Bitcoin once started as a small element has now grown humongous and now considered one of people's favorite way to pay for digital transactions. There are thousands of everyday transactions that has been made and recorded and millions of money has been exchanged across the internet through bitcoins. And well, if something that is as huge as a bitcoin should run smoothly, everything has to be managed through a database or say ledger and that is called block chain or block chain technology. It shows step by step process that happened between the parties that involved in a particular bitcoin transaction.
pic: time2eco.com
Buying Bitcoins:
I do not think there is a need to explain this part because by now we all know there are several sites that sell bitcoins in exchange for their associated currencies. some examples are unocoin, coinbase, kraken, bitstamp and I could literally like go on with the names. We can buy the coins using debit/credit cards, wire transfers or even cash. Additionally, you can also buy these coins from agents or trading platforms. Surpringly, some countries even has bitcoin ATMs as BTMs. This is like the easiest, risk less and hazzle free ways of getting into the bitcoin world compared to mining and we will see why.
Bitcoin Mining:
Mining is nothing but not buying but are brought into existence or as they say mined into existence. As explained above, mining could be done by verifying the blocks of transactions and getting rewarded through bitcoin form. It's nothing but releasing new bitcoins as a reward for your verification of the blocks. participants generally accumulate the newest or recent transactions into the blocks and trying to validate the transactions to see if they are legitimate or just re-use of coins.
bitcoinmining.com
but let us see why it is difficult than just buying coins.
- The result is directly proportionate to the effort that is put into the mining. It involves to set up perfect technology and program to work efficiently that includes your power consumption and other related factors. They also need more powerful circuits and other dedicated stuff only designed for mining.
It is always inevitable that if one way of doing things proved to be profitable to people, more people will join the same very soon because hey, everyone has one intention that is to earn good and there is no denying of that right? so the more people join to mine a block, the less profitable it becomes at certain point of time.
You can literally like save so much of time by simply buying the coins rather buying because it is said that even the best miners would take hours or days to mine while in buying you can do that instantly or within 30 minutes max or so as we now have hundreds of trusted exchange portals.
we have transaction fee while we buy the coins but this is nothing when compared to the set up and hard work we need to go through while mining.
so what I prefer in this confusion is obviously the option of buying . it is simple, fast and effective and especially suited to the larger groups of people who doesn't have much idea about the trading, exchanges and bitcoin functions or people who are just starting this.
thanks for reading.
