How to Make Money With Bitcoin
Hello, this is my very first article on this site. I hope it will be approved, and I will discuss bitcoin and the blockchain.
Let me clarify for those who aren’t familiar: Bitcoin is a currency that can’t be controlled by any bank or government. It is essentially a virtual currency that can be bought online with real money. So, aside from the fact that it is a decentralized currency, what are its advantages?
Well, you can send bitcoin anywhere in the world without paying a lot of fees, and a technology called blockchain allows you to conduct transactions in complete anonymity. You may be wondering what the big deal is about this, but let me tell you: when it first went live, one bitcoin was worth nothing. Now, one bitcoin is worth $6,689.35, which is pretty impressive growth, isn’t it?
You might be wondering, “How does this thing grow?” Well, in order to maintain a blockchain, there must be something called a ledger in which all of the transactions must be recorded. In order to become a block in a blockchain, a hashing function must be solved, and mining bitcoin is the process of producing bitcoin by solving hashes.
Previously, graphics cards were used to solve the hashing function; however, as time passed, dedicated hardware known as ASIC miners were introduced and the difficulty of mining bitcoin increased.
As a result, those who spend time and money mining bitcoin will be rewarded in bitcoins, and the blockchain’s value will rise as more people join it.
So, how can I make money with bitcoin? There are two options: 1) you can trade bitcoin/altcoin (any cryptocurrency other than bitcoin is called an altcoin; yes, there are thousands of them) or 2) you can mine them on your own. Both of these options have their own advantages and disadvantages. Since bitcoin is controlled by no one, it is extremely unreliable; one day, it could be worth 10,000$, and the next day, it could be worth 100$. Trading is simply buying bitcoin for real money, You run a very high risk of losing money rather than making a profit with this strategy.
Alternately, you could decide to mine bitcoins; however, there are a few things to keep in mind: mining hardware is extremely pricey, mining requires a lot of electricity, and the difficulty of mining is increasing on a daily basis. As a result, you won’t be able to make any money without making a significant initial investment.
However, if you know what you’re doing, bitcoin trading and mining are good ways to make money.
Hey, if you enjoyed this article, I will provide a link below to a retailer selling high-quality graphics cards for bitcoin mining.
