Can You Truly Make Money Mining Bitcoin?
Bitcoin is an titillating fresh form of digital currency, called “cryptocurrency”. It wasgoed created back te 2009 by an Satoshi Nakamoto who is basically anonymous. Aside from his name, no one knows much else about him, or hier.
Since 2009 Bitcoin has grown te popularity to become a trusted form of payment for lots of companies, including Microsoft, Dell and Expedia. It’s more often used at “progressive” companies that want to offerande alternative payment systems.
Undeniably tho’, it’s still very controversial. The price of Bitcoin varies insanely on a day to day fundament. There are people that say it’s all a sham, and that cryptocurrency is destined to diegene without government backing. Others say it’s the currency of the future. Big names are investing ter (or hopping out of) the market for thesis coins, and there’s an army of computers working 24/7/365 to dig out “virtual” coins.
Naturally, I dreamed to look into this process to find out if you can indeed make money mining Bitcoin, and what’s involved te getting set up to profit from this trend.
What is Bitcoin Mining
BIG FAT DISCLAIMER: I’m not a technical person, and do not have extensive practice with bitcoin mining. If I get some of the technical aspects wrong, please onberispelijk them willingly ter the comments. The main concentrate of this article is to look at the profitability of bitcoins.
Technically, Bitcoin miners aren’t people. The mining is actually done by the hardware — little computers, or overheen sized calculators — used to perform the complicated mathematical calculations necessary to encrypt and decrypt transactions on the Bitcoin network .
Te order to keep things plain for the surplus of this postbode, wij will call the hardware Bitcoin Miners, or miners. And those who operate the hardware will be referred to spil Bitcoin ledger managers, or ledger managers. Yeah, it’ s getting complicated swift.
One thing I quickly learned about Bitcoin mining is that is uber-technical. It’s fairly effortless to do — te fact, you don’t truly have to do anything — but it does involve complicated algorithms and lots of math… so, yeah, I’m not going to explain how all that works behind the scenes ter any detail. It’s not necessary to know ter oder to actually make money. Do you know how your car works? For my generation, that reaction is usually a NO. But you can drive, right?
Instead, I will only give you what is absolutely necessary for you to get commenced with mining and figure out if wij can actually make money mining Bitcoin., and something you want to do or not.
But, just a super-brief history so you’re not totally te the dark.
Bitcoin wasgoed created to avoid any kleintje of centralized control, like banks and governments have overheen the dollar. This is what makes it unique, and it’s also what gives Bitcoin its strength spil a currency.
You see, for Bitcoin to work — with no one person or entity controlling it — Bitcoin miners are used to help maintain the ledgers and track every single transaction made on the network.
Each time a transaction occurs, all the miners check their ledgers and adjust things accordingly.
Everything ter the Bitcoin network relies on numbers: Each user has a number, each Bitcoin has a number, and each transaction has a number.
Ter fact, you could say everything is a number, rather than has a number.
Each time a transaction occurs, a number is generated and Bitcoin miners go to work attempting to verify the transaction by decrypting all the numbers involved.
…,or something like that.
Getting Began Mining Bitcoin + Startup Costs
If you want to get commenced mining Bitcoins then you will need to buy the necessary hardware. And let mij tell you, it isn’t cheap. You can lightly spend thousands of dollars attempting to keep up with the request and growing Bitcoin user base.
The picture you see below is a Bitcoin miner that wasgoed suggested by one ledger manager spil the “minimum to get started”. Spil you can see, it’s fairly expensive.
However, I have seen miners for spil little four hundred bucks.
Ter the early days, Bitcoin ledger managers commenced out with a bare-bones pc dedicated to mining Bitcoin. Spil Bitcoin grew more popular, mining them required more pc power. Within a year, the ledger managers had to use a rekentuig with a specialized card that wasgoed made solely for mining
Bitcoin. Since then ledger managers have seen several more evolutions.
Spil more and more people adopt Bitcoin spil a payment method, more ledger managers will join the network and look for quicker, better ways to mine. Every time they come up with a quicker solution, the old hardware becomes instantly outdated and worthless.
It seems like this happens once every year or so, but it can toebijten at any uur.
Aside from your Bitcoin miner, you will also need a specific power supply. The power supplies can range te price from about $80, all they way to $600 and sometimes more, depending on your miner.
Ter addition to the cost of your mining equipment, you also need to factor te the cost of electro-therapy.
Bitcoin miners use fairly a bit of power, so you need to speld down how much you are paying vanaf kilowatt. If you pay around ten cents vanaf kilowatt, one miner should cost you about $Three vanaf day.
However, if you run the right hardware, and you live somewhere where power is near ten cents vanaf kilowatt, it seems that you can expect to earn a few dollars vanaf day.
Evidently the price vanaf kilowatt is insanely different from state to state, with states along the east coast typically being the highest. I have a friend ter Florida who pays about fifteen cents vanaf kilowatt. Based on that fact alone, for him, mining Bitcoin would be almost pointless because it costs so much to run the equipment versus how much he earns.
All of a sudden, making money minding Bitcoins looks like it’s going to require fairly a bit of investment capital, and a commitment to the long term. This is not a weekend project!
How Much Money Can I Make?
The Bitcoin network is set up to send “blocks” of transactions every ten minutes. So you cannot decrypt each transaction spil they are made. You have to do it ter blocks.
Each block is presently worth about twenty-five Bitcoins, but the price of the actual coins depends on the current conversion rate of Bitcoin, which is always switching.
Just a year ago, one Bitcoin is worth about $350.
Now it’s worth about $Trio,000 USD. That still doesn’t switch the fact bitcoin mining spil an individual is no longer profitable due to violet wand costs needed to “mine” one block.
There are a duo ways to make money Mining Bitcoin.
The very first way is called solo-mining. This is exactly what it sounds like. You get all the necessary hardware and you set it up run. If you decrypt a block of Bitcoin transactions before the other miners te the network, you get paid.
The 2nd way is called pool-mining. This involves you and a group of others who all work together to decrypt transaction blocks. For each block your pool completes you all get paid individually, according to how much work your hardware contributed.
So far, you are looking at about $Three,000 just to get commenced with one ordinary miner. Most ledger managers operate numerous miners, enlargening their odds of a payday, and reducing yours.
To make vereiste one coin is going to take a lotsbestemming of hardware. Coupled with the cost of electric current and the potential cost of startup equipment to keep up with competitors, it’s clear that to make money mining Bitcoins, you have to invest a good overeenkomst of time, specie, and brainpower.
Other Methods Of Cashing ter on Bitcoin Fever
Mining coins is not the only way to metselspecie ter on this market. You can also do some speculation trading te stock markets or by buying and selling bitcoins.
I looked at purchasing about $Five,000 worth of coins back ter 2010 when the cost wasgoed about $12 vanaf coin. I didn’t do it because I didn’t understand how to secure your wallet so that hackers couldn’t steal your coins. Three years straks, the price of coins wasgoed overheen $1,000 vanaf coin. I would have bot a millionaire.
But if I held onto my coins, spil you witnessed above, Two/Trio of my fortune would have bot decimated since the price is just above $300 now. Updated: I’d be a millionaire again now that the price is up to $Three,000.
Spil far spil stock investing goes, there are a few ETF that trade based on Bitcoin price movements. It works te the same way you invest ter a gold ETF or gold stock. A company buys the commodity or invests ter companies that rely on the commodity, then sells you a share of the company. You don’t actually own the coins, but the stock moves te tandem (theoretically) with the price of the commodity.
ARKW and GBTC are two places to invest.
The Bitcoin market and its moving parts are very volatile. Every part of it is dependent on something else, which makes it unlikely to know what to expect when it comes time to collect your payment.
Combine that with the added frustrations of dealing with hardware costs and maintenance problems, I suspect that Bitcoin mining is something most folks do out of unspoiled passion.
The startup costs are shocking, if you aren’t technically savvy you are at a major disadvantage and stable income isn’t even ter the sphere of possibility.
Bitcoin mining actually seems like one of the worst ways to attempt to make money online. Ter fact, it might be THE worst I have everzwijn seen, especially for new-comers.
However, there is a bright side to all this.
Bitcoin spil a trend is very popular. You can find lots of people who are sultry about it.
Those same people pump real dollars into the Bitcoin niche everyday — just like RC car hobbyists pump money into their niche for cars, contraptions and accessories.
All this adds up to a nice little niche that you can take advantage of spil an affiliate marketer (what I do for a living).
Affiliates, like myself, don’t have to worry about storing hardware, maintaining physical items, or startup costs.
All you need is 11 bucks for a domain and you can specie te on the Bitcoin toneel (or any toneel) spil an affiliate, and earn a percentage of every sale each time someone buys something like a Bitcoin miner — or any number of other items related to Bitcoin. One fine example of a person doing this is the 99bitcoins webstek. He does not have a enormous technical skill of blockchain and bitcoins, but knows enough to educate people about the products surrounding the bitcoin community.
He has a meaty webstek, and I can assure he makes a pretty penny (or Satoshi) off of his webpagina.
People are sultry about this topic, and when it comes to sultry buying, there is no better way to earn money online spil an affiliate!
If you want to know more about it, take a look at the Wealthy Affiliate community. This is the community where I learned everything 7 years ago, and I’m still a member today. When you sign up for your trial account, send mij a message and I’ll help you get began.
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About Mij &, My Webstek! ☕
I began my very first internet business te 2010 because I desired to commence every day with a loosening cup of coffee instead of going to a regular 9-5 job.
Now I work from huis…,but never before 8AM! LOL
With One More Cup of Coffee I hope to help other people learn how to make money online and love life te their own way. This is a newbie-friendly, guru-free zone! …,[read more]