Bitcoin mining involves consumption of an excessive amount of electricity and the necessity of constant hardware supervision. Both, mining with personal hardware and Cloud mining, are subject to the maintenance cost.

Cloud mining, which is rapidly gaining popularity, is considered to be one of the most profitable ways of crypto-mining, and in this case the maintenance fee is distributed among the miners according to their share of the mining power. The maintenance costs can only be charged if the user owns cloud-based mining power, and it is being charged for the sole purpose of covering electricity and servicing expenses. As the mining difficulty increases, the mining processors require more hashing power to mine Bitcoins, which subsequently implies higher electricity consumption. Therefore, cloud mining services are always on the look out for competitive electricity providers offering better and cheaper electricity terms.

In order to guarantee the most profitable mining, cloud mining providers have to establish co-operation with the most beneficial electricity contractors. In addition, the maintenance cost includes servicing of the data centres, the security of which is highly prioritised. As the first cloud mining provider ever, CEX.IO takes care of the whole mining process for the GHS owners, and for that reason, the holders of such assets must cover the cost of electricity, upkeep and hardware replacement. The maintenance costs depend on a variety of factors, but mainly on the agreements with the electricity providers and, of course, on hardware, which should be according to the latest technical characteristics. Throughout 2014 CEX.IO lowered the maintenance costs twice in order to make sure that users have the possibility to mine Bitcoin in the best environment available on the market. The maintenance cost is deducted from the cloud-based GHS account straight after a block has been mined.

By Kateryna Iesypenko for CEX.IO