Cloud Mining

Cloud Mining

Cloud Mining describes the abstract concept of computers hooked up to the network and "mine" for new crypto currencies.

 

Genesis Mining featured in Huffington Post

It is quiet costly run a mine. Keep in mind that miners not only have to purchase mining equipment (ASIC miners), i.e. high CPU or GPU computer hardware such as modern graphic cards, but you also have to maintain it.

So they need to pay for the upkeep of the mine, mainly electricity to power your mine. Moreover, they need to cool it down, and purchase and install fans or Airconditioning depending on your location. In warmer climates, it is obviously more costly to do so than in colder climates. In addition, they also need to pay rent, secure the location.

In order to finance their expansion, mining companies may offer to rent out their mining equipment to individuals over a certain time period. Thus, if you buy a cloud mining contract, you don't have to deal with all that hassle and upkeep the mine yourself.