Bitcoin had the false tag as a fringe asset. Its rapid ascension in 2017 took everyone by surprise, except the true believers in decentralized currencies.
When Bitcoin went through its bear market in 2018, the naysayers were back. You couldn’t wipe the grin off their faces. Bitcoin was to be another of those trendy investments that disappear into the wind.
Except that it wouldn’t.
Bitcoin has shown remarkable resilience to appreciate again. At press time, Bitcoin is pushing the record highs of late 2017. For an asset class that is purely reliant on market forces, this is a great display of grit and an indication that Bitcoin is here for posterity.
Now, onto mining.
Bitcoin is acquired either through trading or mining. Trading is simple enough if you already have a considerable amount of money and simply wish to have Bitcoin as part of your portfolio.
Mining is the process by which computers around the world play a vital role in confirming Bitcoin transactions. Since the Bitcoin blockchain is decentralized, its founder had to devise a way for transactions to get confirmed. For transactions to be final, they have to be bundled into a block of transactions and added to the blockchain.
Through this form of Bitcoin mining, miners acquire coins without needing to put down money. In most circumstances, miners receive Bitcoin as a reward for completing “blocks” of verified transactions which are added to the blockchain.
Physical Mining At Home
Computers compete for the right to add the next block by completing complex mathematical equations. For their efforts, miners get new Bitcoin as rewards. The amount of Bitcoin released has been reducing as Bitcoin gets closer to its total supply. At the moment, the reward is 6.25 BTC.
Given the competitiveness of mining, computers with greater processing power have an advantage. As the years went by, mining equipment development turned into an arms race of sorts. There are Application Specific Integrated Circuits (ASICs) tailored specifically for Bitcoin mining. A normal home PC can no longer mine Bitcoin in this hyper-competitive world.
If you can afford an ASIC rig at home, physical mining is a decent option. All you need from there is having the necessary cooling equipment and getting ready to deal with a monstrous power bill every month.
Well, that’s a lot, to be honest.
Physical mining can work with right conditions and equipment. The problem is that the average home would not have the conditions to make Bitcoin mining a sustainable endeavor. This is without considering those who would be challenged with setting up and maintaining mining equipment.
It is for these reasons that professional Bitcoin mining hosting services like VBit Technologies exist.
Hosted Bitcoin Mining
Hosting gear with a professional mining service makes sense for the above reasons. The equipment hosting service gets to take care of the logistics of mining and still get passive income from Bitcoin mining.
This has to be the embodiment of killing two birds with one stone.
Hosted mining is not the same thing as cloud mining. In cloud mining, a person simply purchases some hash rate in a mining pool and receives a share of the cloud mining profits.
For hosted mining, you purchase your mining equipment from an equipment reseller and have the hosting service provide the ideal conditions. VBit Mining just so happens to do both of these.
Also, it is a service that makes Bitcoin mining more palatable for ordinary people. Few people can have the logistical setup to ensure mining Bitcoin is a successful operation. It does not make sense to mine Bitcoin and have much or all of the proceeds of mine go to power bills.
In hosted mining, the service takes care of the purchase, set-up and maintenance of mining equipment. Indeed, you have to pay some money for the initial mining equipment. However, the passive income that a miner generates should make up for this in due course.
Mining with a professional equipment hosting service is a way to bring Bitcoin mining to the Average Joe. There is greater accountability than in cloud mining. This is because a miner owns their mining equipment and can always have it shipped back to them.
Besides, cloud mining operations typically have some high commissions. For a hosting mining service, you own the equipment and know the precise amount of coin mined. There is no difference with a person mining from home, only that you don’t have to deal with the logistics that may make the life of a solo miner hell.
Mine Bitcoin with VBit, a Premiere Hosting Service
Now that the advantages of an equipment hosting service are clear, it is only fitting to mention one hosting service that ticks all the boxes.
VBit Mining has filled this gap. Its founders observed the need for an equipment hosting service that made Bitcoin mining more conducive for everyone. This company has data centers located in areas of North America with cheap renewable power and natural cooling.
These are the two most important variables in mining Bitcoin, if you have the quality of mining rigs as a constant.
VBit Technologies also has a direct line to leading equipment manufacturer, Bitmain.
Therefore, there is a decent opportunity for everyone who has a desire to explore Bitcoin mining as a means of revenue diversification.
Sign up on the VBit website for a professional hosted mining experience!