Genesis Mining allows users to participate in cryptocurrency mining without the hassle of buying mining equipment and maintaining it. However, when you do the math, it turns out that investing with Genesis Mining will most likely lose you money in the long run.
In short, cloud mining is a term describing companies that rent out mining hardware and mine for you. You split the profits with them (on top of paying them a fee) and avoid the need to buy and maintain expensive mining equipment.
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The idea of cloud mining is very simple: Instead of spending thousands of dollars on mining hardware and all the necessary gear to support it, you can lease everything from someone else and keep the profits to yourself.
Through optimizing mining for GPUs, Ethereum developers have ensured that mining would still be possible for individuals with home-owned computers and rigs even after strong network growth and an increased difficulty rate. Further, these measures help to keep the network as decentralized as possible. Still, manufacturers have found ways around these limitations, as evidenced by specialized AISC-mining devices for Ethereum like the Bitmain Antminer E9 or the Innosilicon A10 Pro.
Nevertheless, mining is certainly an interesting option for individuals with access to unused GPU processing power that want to make some extra money. But with PoS just around the corner and ether staking already available, staking is certainly the simpler, less hardware-intensive, more future-oriented way to earn ether.
As mentioned, ether mining is soon expected to come to an end. Ethereum has started the development to switch from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism years ago. According to the Ethereum Foundation, the switch from PoW to PoS can be expected to happen in Q2 or Q3 of 2022. For miners, this fundamental shift makes them obsolete, as mining in the form of solving cryptographic puzzles is no longer required for PoS.
Instead of mining ether, users can now stake their ether to earn staking rewards. Investors can either stake ether by running their own Ethereum validator as described here, which requires a minimum of 32 ether. Or they can stake any amount of ether with a staking service. Many crypto exchanges like Coinbase or Binance already offer ether staking. Also, staking is offered by decentralized services such as Lido or Rocket Pool.
Miners wanting to keep using their hardware after the switch can direct their computing power to other blockchains that are still working on a PoW consensus mechanism. The easiest option is Ethereum Classic (ETC), which runs on almost the same hashing algorithm as Ethereum, so it supports the same hardware. All that miners have to do is switch from an ETH to an ETC-mining pool.
Mining Ethereum in a pool is the simplest and quickest way to get started. In pool mining, you join forces with other individuals. All the miners joining a pool agree that if one of them solves the cryptographic puzzles, rewards will be split among them according to the hashpower provided. The size of the pool, measured in hashpower, determines how many blocks the group finds on average.
There are different types of ether-mining software. Go here to download the latest version of Claymore dual miner or find software you like. To set up Claymore dual miner, follow the step-by-step instructions provided in this Tutorial (point 3.3).
While setting up your mining software, you will have to decide, which mining pool you want to be a part of. There are many choices, e.g., 2Miners or Ethermine. Before settling for one, make sure to check the pool size, minimum payout, and the pool fee. 2ff7e9595c
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