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What Is BTC Mining and Blockchain?

Bitcoin mining involves using your computer to generate and approve several currency transactions. Bitcoin transactions are grouped into blocks. Once a block is solved, the ledger is closed and cannot be changed. That means that thousands of computers are connected online and trying to solve problems. Securing the safety of the info in these blocks demands complicated mathematical equations. The infrastructure is the most powerful computing system in the world – bigger than Google and NASA.

Mining crypto involves computers working to solve mathematical problems that validate digital currencies transfers. The reward miners receive for resolving these equations is a small portion of the cryptocurrency linked with the blockchain they worked on. As the world’s biggest cryptocurrency, Bitcoin holds the most significant number of miners. The consequence of so many miners is that using your CPUs or GPUs is far less prosperous than before.

Cloud Mining Services Solve Issues

So came a different solution to the power problem – cloud mining. Both the government and miners see the benefit of outsourcing the process to third parties. The best cloud mining services allow users to mine cryptocurrencies without having to own the necessary hardware. Platforms such as Coloco mine BTC for you and provide you with several different power and maintenance costs packages to choose from.

Why would you use cloud mining for BTC?

Mining BTC can be costly due to the amount of energy you are using. Suppose you have a desktop computer switched on 24 hours per day and solely dedicated to mining bitcoins. In this scenario, your estimated consumption would be 220 kW. If we stretch it for an entire week and change it into kWh, it comes to roughly 40 kWh per week.

Cloud mining platforms can handle the consumption rates at significant levels. The companies have warehouses of servers that are cooled during the day. With Coloco, you have a choice of four different packages. The more miners you choose, the fewer cents you pay per kWh. These kinds of deals make it attractive for miners to join a third-party cloud platform.