How to Mine Bitcoin!
Whenever I talk with someone about Bitcoin and cryptocurrency that is new to it or I run into someone that has not seen me in a while, a common question will often be if they could mine Bitcoin at home or in their business. Some will express having top of the line gamer PCs, or Corporate servers they could spare to mine Bitcoin and more importantly make some money!
I always hate to be the bearer of bad news, so I break it to them gently that the days of mining like that are long gone, at least on the Bitcoin network. The 'at least' part sometimes raises eyebrows of the savy listeners, and occasionally spawns a side topic conversation on other crypto-currency. Although companies like Bitmain still sell small units for the Bitcoin Home Miner enthusiasts, these same enthusiasts quickly find out that heat and electrical bills can quickly become a problem. Another problem is that home electrical wiring would not be able to sustain many of these mining devices without tripping a circuit breaker or worse. Today Bitcoin mining is left to the large scale mining farms that have sunk millions of dollars into their operations. These Bitcoin farms are held inside huge commercial buildings, even unused airplane hangars.
By now I notice most people have suddenly lost some of their original enthusiasm for mining Bitcoin. So I quickly intervene by telling my listeners that there is something they could try, although not as intense or interactive as live Bitcoin mining. Cloud Mining services like Genesis-mining, which I personally just recently starting using, removes all the physical problems with having to setup and maintain Bitcoin miners. You simply figure out which plan you want to start with beginning with $30 and up. You can purchase in $30 Dollar increments, or save by buying one of the larger packages from $350 up to $1950.
Although there are companies out there running large Bitcoin Server Farms, there still might be some room for the little guy to squeeze in there and get some too. With Bitcoin losing some of its market capitalization share to other crypto-currencies, this has bolstered those same crypto-currencies with new capital investment. This has not gone unnoticed by some of the huge Bitcoin mining operations.
The scenario goes like this: A 50% increase for Bitcoin right now would mean a jump of approximately $1350, which isn't out of this world but it is also psychologically a bigger jump than say Peercoin going from $2 Dollars to $4 Dollars which is a100% increase. Mining Peercoin might be a smarter move for larger operations trying to maximize profits.
The Hash rate chart and the Difficulty chart both show that the Bitcoin network has somewhat plateaued for the past month, while the price of Peercoin, which runs on the same algorithm as Bitcoin, sha256, but on its own independent network, has more than doubled. I suspect that some Bitcoin miners are either seeing that there is more to be made mining a coin similar to Bitcoin, but with a likelier chance of doubling, quadrupling or even more. Peercoin does fit the profile as a coin that Bitcoin miners can quickly boost up in price. So if large Bitcoin miners do point there miners elsewhere, this definitely leaves room for the little Bitcoin miners to get more of the action.
Below are a couple of screen shots of charts found on Blockchain.info
The Harsh Rate chart at 180 days
Roughly a 100% increase
The Harsh Rate at 60 days
Roughly a 50% increase
The Hash Rate at 30 days
Roughly a 10% Increase
So what do you guys think? Cloud mining or buy hardware? Bitcoin or Peercoin?
Full Steem Ahead!
06/23/2017
So You Want To Mine Bitcoin?
Code rT5ix8 =3% off + Bonus in STEEM!
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