Cloud mining is an instrument to mine a digital currency, for example, bitcoin, utilizing leased distributed computing power and without introducing and straightforwardly run the equipment and related programming. Since this type of mining is done through cloud, it lessens issues, for example, support of gear or direct energy costs.
In bitcoin mining we have to take into account many factors related to bitcoin mining. This includes the cost of electricity to power the computer system and cool the air for effective operation, the availability and the price of the computer system, utility bills like internet rent and something called difficulty in mining. The difficulty is associated with the number and power of bitcoin mining machines which in turn depends on how the price of bitcoin will impact potential rewards. Cloud mining makes these mining difficulties so much easier. Thus, mining can either be shared or rented mining where the computers installed in favorable locations are rented and are used for mining. The mechanism of cloud mining requires no installation; instead, the hardware runs directly on the host premises. As of today, Bitcoin cloud mining in India is mostly done by using rented cloud computing power available in free electricity or colder countries.