6 Interesting Facts you Need to Know about Bitcoin Mining
We already know that trading cryptocurrencies are more than a lucrative business. People are increasingly deciding to invest in this field. It is also interesting that you no longer have to be unemployed to fully dedicate yourself to this job and manage to earn a real fortune. Today, thanks to software, you do not need to spend your free time following the market situation. You are free to relax and enjoy a day spent in the park with your family while making money at the same time. But how?
The trick is that the software uses artificial intelligence and monitors the market situation. They have been proven to respond 0.01 seconds faster than the fastest trader. However, to start investing, but also to make money, we must master the basic things.
We believe you have all heard of cryptocurrencies. Among thousands of them, Bitcoin (BTC) stood out as the most recognizable and at the same time the most valuable. The value of this currency is growing day by day. At the beginning of 2009, when it was officially put into use, its value was negligible, about .003 USD. Today, the value of 1 BTC is equal to 9.199,35 USD. According to these figures, we see that it pays to invest in it.
Bitcoin can be bought in several ways, in-person (per-to-per), in exchange offices, and various other ways, but we can freely say that buying through ATMs is the most common. At the same time, this is the simplest way. Just as there are ATMs for regular money, so are more and more set up for cryptocurrencies around the world.
All you have to do is swipe your credit card and buy cryptocurrencies. But before you do, you need to provide a wallet in which to keep your little fortune. Since we already know that cryptocurrencies are digital money, the wallet will have to be the same. You have two options, to choose the so-called hot or cold wallet. Most people think that a cold wallet is safer because it does not require an internet connection, so your team also protects against hacker attacks.
We mentioned that a lot of people trade cryptocurrencies, monitor the market situation, and wait for the right moment to buy or sell, invest in various stocks of companies around the world, and so on. But what we’re going to talk about today is mining. For mining, we can say it is a process of adding transaction records on bitcoin public register called the blockchain. In other words, it is a process of record-keeping, being performed with the help of computer processing power.
The blockchain represents a chain of blocks, and altogether it represents the list of transactions made during a certain period. When the block of the transaction is generated, miners put them through the process. By using a complex mathematical formula for the block information, they simplify it by making it shorter, and that random order letter is called the hash. Hash is consisted not only of the information from the transaction block but also other data are being used.
We will single out for you a couple of interesting facts about mining:
- As for the legality itself, there is no legal ban unless you withdraw real money from the stock market. Every time you have money in your account, you have to sign and state the origin of the money, and of course, you pay taxes. At least this is how it should be in all countries.
- Bitcoin mining can be viewed in the same way as gold mining. The process is the same, except that gold is something very visible and tangible, and bitcoin mining takes place in the virtual world.
- In bitcoin mining, there are rewards for those who successfully add a new block to the blockchain. This award has never been won by an individual because no one has such computing power to solve complex mathematical operations, but more people have to come together.
- To secure your chances of winning, you need to join a mining pool. Miners share their processing power over the network and they split the reward equally. The odds for winning are 1:1.000.000 if you do it by yourself, but it increases to 1:1.000 if you join the group of miners, depending on how big is a pool you joined in.
- It is important to point out that there are three types of mining, and those are SPU, GPU, and ASIC mining. We can say that cloud mining is at the moment most popular due to the fact the only thing you have to do is to “rent” their mining machine (rig). The earning will be transferred to your cryptocurrency wallet, excluding rental and electricity expenses, which we all know can be quite high.
We can say that CPU mining was more popular in the past, while today very few people opt for this method. GPU mining is most commonly used and its biggest advantage is that it can also be used to mine other cryptocurrencies, not just bitcoin. ASIC method is the most powerful and can capture other miners using the CPU and GPU method. Also, it can produce great amounts of cryptocurrencies.
- You should beware of “Cryptojacking”. In case you have not heard about it, the scammers put malicious code into your device by making a benefit without your approval. One of the things that will tell you that your mobile device or computer has been hacked is that the battery will discharge faster, and it will work much slower. What you can do is install an antivirus program on your device. If you want to download software from the Internet, do so only from trusted sources.
We hope that many things about cryptocurrency mining are clearer to you now and that you are ready to take the first step towards making money. If you are interested to find more information check https://bitcoins-digital.com.