Shamining is a Scotland-based cryptocurrency cloud mining company that launched in 2018. The service enables users to purchase contracts for hashpower to mine Bitcoin, Litecoin, Ethereum and other cryptocurrencies remotely through Shamining’s facilities.
The company operates mining farms containing ASIC and GPU hardware. Instead of miners buying their own equipment, Shamining handles the physical infrastructure and miners share proportional profits based on their contracted hashrate allocation.
How Shamining Cloud Mining Works
Here is an overview of how Shamining’s cloud mining service functions:
- Users first create an account on Shamining’s website and deposit funds to purchase mining contracts.
- Multiple algorithms are available such as SHA-256 for Bitcoin and Scrypt for Litecoin.
- Contracts have durations ranging from 1 to 3 years, with the option to extend for a fee.
- Once purchased, the proportional share of hashpower mines cryptocurrency continuously on the customer’s behalf.
- As blocks are found, mined coins are allocated among customer balances daily based on hashrate share.
- Mined cryptocurrencies can be immediately withdrawn or kept in the account to accumulate.
- Referral bonuses paid in hashrate boosts are awarded for inviting new users.
Types of Cloud Mining Contracts Offered
Shamining sells the following types of cloud mining contracts:
- Bitcoin – SHA-256 algorithm measured in GH/s.
- Litecoin — Scrypt algorithm measured in MH/s.
- Ethereum – Ethash algorithm measured in MH/s.
- Monero – Cryptonight algorithm measured in H/s.
- Dash – X11 algorithm measured in MH/s.
Pros and Cons of Shamining
Some benefits and drawbacks of Shamining cloud mining include:
- No need to purchase mining equipment.
- Quick and easy setup process.
- Automatic conversion to BTC payouts.
- Shamining handles maintenance.
- Established company with track record.
- Contracts eventually expire.
- Profitability decreases over time.
- Opaque fee breakdowns.
- Limited miner dashboard features.
- Subject to volatile crypto prices.
Factors That Impact Profitability
Key variables that determine the profitability of Shamining contracts include:
- Cryptocurrency prices in USD terms.
- Rising blockchain mining difficulty.
- Energy, maintenance and equipment costs.
- Length of contract and hashing power.
- Shamining’s service fees.
- Payouts converted to BTC from other coins.
Careful modeling of the above factors is required to project expected returns and contract breakeven analysis.
Shamining offers a simple way to gain cryptocurrency mining exposure without operating equipment directly. However, lack of transparency and control over mining are common downsides of cloud mining services. Given the contracting revenue model, serious miners often prefer operating their own hardware or joining decentralized mining pools. Thorough due diligence of projected profitability and contract terms is advised before purchasing any cloud mining service like Shamining.