Cryptocurrencies are currently being regarded as the potential currency of the future. People are investing heavily in them, even though the prices of these virtual currencies are extremely volatile. There are several cryptocurrencies being used for daily transactions today, but the one that garners the most attention is Bitcoin.
Bitcoin is the first decentralized digital currency. This is because it works without a single administrator and the price is controlled solely by demand and supply. It is also the most commonly used cryptocurrency for online business dealings. These currencies are stored in digital wallets.
Mining is to cryptocurrencies what minting and printing are to regular fiat currencies. It involves solving a series of complex encryption problems.
Bitcoins are created through a process known as cryptography. There are various terminologies used by cryptographers, they are blocks, difficulty, electricity rate, pool fees, time frame, conversion rate and lots more.
It is quite expensive to mine and the mining process consumes a lot of time, electricity and computing power.
Mining requires powerful computer processing capabilities. There are customized computer hardware and software available that allows miners to find bitcoins even faster. Despite all these, the mining process is an act that should be encouraged. Let’s take a look at some of the advantages.
Benefits Of Mining Bitcoin
Although it might take a long time to get a return on your initial investment, here are a few reasons why you really should mine Bitcoins in 2018.
- Lower fees: Mining will give you cheap access to Bitcoin as you are settled in the cryptocurrency. This means you eliminate fees that you would usually pay if you were purchasing from a seller or an exchange website.
- Eliminates risk purchase: There have been many cases of people getting swindled during their quest to purchase this cryptocurrency. If you mine your Bitcoin, you are sure that you are getting the real deal and not a counterfeit. Mining your own eliminates the risk involved in the purchase of BTC from third parties.
- Profitability: There are potentially large earning opportunities. Mining has proven to be a great way to yield more income. Many cryptographers have transformed their mining efforts into larger scales, this becoming more profitable.
- Immediate Settlement: Often times during the purchase of Bitcoin from sellers, there is usually a lag in settlement of BTC. The sellers have to verify payment and perform other protocol checks before sending the BTC to you. This leads to delay in settlement. However, mining of BTC will help you avoid these third party delays, and ensure your BTC hits your wallet instantly.
Making money mining Bitcoin is much more technical these days and the reasons for these technical difficulties are hardware prices, a rise in corporate miners, encryption complexity, and power costs. Regardless of these stumbling blocks, financial analysts say it is profitable to mine bitcoins in the long run. There are a lot of profit-making opportunities in the world of cryptocurrencies, and we all need to start exploiting them. Always remember to only invest what you can afford to lose. Never go way in over you head, no matter how much capital you have.