A type of mining where people can pay to rent computer power from someone else in the cloud to mine Bitcoin or other cryptocurrencies. This is done by selling mining contracts. Cloud hashing is also the name of a business which offers this service.
Cloud hashing or mining makes the activity of mining cryptocurrencies far more accessible to the average person, as it does away with the excessive hardware costs, maintenance costs, and electricity costs.
While it isn’t as profitable as hardware mining might be, it is also far simpler and more efficient for those that have neither the space, resources, nor time to devote to their own hardware mining rig.
There are a number of cloud mining companies offering their services, and one must be careful when choosing a cloud mining service, as some have been found to be fraudulent, either through outright theft of customer funds, or because they aren’t paying out what they should be based on customer investment into the cloud service.