Last time, we looked at Crypto Currency and what it means. This time, we’ll look at Mining, and its potential.
What is mining?
Many people are confused as to what mining actually is. With many thinking Bitcoins as some sort of hacker’s currency, it’s not surprising that Crypto Currency jargon is shrouded in mystique. With that in mind, in this article, we’ll clear up what mining actually is.
Anthony Volastro has defined mining as, “‘Mining’ is lingo for the discovery of new bitcoins – just like finding gold. In reality, it’s simply the verification of bitcoin transactions.” And how is that done? “It’s not just one transaction individuals are trying to verify; it’s many. All the transactions are gathered into boxes with a virtual padlock on them – called ‘block chains’ … Miners run software to find the key that will open that padlock.” And when they achieve that, new bitcoins are released as a reward.”
As Volastro said, mining is about finding the write combination to unlock a Bitcoin or any Cryptocurrency. The rate at which this is done is called the Hashrate
Can Mining be Profitable?
Dire warnings about the future of Cryptocurrency have scared off quite a few people from investing in what is clearly the currency of the future. However, these warnings are mostly scaremongering from a group of people who find the idea of a cryptocurrency threatening to their current position or the future position of the institution they work for. While Cryptocurrency isn’t guaranteed to continue growing, it is something that has established itself and isn’t going anyway. The two biggest platforms are completely secure, and heavily backed by many people, so the safety of the platform is nothing to worry about.
With that said, the question is how profitable mining can be?
The answer to that question is that it can be as profitable as you make it. You can make very little money, mining a few hours of the day while using your computer for different applications. You can make a larger profit by buying a dedicated mining rig and using it, and breaking even within one year, as we will show in the next article. A dedicated mining setup can earn to the tune of a few thousand dollars, to the tune of a few hundred thousand dollars, depending on how much you invest.
Why don’t more people mine if it’s profitable?
This is a question bandied about by many skeptics in the world. If something is so good, why are more people not doing it? It’s a valid question, however, let’s consider another question. How many people in the world are prepared to take a risk to make a profit?
The answer is not very many, and that is why Cryptocurrency is yet to completely take off, even though more and more people are using it every day. And this is good news for you, because the more the number of people that mine, the less the profit. So get into the game now, before the profit is completely wiped out, and Cryptocurrency turns into just another currency.