Bitcoin can’t be separated from mining and transaction since its birth. Mining is still a blank field for most investors. Investing in mining can be considered as investing in futures of bitcoin, just like any products’ futures, functioning as spot hedging. However, the entering threshold of bitcoin mining has raised a lot due to its specialty, thus cloud hash exchange has become a source of profit. Several pictures below will help investors to understand the existing cloud mining exchange platforms.
1. Profile of cloud hash exchange platform
Currently, the operating cloud hash exchange platforms in China mainly include pow88, hashnet and adminbtc while foreign platforms including CEX.IO、KnCMiner and PBMining. As shown in the form below, each one differs from another. The hashing power sold by several Chinese platforms has no contract period. The hash product will be removed when its theoretical benefit is lower than the maintenance fee. While KnCMiner and PBMining have 6 months and 5 years contract respectively. When asking the staff of above websites about how to guarantee the benefits of their users within contract period, no exact answers were given and the only reply was that benefits during the contract period would be 100% returned to users. Digcoin and ourhash, these two platforms are still under beta test, no specific details yet.
2. Sales price of hashing power
Making a crosswise comparison of the hashing power’s price in two dimensions of BTC and RMB, we can see that adminbtc and pow88 have the lowest hash power selling price, 0.0007BTC / GHs and 0.00104BTC / GHs respectively which equal 2.76yuan/GHs and 1.86 yuan/GHs. The prices of these two platforms are that of secondary hashing power trading market which will change due to the actual trading depth. However, the price of foreign hash exchange platforms is above 0.0015 BTC/GHs, higher than Chinese ones.
3. Mining efficiency and hashing power maintenance fee
Mining efficiency and hashing power maintenance fee are important indicators to measure hash exchange platform. The published data of six exchange platforms shows that KnCMiner and PBMining have no maintenance fee(including electricity fee). That’s also the reason why it adopts fixed term contract, for they want to cover the maintenance fee of a fixed period by putting sales price higher. Pow88 has the lowest maintenance fee among the other four. Its daily maintenance is 0.0192 yuan per GHs, which can enable to extend the users’ hashing power life cycle to a certain extent. As for mining efficiency, Adminbtc is the only one reaches 87.5%, except for 12.5% maintenance fee, electricity cost shall be deducted at the same time. The other ones are 100%.
4. Mining rigs entity, Hash financing and hash secondary market
For a hash exchange platform, besides purchasing official hashing power, there are other ways to provide more guarantees for investors. Such as entity mining rig support, hash financing and secondary trading market.
The support of mining rigs entity is of great significance, which is essential for the survival of platforms selling first-hand hashing power. Currently, Pow88, hashnest、CEX.IO、KnCMiner and PBMining do have their own entity mining farms. And Ourhash sells no first hand hashing power but allows users to trade their own freely on its platform.
In addition, secondary trading market is an important guarantee for users to liquidate their hashing power. The current platforms offering secondary trading market are pow88, adminbtc and CEX.IO. Price is determined by both buyers and sellers markets.
What’s more, pow88 provides users with a project called joint mining. It actually has the function of financing hashing power and BTC according to my own experience. Ordinary investors can buy hashing power with BTC in secondary trading market and achieve some profits, the leverage of borrowing BTC is 2 times. For the owners of small and medium-sized mining farm can obtain double hashing power lending and sale that in market, to help increase the liquidity of mining rigs entity.
5. Comprehensive comparison
Taking 1THs hash for example:
The indicators of Pow88 and KnCMiner are looking good. Opening KnCMiner’s website is a bit slow in China due to its server abroad, and full page in English, people may have certain difficulties to read. Investors with better English are suggested.
The biggest advantages of pow88 are easy to operate and lowest maintenance fee. The project of joint mining is also an innovation of the industry, which allows small and medium-sized miners and investors borrow out certain hashing power or BTC by using a small amount of deposit and brings investors more profit space.
Notably, the above just help us to understand the existing cloud mining exchange platforms from a few aspects, and the data used in the article just the data during the writing time. As a whole, actual data published by the site shall prevail. How to choose, investors should consider carefully by yourselves. Under the circumstance of prolonged low bitcoin’s price, there is risks in hashing power investment.