On May 4, crypto derivative exchange Bybit launched a new service – an Etereum cloud miner. The company says this new Ethereum cloud mining service could be your best shot to mine ETH with minimal investments and earn sizable profits.
The relatively low entry price of $100 and flexible 7-, 21-, and 42-day plans have subsequently grabbed the attention of many existing and would-be cloud miners.
In this quick review today, we’ll be sharing our early impression of Bybit’s Ethereum cloud mining platform. While there, we will also try to answer whether or not it makes the right choice for you.
Just in case you are a newbie to cloud mining, here is a brief overview of how it works.
Editor’s note: Cloud mining is a highly speculative investment and there are many shady cloud mining providers out there. Some of them are outright scams while others promise unrealistically high returns to unsuspecting users. Therefore, it is very important for you to carefully evaluate the legitimacy of a cloud mining platform before investing.
Cloud mining: How it works
Cloud mining is basically a service provided by mining farms that enables users to mine cryptocurrencies without having to spend a fortune on expensive mining hardware, electricity, and associated infrastructure. For those out of the loop, mining farms are data centers dedicated to cryptocurrency mining.
As the name itself implies, cloud mining is the process of using the power of cloud computing to mine cryptocurrencies. With cloud mining, you pay a third party (a mining farm) to do all the hard work for you.
You can either lease the mining hardware from these farms or rent a pre-specified amount of hash power. Here, hash power represents the power of mining hardware in the units of Th/s and Gh/s.
The service provider is responsible for choosing the optimal hardware settings, conducting regular maintenance, and choosing the right pools. Because of this, even an amateur with no technical knowledge and limited funds can straightaway jump into cryptocurrency mining.
It is important that the service provider you choose has the resources to invest in top mining hardware and the expertise to optimally use them. Ideally, these farms should establish their mining facilities in a location with a relatively cooler climate and cheap electricity. These are important factors considering that they can make huge differences in the overhead cost of running the mining hardware.
If you want to learn more about cloud mining, you can refer to BeInCrypto’s detailed guide on the topic.
Now that we have the basics covered, let’s quickly go through why the demand for Ethereum cloud mining seems to be on the rise — relatively speaking.
Why Ethereum cloud mining is on the rise in 2021 despite volatility
May 2021 was particularly volatile for the crypto market. Ethereum, Bitcoin, Dogecoin, and pretty much all top coins saw wild price swings throughout the month. In fact, at one point the ETH/USD pair retreated as much as 60% from the all-time high scored just weeks earlier.
Despite such high volatility and the subsequent decline in the ETH price, the month of May was particularly rewarding for Ethereum miners. Compared to $1.65 billion in April 2021, miners generated a record $2.32+ billion in revenue in May alone.
Experts believe that record transaction fees and record subsidies are the two driving factors that led to this surge. Transaction volume is also consistently on the rise with the rapid growth of decentralized finance (DeFi).
Since most DeFi projects are rooted in the Ethereum blockchain, a surge in DeFi transactions eventually causes the chain transaction volumes to spike too. And not to forget the ongoing craze surrounding non-fungible tokens (NFTs), which has a direct impact on the growth of the Ethereum ecosystem and transaction volumes too.
So, if you thought the recent dip in Ethereum’s value adversely affected mining profitability, that clearly didn’t happen. And with the Ethereum 2.0 upgrade currently underway, most analysts are anticipating the continuation of the broader bullish phase ETH has exhibited over the past few months. If so, the ETH price is likely to go further up over the medium to long haul. That’s more good news for miners.
Why cloud mining though?
First – cloud mining is cheaper and easier to get into. It’s perfect for individuals with limited funds and technical expertise.
On top of that, as the Ethereum 2.0 upgrade is fully deployed, the network will switch from the current Proof-of-Work (PoW) consensus mechanism to the Proof-of-Stake (PoS) model. While the transition will be gradual and happen over time, it will eventually leave ETH miners with very few options.
The GPU miners will have the option to jump ship and start mining other altcoins. Meanwhile, those using expensive ASIC rigs could potentially sell their hardware off and use that money to buy more ETH and start staking.
These factors considered, it doesn’t seem to make much sense to invest in new hardware to start mining ETH on your own. However, as we have mentioned, the switch to ETH 2.0 will be gradual and may initially involve a hybrid model involving both the PoS and PoW models. So, there’s still some time left for you to get into Ethereum mining and reap the benefits if the bullish cycle continues.
And that brings us back to the same underlying logic — if you want to get into Ethereum mining in 2021 and it doesn’t make much sense to invest in new hardware, cloud mining is going to be your best bet.
Why choose Bybit cloud mining?
The trust factor counts. As we have mentioned previously, cloud mining is a highly speculative investment and the industry is full of scamsters trying to rip you off. So you definitely want to go for a miner with credibility — one you can trust with your investment. Bybit fits the bill perfectly on that front.
Bybit is a mid-tier cryptocurrency derivatives exchange that has been around for three years now. It is a moderately popular platform with a sizable user-base and has so far maintained a clean track record. So if you are planning on dipping your toes into Ethereum cloud mining, Bybit is one of the safer options to choose from.
The relatively low entry price barrier is also a big plus. You can spend $100 to sign up and try out the service before investing more capital. You also get several options to choose from when it comes to the mining hardware and hashrate.
Additionally, to make it easier for users to get a feel of the service, Bybit has made available multiple short-term, flexible plans. Depending on your preference, you may choose any of the 7-, 21-, and 42-day plans — this way you can try out the platform for a limited period before deciding whether or not it’s worth your time and money.
How to mine ETH with Bybit cloud mining
The process is very simple. You just have to sign up on Bybit using your email address and head over to the cloud mining section. There, you will find multiple mining configurations and durations to choose from. Just pick your favorite plan, make the payment, and you’re good to go. Bybit will instantly start mining Ethereum, leaving you with only the task of checking your dashboard periodically to keep a tab on your earnings.
Note that Bybit doesn’t require any other details other than your email address. No KYC needed, which makes it the ideal option for privacy-sensitive users.
We have noticed, though, that as of this writing, all the plans are “sold out”. Bybit may soon add more capacity to its Ethereum cloud mining facility to accommodate more users. However, at this juncture, the unavailability factor can be a deal-breaker for many would-be users.
You can check out the official Bybit Ethereum cloud mining page for more details about the plans and availability.