What is Mining as a Service (MaaS)?
Let's find out Mining as a Service (MaaS) meaning, definition in crypto, what is Mining as a Service (MaaS), and all other detailed facts.
Mining as a Service (MaaS), also known as cloud mining, provides users with the possibility of mining crypto without dealing with physical hardware. You would need to invest in powerful mining equipment and mining pools if you want to mine crypto. Cloud mining is one of the options if you don't want to make the investment but still want to be a part of such an exciting market.
You can buy processing power used to mine cryptocurrencies like Bitcoin and LiteCoin through cloud mining. The coins can then be exchanged for fiat money or another cryptocurrency. This feature provides you with some cool benefits:
- You have complete control over how long you want to mine and can turn it off at any moment.
- Since it's a pay-as-you-go plan, you won't have to worry about large upfront fees because you'll be charged based on how much processing power you utilize.
- Since the service provider maintains all of the hardware and software required for mining, you won't have to worry about downtime.
Some cloud mining businesses even provide contracts for the coins you've mined that will be delivered in the future. You can lock in an exchange rate this way ensuring your returns, without the risk of hardware or software failure.
However, cloud mining also has some drawbacks:
- The first issue with cloud mining is that the expected profit fluctuates continuously because mining isn’t stable. Cryptocurrencies are extremely volatile, and their value can drop dramatically overnight. Even if you've been promised a certain amount of money every day, there's no assurance you'll get it in full or at all.
- Because of the nature of their business, cloud mining businesses must rely on outside sources for hardware and maintenance. The issue is that most cloud mining businesses do not disclose who their service providers are or other vital information whatsoever. This makes determining whether or not you can trust them pretty difficult.
- Cloud mining services have been known to go offline unexpectedly, leaving all of their customers without compensation or explanation. Many platforms claim to offer high-yield investing opportunities, but they might not be genuine.
- A cloud mining service doesn't have the greatest mining algorithm and the users aren't allowed to pick their own algorithm. This means that, regardless of your preferences, you are obligated to mine what the company chooses for you. Even if you do mine coins that you are interested in, there is no guarantee that you will ever see those coins in your wallet because of the difficulty rate that is involved.