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Yeah, I loved this too. tyvm.
https://youtu.be/z5VT4uI87YE
It's very interesting to read the comments, cause it shows how controversial this topic obviously is.
i'm a professional in this field, so i can help answer your questions
the idea of cryptocurrencies (virtual currencies not backed by any government, or any object of innate value) is that you need computers to process extremely complex "blockchain" algorithms -
in order to generate a "coin" for use or storage in a virtual wallet.
"cloud mining" is 1 of many "coin mining" methods that people can use to speed up the process (to get more coins faster), using cloud computers to provide the processing power. the benefit is that people don't need to dedicate money or physical space to put large, hot, noisy, power-hungry computers - they can just sign up a cloud subscription, and pay for the processing power provided from another location, via an internet connection to a home computer.
it has nothing to do with data collection of any users on the internet :) hope it helps!