Are you new to digital currencies or cryptocurrencies? Or better still you have been hearing of Bitcoins and you don’t know how to profit from it? Look no further, this post will provide information on what you need to now, if you’re considering investing in Bitcoins or alternative digital currencies.
I won’t bore you with how cryptocurrencies came into existence, but if you care to know, you could visit the links below to read more:
There are many emerging digital currencies but we’ll take a look at the most successful one at the moment - Bitcoin.
Bitcoin was created by Satoshi Nakamoto in 2008; his identity is still unknown, and he disappeared from the online world a few years after creating the cryptocurrency. Bitcoin is a distributed digital currency that is not controlled by anyone, but based on Blockchain technology. It doesn’t require an intermediary for any transaction to take place. For instance, when you make an international transaction, your bank acts as an intermediary to complete the transaction at a high charge to you, but this is not the case with Bitcoin transactions even though the exchange charges a small fee – incomparable to the fees charged by the banks.
There are only 21 million bitcoins that can ever be mined, no matter the population growth and its demand. When all 21 million have been mined, there will never be any new Bitcoins, hence demand will be on the rise - the more retailers accept it as a form of payment - and the value will increase, making it different from conventional currencies whereby the governing authority print more money as needed (This is known as Quantitative Easing (QE).
As more and more retailers are beginning to accept Bitcoin as a form of payment, it has increased in value and popularity; and at the time of writing this post, one Bitcoin is about $6,200K. Will this continue to increase?
How to Profit from Bitcoin?
Now that you know a bit about what Bitcoin is, are you wondering how you can join the revolution? Is it safe now to invest in Bitcoin at the current price? There are many ways in which you can join the bitcoin revolution as discussed below:
• Mining Bitcoin
• Investing in Bitcoin
• Trading Bitcoin
Mining Bitcoin
Bitcoin mining is the process of discovering Bitcoin and updating the transaction process of sending and receiving Bitcoin in the Blockchain. This is done by a specialised application running on a computer to decrypt the algorithm to display the coin. When bitcoin was new, many people got into mining through their laptop and home PC. As this currency gained in value, it become more difficult to mine, and the power to process complex mathematical equations increased greatly, hence the need for special hardware for mining. Below are useful links to get you started with mining Bitcoin:
Mining Info
READ MORE - BITCOINMINING
Mining Bitcoin for beginners:
READ MORE ON MINING BITCOIN FOR BEGINNERS
READ MORE ON MINING BITCOIN APPLICATION & SPECIALIZED HARDWARE
Bitcoin Mining Calculator and Profitability Calculator:
BITCOIN MINING CALCULATOR
Using the above calculator to mine a Bitcoin, we see that it might take about two years, i.e:
- Days to generate one block mining solo: 7634.36 Day(s) (can vary greatly depending on your luck)
- Days to generate one BTC: 610.75 Day(s) (can vary greatly depending on the current exchange rates)
- Days to breakeven: 535.62 Day(s) (can vary greatly depending on the current exchange rates)
From the above, we can see the reason why people prefer to buy bitcoin instead of mining - and the price keeps going up. Instead of mining alone, you can purchase a share in “Mining Pool”. This is a situation whereby different miners come together to invest a powerful and specialised mining computer for the decryption of Bitcoin, and receive a daily reward based on the contributed ratio.
Bitclub is one of such mining pools and has been investing in mining hardware. Now is your chance to also start profiting from Bitcoin mining and here’s a link to the mining pool I belong to, i.e. one of many out there. Please note I will receive a referral commission if you join this pool!
I’ll continue next week on Part II, till then:
Disclaimer: Everything in this article is just advice, based on my best understanding of the current Bitcoin situation. The cryptocurrency market is still very uncertain and subject to change. Be extremely careful, and remember that it‘s the blessing of God that makes rich and adds no sorrow.