This is my first article here, so I hope it will be approved, I will share some points bitcoin and blockchain.
For those of you who don’t know what Bitcoin let me put it this way Bitcoin is a currency that cannot be controlled by any bank or government, it is basically a virtual currency and can be purchased online with real money. So apart from being a decentralized currency what are its benefits you can transfer bitcoin anywhere in the world without much fees, you can be 100% anonymous while transacting thanks to a technology called blockchain.So what’s the big deal in this you may ask, let me tell you when it first launched it had absolutely no value but now 1 Bitcoin = $6,689.35 which is quite an impressive growth isn’t it ?
So how does this thing grow you may ask let me tell you how to maintain a blockchain there must be something called a ledger where all transactions must be recorded and to become a block in a blockchain hashing must be allowed function and producing bitcoins by solving hashes is called bitcoin mining.
To solve the hashing function, people usually use graphics cards, but over time, bitcoins become more difficult to mine, and special hardware called ASIC miners are introduced.
So people who spend their time and money mining bitcoins will be rewarded in bitcoins and as more and more people become part of this blockchain, its value will increase.
so how can i make money with bitcoin, there are two ways
1. you can trade bitcoin/altcoin (every cryptocurrency other than bitcoin is called an altcoin, yes there are thousands)
2. you can mine them yourself
Both methods have their advantages and disadvantages because Bitcoin is not controlled by anyone, it is extremely unreliable, one day it can be worth 10,000$ and the next day it can drop to 100$. Trading is essentially buying bitcoin for real money and praying for its price to go up and selling it when it does. This approach is very risky and you may end up losing money instead of winning.
Or you can choose to mine bitcoins but here’s what you need to consider, mining hardware is super expensive and mining requires a lot of electricity, also mining difficulty is getting higher every day so you won’t be able to get profits without high initial investment.
That being said, Bitcoin trading and mining are two good ways to make money if you know what you’re doing.