From gaming to crypto: How high-performance hardware found a new calling

Mining rigs are generally expensive, while the expenses are further increased by cooling costs and sky-high electricity bills. What if you could mine without any of these? As good as it sounds to be true, it is actually happening, with subscription-based mining machines. You need not take the usual headaches that you generally take for mining as you simply subscribe to mining services. Mine without the hassle and costs of purchasing expensive hardware! Let’s understand whether subscription-based mining is here to stay or is just a passing trend.

How this works?

Get ready to see the traditional mining model flip at its head with the subscription-based mining model. With this model, you can rent the mining power from a large mining farm that has expansive operations. Sounds easy, right? No need for purchasing of expensive hardware or hassle of maintaining those expensive mining rigs. Everything is handled by these mining companies, as all you need to do is pay a recurring fee and get a share of your mining rewards from the firm.

Just like cloud computing service, which allows you to rent your computing resources, these subscription-based mining farms help you borrow mining power. Massive transformations have been noted in the software and entertainment domains with this model. So, what do you think about the crypto mining industry? The model is set to change this industry as well!

Why are people turning to this model?

Do you own a mining rig? If you do, you must know the cost of one! If you don’t know, then a basic ASIC miner or a GPU rig can cost you extremely high. High enough to drain your savings and break the bank. Moreover, reaching breakeven is a difficult task, especially, when you are not making any profits. Quit worrying about upfront, maintenance and electricity costs with the subscription-based mining model, which gives you an easy entry point.

You need not have any technical expertise to mine using the subscription-based model. Let’s face it, not all are hardware experts! Without the desired hardware knowledge, you might face difficulties in setting up and optimizing your mining rigs. With subscription-based mining all these unnecessary burdens are gone! Just sit back and relax and let the mining farm do all the tasks for you!

Environmental impact is one of the drawbacks of crypto mining, as it faces constant criticisms owing to the same. Cheaper and cleaner energy is involved in the operations of large-scale mining farms, as they are often located in remote areas. Therefore, subscription-based mining is a better option as it reduces the carbon footprint of mining and ensures higher levels of sustainability in the long run.

Just upgrading your subscription will give you the license to mine more. Sounds like great scalability and flexibility, right? Subscription-based mining operations allow you higher levels of scalability and flexibility, as you can easily upgrade your subscription to mine more. You are not stuck with any kind of expensive hardware even when you quit mining! No hassle if you are not making enough profits, just cancel your subscription!

The drawbacks

Did you think that there won’t be any risks of subscription-based mining? There are! Let’s understand a few risks that can be associated with subscription-based mining.

Firstly, there are immense profitability concerns associated with this model, as multiple factors are involved. Network difficulty, coin prices, electricity costs and more, there is an endless list of factors that you need to consider when using a subscription-based mining model. As an individual miner, owning your own rig, you could have easily neutralized some of these factors, but with this model, you are completely dependent on the mining farm itself!

Scams abound in the world of crypto mining and with mining subscription services, this has been a recurring issue. Have you ever heard of one? There are subscription-providers, who promise you immense returns but disappear when the actual time comes. Besides, hidden fees and unfair payout structures are also alarming problems that you might face with the use of subscription-based mining services. Always make sure that you conduct thorough research before purchasing a subscription.

Performance optimization can be an issue, as you don’t have any control over what coins are being mined and when to upgrade the mining process. You are completely at the mercy of the provider with the use of a subscription model. When they switch coins or change their payout policies, you have nothing to say!

There are major variations in mining regulations across the globe. There could be legal challenges if you availed a subscription-based mining model in a country, where the laws don’t permit the same! Imposition of heavy taxes, ban on certain mining operations and introduction of stricter licensing requirements are some common steps taken.

The future

Subscription-based mining models have a greater relevance in the current times. With lower barriers to entry and reductions in technical complexities, an average person can access and take part in mining activities. Will it completely replace traditional mining? No, it can’t!

Owning a mining rig is more enterprising for a large chunk of miners even today, as it ensures greater control over mining activities. Even though the number of individuals opting for subscription-based mining is increasing daily, there are still a large number of miners who prefer their own rigs. The future therefore, will likely see a mix of both models!

Innovation is a must for crypto mining companies to survive in the future. In the future more hybrid models might spring up, completely changing the crypto mining space. With the advent of AI, things are looking even more volatile. The shape that the industry will take is unclear.

Final thoughts

Both subscription-based models and owning mining machines have their own perks and disadvantages. Subscription-based models offer a greater flexibility and scalability, while reducing a lot of costs involved. However, it also results in overdependence on the subscription providers, which can be a cause of concern. The future might seem unclear but possibilities of a hybrid model or coexistence of both models is there! Which model will you choose?