Bitcoin was introduced to the world in 2009. Unlike its predecessors, it is not regulated by any government or bank, which is why the value of this cryptocurrency has skyrocketed several times in the past and gained so many users. These days, it’s hard to find a person who has not at least heard about Bitcoin.
A lot of people want their part of the mining cake because they believe Bitcoin is easy money. After all, all you do is sit at home or travel the world enjoying yourself while your computer does all the work for you and makes you filthy rich.
But does it really work this way? If you are willing to dip your toe in this business, there are several things you should know about this cryptocurrency before you get ahead of yourself.
What is All the Fuss About?
If you are wondering why Bitcoin has become such a big deal in the past decade, you should know that the government does not control Bitcoin. Since this is an entirely independent currency, banks cannot track your money.
In addition, bitcoins are transferred directly between individuals through a peer-to-peer network, and therefore, there are no middlemen such as banks to take a slice of your cake. As an owner of a bitcoin wallet, only you get to decide how your wealth is managed since these virtual wallets cannot be seized or frozen by banks.
While other payment methods can be reversed by the banks involved, in the case of this cryptocurrency, the transaction is final and cannot be reversed.
When Bitcoin was first introduced to the world, using CPU was enough for mining it. As it started to gain popularity, however, mining became more difficult and people began adding special components to computers such as GPU.
Over time, miners moved on to FPGA mining because this piece of hardware was up to 100 times faster than a GPU. Finally, in 2013, the ASIC miner was introduced, and it has been a mining standard ever since.
As you can see in the Bitcoinfy’s infographic below, Antminer S9 from Bitmain is the most efficient miner these days.
Is it Worth It?
What most people do not realize is that mining is not cheap since all these miners cost a few thousand dollars. In addition, if you don’t have access to cheap electricity, you will be unpleasantly surprised when you receive the electricity bill.
There are a lot of other things you need to take into account before you can calculate profitability, such as hashrate, mining difficulty, power consumption, and mining pool fees.
When you add to the equation the fact that no one knows what Bitcoin’s price will be in the future, it is easy to see that getting into the mining business should not be a rash decision.
To learn more about this cryptocurrency and mining, check out the infographic below.