Even with the latest Bitcoin price drop, it seems that Bitcoin mining is only becoming increasingly popular.

Bitcoin mining is the process of using computing resources to mine blocks on the Bitcoin blockchain in order to facilitate transactions and secure the network. Whenever a new Bitcoin block is found on the blockchain, the miner receives a reward of 6.25 BTC.

Typically, one person would struggle to find a block. Instead, people use clever ways of pooling computing resources to mine the blockchain together and then split the block rewards amongst all participants.

However, if you don’t want to purchase expensive mining hardware, there are ways to passively mine that don’t require you to have the knowledge to set up and maintain the hardware.

Here are three great ways to make a passive income through Bitcoin mining.

How to make a Passive Income Through Bitcoin Mining

  1. Copium Protocol – Invest in a passive crypto mining investment ecosystem
  2. Ecos – Mine through cloud-based mining
  3. Compass Mining – Buy hardware and host it in a mining facility

A Closer Look at how to Make a Passive Income Through Bitcoin Mining

1. Copium Protocol – Invest in a Passive Crypto Mining Investment Ecosystem

In our assessment, the best way to make a passive income through Bitcoin mining is by investing in a project that uses cryptocurrency mining to benefit the ecosystem.

Copium Protocol is a cryptocurrency mining investment ecosystem that provides a simple solution to participate in passive cryptocurrency mining.

The ecosystem is a novel and innovative solution for passive mining as it incorporates NFTs, a native platform token, and an established mining facility into one entire ecosystem. It uses the mining revenues from the facility to provide demand for the native platform token, Copium Coin, and then burns the purchased tokens to make it deflationary.

 

What is the Copium Protocol?

Copium Protocol is a multi-pronged blockchain mining investment project that aims to revolutionize the crypto mining investment space. They believe that the industry contains too much technical jargon and is seeking to simplify the process of mining.

The entire project is centered around Copium Mining, a real-world established mining facility in Otago, New Zealand.

This mining facility is unique as it is completely powered by 100% clean, green, renewable energy from Hydroelectricity generated in the foothills of New Zealand’s Southern Alps.

What are the NFTs for the project?

The initial launch phase of the project will see the release of the Copium Protocol Investor Pass. This is a collection of 10,000 NFTs that will be minted on the Ethereum Network during early-mid October.

The NFTs will be sold on the project’s website through a Dutch Auction with a starting price of 3.5 ETH. However, you can secure a spot at a lower fixed price of 3 ETH if you register your interest early on the website.

Investor Pass Miner Copium Protocol

All holders of the Investor Pass NFTs are entitled to the following benefits:

  • A one-time exclusive airdrop of 10,000 Copium Coins.
  • The ability to stake the NFT on the platform for a daily allocation of 10 Copium Coins.
  • Higher interest rates are earned through the Copium Staking platform.
  • Automatic entry to monthly Copium giveaways.

In addition, every NFT holder is also entered into a giveaway to win one of the two Bitcoin prizes available.

So, how does the ecosystem work?

All the funds generated from the NFT sale will be used to upgrade the infrastructure and hardware at Copium Mining.

The company has a successful long-term track record in the cryptocurrency mining industry and is highly respected in the New Zealand mining community. As a result, they can purchase bulk quantities of the latest generation of cryptocurrency mining hardware.

Once the hardware and infrastructure are upgraded at Copium Mining, the daily revenue generated from crypto mining at the facility will be used to purchase Copium Coin from the open market, providing a sustained demand for the token and constant liquidity.

All Copium Coin purchased through mining revenue will be sent to a burn address, removing the coins from the supply. This makes Copium Coin a deflationary asset in which the total supply shrinks, making it much more scarce over time.

As a result, combining a falling supply with a creeping demand will likely cause the price of Copium Coin to rise over the long term.

Staking for higher returns

Copium Coin holders have an opportunity to earn a higher return from their investment through the Copium Protocol Staking Platform.

The team will implement the Staking Platform following the successful launch of the Copium Protocol Investor Pass.

Staking will be a crucial pillar of the entire ecosystem as it allows token holders to stake their tokens for a range of locked and unlocked periods. In return, stakers earn a high APY return on their investment while staking.

The longer the lockup period for the tokens, the higher the interest rate stakers receive on the platform.

Investor Pass NFT holders receive exclusive rates on the Copium Staking Platform. The minimum Investor Pass holder rate is higher than the maximum achievable public staking rate;

Copium Protocol Investor Pass

Therefore, ownership of the Investor Pass is required to maximize returns while staking.

The staking platform is totally non-custodial, so token holders don’t need to worry about handing their tokens over to a third party. Instead, their wallets will be credited with the interest accrued after the staking contract has expired.

Overall, Copium Protocol has created a novel solution allowing users to participate in cryptocurrency mining to make a passive income. Furthermore, the sustained demand provided by the daily mining revenue and the deflationary supply will help all Investor Pass and Copium Coin holders to benefit from Bitcoin mining.

2. Mine through a cloud-based mining platform

Another way to make a passive income through Bitcoin mining is by purchasing mining contracts from a cloud-based mining platform.

Cloud-based mining is the process of renting mining hardware from a platform and then using the rented machines to mine Bitcoin passively. Miners take out contracts from the platform and can mine using the hardware for the entire duration of the contract. Of course, they pay a fee to purchase the contract and get to keep all the BTC mined.

Our favorite cloud-based mining platform is Ecos.

Ecos Homepage

Ecos is an all-in-one investment platform that includes a wallet, an exchange, and a cloud mining service. Its mission is to make cloud mining as seamless as possible, and its infrastructure allows users to start mining with two simple clicks.

Their cloud mining service is powered by their giant data center, filled with one of the top-rated Bitcoin mining machines called the Bitmain Antminer S19j Pro. Users don’t need to worry about setting the hardware up or connecting to mining pools because Ecos handles everything from their end.

The electricity for the hardware facility is provided by Hrazdan TPP, which has signed a direct agreement with Ecos to offer a preferential rate for electricity. Furthermore, the company is located in the Armenia Free Economic Zone, meaning they do not have to pay income taxes, VAT,  import and export, or property taxes. As a result, Ecos can keep their cloud-based mining contracts very low as they pass their savings on to their customers.

After a user purchases a mining contract, they start mining Bitcoin instantly. They receive direct payments to their wallets every day. The contracts start from as little as 24 months and range up to 50 months.

Users can monitor and track their daily mining activities on the go through the Ecos android and iOS mobile applications.

3. Buy hardware and host it in a mining facility

Another excellent method of earning a passive income through Bitcoin mining is purchasing Bitcoin mining hardware and hosting it in a 3rd-party facility.

Typically, the hardware seller will also offer to host the hardware in their facility for you. They will set up the hardware and handle all of the maintenance. However, they will charge a hosting fee, and you will have to pay for the electricity.

Our favorite hosted Bitcoin mining facility is provided by a company called Compass Mining.

Compass Mining homepage screenshot

Compass Mining is a Bitcoin-first company with a mission to support the decentralized growth of hashrate by helping more people mine Bitcoin.

Co-founded by Paul Gosker and Thomas Heller, the company offers a marketplace to purchase the top-tier Bitcoin miners and then hosts them in one of their established facilities.

Compass Mining currently has offers for Bitmain’s S19J Pro mining hardware. They also sell MicroBT Whatsminer M30s and Canaan AvalonMiners.

The company is partnered with a plethora of mining facilities in the United States, Canada, and Iceland. These facilities are all verified by Compass Mining, so you can be sure that your hardware is in good hands. In addition, these established facilities can provide much cheaper electricity rates than typical residential plans, meaning your overall costs will be much lower.

To get started on Compass Mining, users have to choose an ASIC, select which hosting facility to send the ASIC to, join a mining pool, and then receive the daily mining payouts.

As users connect to a mining pool, they are more likely to find Bitcoin blocks through the combined resources. Then, all the BTC earned through mining is distributed among participants in the mining pool depending on the hash rate provided to the pool.

Compass Mining provides the perfect solution if you would like to directly mine Bitcoin yourself without having to deal with the daily hardware maintenance. In addition, this is a great way to earn a passive income through Bitcoin mining if you are willing to front the expensive costs of purchasing Bitcoin mining hardware.

Bitcoin mining is popular because it is the oldest method of earning an income through the cryptocurrency industry. The entire blockchain started with Bitcoin mining after Satoshi Nakamoto, the founder of Bitcoin, released the Bitcoin protocol to the public.

Out of all the methods of making money in crypto, Bitcoin mining is perhaps the most straightforward. Compared with trading, liquidity mining, yield farming, or lending & borrowing, Bitcoin mining requires the least amount of knowledge and maintenance, especially if it is done passively through a project like Copium Protocol or a cloud-based mining provider.

You might think that the popularity of Bitcoin mining has started to settle down with the latest Bitcoin price crash. However, there is some data to show that this is not true. Typically, most miners learn and gather information from social media platforms such as Twitter and Reddit.

Looking at the growth stats from one of the most popular Bitcoin mining sub-Reddits, we can see that the interest has continued to swing upwards even with the latest price drop.

 

Overall, it seems that people are starting to look back into Bitcoin mining as a method of earning a passive income while the price of Bitcoin and mining hardware is low.

Conclusion

In conclusion, quite a few methods of earning a passive income through Bitcoin mining exist. If you have the funds, purchasing mining hardware and hosting it in a third-party facility would be a good option. However, this is a very costly solution and often requires tens of thousands of US Dollars. Alternatively, you could purchase mining contracts from a cloud-based service provider.

However, in our opinion, the best long-term method to make a passive income through Bitcoin mining is investing in a passive crypto mining ecosystem such as Copium Protocol. This project makes passive participation in cryptocurrency mining absolutely simple, and the Investor Pass NFT sale provides the perfect opportunity to invest in this ecosystem.