Hey guys, what's the difference between Pool and Cloud mining ? I hear many ppl saying like "Cloud mining is not worth it" etc, but they still are using pools which is exactly the same as cloud ( many people mines together and shares based on their performance ).
There's a huge difference between the two:
- pool mining => lots of seperate individuals who try to solve blocks together using their own hardware. Low-diff shares are used to measure how much work each individual performed. This statistic is used to divide the block reward when the pool solves a block
- cloud mining => you pay a (usually anonymous) organisation a ton of BTC, in return they promise to use ASIC's they own for mining BTC, and promise to give you part of the mining income they receive when running their own miners...
Mining on a legit pool is a smart thing to do, unless you have thousands and thousands of latest gen ASIC's... Cloud mining is usually not worth it (in my opinion), and since cloud mining requires you to pay for hashrate in advance, at least 99% of the cloud mining companies are actually non-mining ponzi's. Even legit cloud mining companies give you 100% of the risks for a small percentage of the profits...
