At Stratumsphere our customers are often skeptical of hashpower rental, and rightfully so, because the industry has had it’s fair share of less-than-stellar participants. Yet the market for hashpower continues to grow with the Bitcoin hashrate growing roughly 40% during the month of August alone leading to industry consolidation and increased focus on scaling and automation.
Why do consumers and institutional customers rent hashpower?
Renting is a business model that’s been around a long time. Industries, equipment, and details change but many of the reasons consumers and businesses alike choose to rent have remained unchanged:
- Cost – Hashpower rental has much lower upfront cost. There are no buildings, hardware, cooling, or employee costs. Get started with as much or as little as needed.
- Speed – Equipment can be rented and working almost immediately whereas building or buying your own infrastructure can take weeks, or even months to shop around, place an order, receive, install, and configure. On an industrial scale the wait can be even longer.
- Flexibility – The obligation ends at the end of the rental contract, there is no equipment to liquidate or facility to exit. With automation as is provided by Stratumsphere.io rental contracts can be any length the provider chooses.
- Convenience – Equipment is professionally installed and maintained in a data center environment where it is monitored and managed 24/7. You don’t have to spend time configuring, installing or updating hardware, software, power, or networking for your miners.
- Security – Professionally managed data centers have robust security protocols that can prevent security breaches and other network attacks.
- Cost Averaging – Mining coins over a long period of time allows you to effectively dollar cost average your purchase cost.
Ultimately customers will choose the option that represents the best value for them but if cloud infrastructure is any indication then consumers, businesses, and institutional customers may well see the value in professionally managed hashpower rentals.