Is Dash Cloud Mining A Good Investment In 2018? A Big Question In Miner’s Mind

Cloud mining remains to be an attractive option if anyone is interested in investing in Dash currency. Cloud mining enables the users to purchase hashing power. This hashing power is purchased from hardware in data centres in Cloud mining. This purchasing of hash power may be done without having the hassles of managing hardware. This is also free from the hassles of managing electricity consumption, software or other related issues with mining cryptocurrency. Cloud mining saves the user from troubles of running a miner of her/his own. It helps in bringing more rewards than running a miner. Cloud mining is a big help to those miners who are not technically sound.

Dash mining requires the miners to have a Graphic Processing Unit or Application Specific Integrated Circuit for profitable mining of the cryptocurrency. Application Specific Integrated Circuits are generally sold out and requires certain amount of technical knowledge to operate or maintain it.

Cloud mining is also a unique way to mine cryptocurrency with a low entry cost. It also provides minimum amount of risk and least expenses to the miner. Cloud mining provides facilities to the miners which are not found with traditional mining models. Traditional mining models have specialised hardware, requiring maintenance and configuration to be done by highly trained technicians. Cloud mining provides the miner the opportunity to start mining immediately after she/he purchases a mining contract. Cloud mining also provides the miner the opportunity to earn extra revenue with minimum risk and fast pay outs.

Dash mining uses the X11 algorithm. This algorithm is a chained hashing algorithm. It uses eleven different algorithms. These algorithms are chained or linked together. That is why it is called a chained hashing algorithm. This chained hashing algorithm is used for the calculation of Proof of Work, that secures the network to Dash cryptocurrency. This use of eleven different algorithms increases the security of the coins from brute force attacks, among other things. A multi hash system provides protection against risk of failure, because if these eleven different algorithms chained together is to fail, all algorithms must fail together. The chances for such an incidence is close to NIL.

This cryptographic hash was exclusively designed for specifically cryptocurrencies. So, it is one of the most prestigious and sophisticated cryptographic hashes that is being used. This works equally well in both GPU mining and CPU mining. The first coin to implement it was named Darkcoin which has been since renamed as Dash.

Dash Cloud Mining profitability and Return on Investment-

A number of different factors decides the investor’s profitability. These can be termed as-
1.Dash coin market price.
2.Difficulties in mining.
3.Price of Mining Contract.

The miner needs to constantly compare the amount she/he is paying as rent of the hardware. This needs to be compared with the coins she/he is earning in return.

The Dash coin market price is not predictable. Similarly, the mining difficulties are also unpredictable. The increase in Dash price would invite more numbers of miners to join in mining and this would result into increase in difficulty in mining. There are calculators providing information on the miner’s future revenue earning. But no calculator can provide the miner with a cent percent accurate prediction regarding revenue earnings.

Disadvantages with Dash Cloud Mining-

There are number of disadvantages with Dash Cloud mining, but the main disadvantage is the rented hardware. The total risk of Dash Cloud mining being unprofitable depends on rent of the hardware as the miner needs to pay the total rent in advance. This is the most prominent reason as to why most of the Cloud service providers are selling mining contracts in the first place instead of keeping profits for themselves.

This is a major risk towards unprofitability in cases of either the coin price getting low for one reason or other or new equipment or hardware with superior performance is installed. The cloud mining service provider tends to shut the power off in the miner’s device to turn it off in case of higher power consumption in comparison to miner’s mining rewards in return. The hardware belongs to the Cloud mining provider, preventing the miner from selling it after her/his renting contract ends.

Another major risk lies in instability of Cloud service provider company. If the company disappears without informing anyone, the miner has everything to lose. Cloud service provider companies start as a service providing company with many promises but refuse to change and upgrade with time. These Cloud service provider companies must be reliable to provide profitable Dash Cloud mining services to its clients.

Is Dash Cloud Mining a Good Investment in 2018?

Considering all pros and cons, it can be stated with determination that Dash Cloud mining is a good investment in the year 2018. Profitability may vary depending upon the changing situations, but Dash Cloud mining is the investment of the future, relatively safe and hassle free. It may be time and power consuming in the beginning but will yield returns in time to come. All one needs is patience and perseverance to find Dash Cloud mining a very good return giving investment.

 

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