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3 sats \ 1 reply \ @CruncherDefi 11 Apr \ parent \ on: How legit is renting hash power? bitcoin AskSN bitcoin_beginners

I don't get it. Why would they rent the hashrate to you and let you profit, instead of cutting of the middleman (you) and take the profit themselves?

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63 sats \ 0 replies \ @south_korea_ln 11 Apr

You buy the hash rate from big mining farms. In essence, you are providing them with a loan (in Bitcoin), they pay you back in hashrate. For them, it may be useful at times to get paid upfront, even if it costs them a percentage. It helps stabilize their income in a notoriously volatile environment.

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