Binance ventures into crypto cloud mining

Binance has recently decided to venture into the cloud mining world after launching a group of BTC mining products.

No more hardware for miners

Cloud mining typically means BTC miners do not have to purchase and maintain the expensive equipment required. The company offering cloud mining is known as a third-party service provider.

Users must only lease a mining contract, buy hash rates (hash power), and begin accumulating mining rewards from Binance’s pool. The mining products offered by Binance feature varying durations and electricity fees.

Binance has joined other cloud mining sites, including iBit, Binance, ECOS, StormGain, Hashing24, and Nicehash. As of 2021, the U.S., China, Russia, Iran, and Kazakhstan were declared as the top crypto-mining states.

Google Cloud also started offering mining services in 2021. However, they do not offer a free trial; you have to obtain Google’s initial written approval before accessing their mining service.

Stormgain, established in 2019, is multilingual and features an easy sign-up procedure. Its sophisticated anti-fraud engine is among its best characteristics.

Nicehash platform is more of a hosting as a service and a marketplace. Miners can select the amount of hash they want to buy, the time, and the amount they can pay. 

Is BTC mining profitable?

As with any investment that offers high risks, bitcoin mining does have high returns if you can afford a decent mining contract or the best equipment. However, small-scale miners should manage their expectations, especially because many institutional (large-scale) investors and private miners dominate the industry.

BTC hash rate at ATH

Bitcoin’s hash rate typically represents the number of calculations achieved in a second. The computing power (hash rate) required for the Bitcoin network reached an all-time high earlier last week at 320 EH/s, a 10% increase since the start of February and a 44% increase since December 2022.

At the time of writing, Bitcoin’s hash rate is 293.21M, a decrease from 299.63M in the last 24 hours.

Such a significant rise in hash rate can be attributed to the increase in the uptime of miners in the U.S. This upsurge in Bitcoin’s hash rate also coincides with the increase in bitcoin’s price, which experienced a steady rebound mid-Feb despite the prevailing macro uncertainty.