Ever since the introduction of Bitcoin back in 2009, various types of Cryptocurrency have been introduced in the market. They include Feathercoin, Litecoin, and Dogecoin. In fact, there exists a twist of Bitcoin that is known as Bitcoin Cash. But where do they all come from? Mining is basically the process of coming up with new coins. In the text below, you will learn what it is all about and why should do it.
How mining works
The basic way of mining coins is by verifying transactions done by other people. Each transaction is stored in what is known as a blockchain which is simply a digital lock away. Verifying can be described as finding the key to this virtual door. People also often refer to it as solving a complex Maths problem. Finding this key is hectic and can be equated to looking for a needle in a sack full of sawdust.
Once you successfully solve one of the many blockchains, you provide a proof of work (POA) and are rewarded with fractions of coins. You can then go ahead and invest more or exchange for real cash. In the case of Bitcoins, every 10 minutes, a miner gets rewarded with 25 Bitcoins. Today there are over 17 million bitcoins mined. Mining other types of Cryptocurrency involve more or less the same thing. It may be different, but it follows the same logic and plot.
Is it worth?
On average, mining as a beginner may earn you anything around $2 on a daily basis. Therefore, if you plan to start it from scratch, let it be a secondary source of income. Alternatively, you can pump in a substantial amount of money into the business and start earning around $50. You may also get lucky in case there was to be a major hike in the value of one coin. You might wake up one day and find yourself looking at thousands of dollars. Why not do it?
What you need to mine
Mining is usually open to anyone who has access to the necessary tools. The basic ones include:
- Mining software- an example of such software is Guiminer which starts mining soon after launching.
- A fast computer. The faster your machine is, the higher chances you have of mining successfully.
- A digital wallet established on the software to hold your earnings.
- Some specialized mining hardware that is available for purchase with relative affordability. Some of them include Antminer s7 and Avalon 6 that are used to mine Bitcoins. Then you can trade them- learn how here.
Why should you not mine Cryptocurrency?
There is absolutely no reason for you not to try mining Cryptocurrency. The only thing you should worry about is malicious attacks. Wallets are prone to attack by hackers. If they steal your earnings, you can sue no one. Otherwise, there is always the option of buying and selling fractions of coins. Many people make a living off it too.
Remember that Cryptocurrency is here to stay and might be the ultimate future of finance. Therefore, start mining now before the coins limits are reached. Yes, they have limits. For example, the highest number of bitcoins to be mined in the future will not exceed 21 million. Also, beware of scammers who are currently on the rise throughout this industry. They may take advantage of your hard work or simply rip you off your money claiming to sell you better mining software.