Mining Bitcoin Solo vs Equipment Hosting ServicesShreya
The Bitcoin mining industry is growing at a rapid pace, with more and more miners joining the profitable business. If you’re also one of the new miners looking to get into the business but cannot decide if it would be better to mine independently or join an equipment hosting service, you have come to the right place.
As a general rule, people prefer to use a service that not only manages everything for them but also does it more efficiently and cheaper. However, to understand what’s the core difference between mining Bitcoin solo and with an equipment hosting service, let’s first understand how Bitcoin mining works.
What is Bitcoin Mining?
Cryptocurrencies have provided a robust alternative to the traditional financial ecosystem and have become increasingly popular since their inception over a year ago. However, cryptocurrencies are notorious for their volatility, especially Bitcoin, which undergoes one of the most exorbitant price fluctuations. This volatility often discourages investors from participating in lucrative opportunities. But luckily, there is more than one way to become a part of the cryptocurrency industry.
One of the safest and most profitable to own cryptocurrency is through mining. Bitcoin mining is the process by which new blocks on the blockchain network are generated to record new transactions. Miners require mining equipment to mine new blocks by solving complex equations and, as a result, receive a predetermined amount of cryptocurrency and a part of the transaction fees.
There are generally two ways to mine cryptocurrencies – solo or with equipment hosting service. Both ways have their own set of advantages that will be discussed below to help you make an informed decision.
Mining Bitcoin Solo
The Bitcoin mining complexity has increased tremendously and now requires ASICs miners to generate a profit in the competitive industry. These miners can be installed in a ventilated room with a constant power supply to start mining.
If you are a solo miner, all the rewards earned by you for creating new blocks will be yours. However, the rewards decrease periodically as the total supply of Bitcoin continues to reach the hard cap. Moreover, mining Bitcoin solo will require you to put in a lot of investment for the initial setup that includes a cooling system and a monthly electricity bill apart from the cost of an ASIC miner.
Mining Bitcoin solo can work effectively if you utilize renewable and cheap power sources and have ample space to operate a miner or set of miners. However, if you do not have access to such resources, your profits will be minimal, and it will take you considerable time to even recoup your investments.
Using a hosting service such as G2Miner can be more profitable as they have a large farm setup that can compete with the competition in the industry while taking care of everything for you.
Using an Equipment Hosting Service
Hosting your miner with an equipment hosting service such as G2Miner makes more sense as these services can take care of all the logistics and maintenance operations for you. Hosted mining is different from cloud mining as in cloud mining, you purchase a share of hash rate from a cloud to receive a share for that portion only.
In hosted mining, the user must purchase a miner and host into mining farms offered by the service provider to earn a passive income without having to manage things manually. This type of Bitcoin mining is easier to manage as the users need to only provide the initial investment and receive the profits directly in the digital wallet. There are several equipment hosting service providers such as G2Miner.
G2Miner is an expert Bitcoin mining machine procurement and hosting platform that makes Bitcoin mining easier for everyone. It is a Bitcoin mining-first company on a mission to promote the decentralized growth of hash power. The company supports the innovation of computer processing technology and strengthens network security by helping miners in the procurement of mining hardware and hardware hosting.
G2Miner currently operates using three mining facilities and serves over 200 clients all around the world. The project has 50+MW onboarded farms and has sold over $20 million of equipment to date. The team of G2Miner consists of more than 30 members with over five years of skill and experience in crypto mining machines repair, upkeep, and refurbishment services.
The expert team equipped the project to offer a one-stop solution that includes the arrangement of transport to pick up and transport back the mining hardware to the refurbishing centre. The refurbishing center specializes in power supply recovery, diagnostics & checks, and refurbishing & repacking of the devices.