Cloudmining Part 1: A market overview for users
Cointelegraph sought to deliver a review of the major cloudmining providers on the market today, presenting all the relevant information necessary to aid users in their choice.
When it comes to engaging in Bitcoin cloudmining, there has been a lot of hype but little entry-level information generated for the average user.
As the concept of mining Bitcoin becomes more and more well-known as a concept, many more consumers are looking into the idea. However, with difficulty at its current level, the expense associated with hardware purchasing, as well as the mining process itself, is off-putting, and so cloudmining is becoming the natural choice for many new parties today.
The infrastructure surrounding mining, especially hardware manufacturers and mining pool operators, has received mixed publicity in recent times. With this in mind, Cointelegraph sought to deliver a review of the major cloudmining providers on the market today, presenting all the relevant information necessary to aid users in their choice.
Nine companies are under review: PB Mining, Eobot, MineOnCloud, CEX.IO, Genesis Mining, BitcoinCloudMining.com, Cloudhashing, Pacific Hashing and Cointerra Mining.
Information gathered by Cointelegraph concentrates on specific areas including legality, security infrastructure and experience, as well as regional usage where given. The last parameter is important to consider, as a provider whose audience is based in a country different to that in which it is registered must consider the legal implications of operations in both countries.
The scores themselves will be used for each area to determine the overall highest placed provider.
Pbmining.com commenced operations in January 2014, and has additionally been selling Bitcoin mining hardware since spring 2013.
Location and legal info:
Originally based in Saskatchewan, Canada, most operations have now been moved to Iceland. PB Mining further tells us that while registration details were available on the website initially, these were later removed for reasons of heightened security.
Canada recently introduced laws which required Bitcoin entities to register with financial regulator FINTRAC or face being ‘de-banked’. However, operations for PB Mining remain unaffected at present.
A significant source of traffic for the service is generated from the Mexican market.
PB Mining does not offer two-factor authentication, and it does not permit certain special characters often used to make secure passwords. However, as its mining rewards are automatically sent to an external address, funds are not stored on the site and therefore cannot be stolen.
Mining contracts are fully insured against loss should any of the mining equipment malfunction under any circumstances.