Bitcoin Mining Info
What is mining?
How do I do this?
Will it cost me?
These are common questions when initially being introduced to Bitcoin mining, or any other crypto-currency mining.
What are the benefits? Can it really make me money? How long will it take?
These may also be questions that you have in mind; I will gladly explain.
Mining
Mining is the term used to refer to a block of transactions being solved in the block chain using computing power of (usually) graphics cards.
Essentially, it's what keeps the Block Chain moving along.. It's what confirms transactions as being correct!
It is the act of allowing your hardware that you either physically own, or own but is located elsewhere, to "mine" portions of a coin.
How is this done though?
It's simple, the act of "mining" is allowing the hardware to solve complex algorithms or equations.
The more equations or shares your mining equipment completes, the higher your payout.
Although payouts can be harder to reach without sufficient mining power, it is possible and generates passive income off of your investment.
So that's mining in a nutshell; You buy hardware or lease/cloud hash it, then it earns you portions of Bitcoin at set intervals.
Some sites out there have calculators and such that allow you to calculate profitability and some are posted right on sites, just look around!
Here are some of the best options that I've found and they either give you free hash power to start out with or a free miner!
In the Bitcoin world, free is never a bad term in my opinion! ;)
Ore-Mine has a very very simple interface and even gives you profit projections
based on the mines that you buy! Simplicity at it's best!
As far as investing goes, this site is great! 0.16% Gains per hour with options to re-invest!
If you do go with this site, consider the fact that you will be charged 5% of your held funds to release them.
You will make a much much larger profit by keeping your bitcoin in here for LONG PERIODS OF TIME. :)
I HATE when people don't use my referral links..
HERE'S WHAT I'LL DO TO DETER YOU FROM THAT!
SIGN UP AS MY DOWNLINE AND YOU WILL GET A BTC GIFT!
I benefit this way and so do you!
Works out better for everyone! :)
Click any picture or banner on my site and join under me!
Let's keep things honest and BENEFICIAL!
How
Several ways of going about mining are possible.
| Leased hash-power |
Virtual Hosted Mining |
Hosted Mining |
Pooled Mining |
You buy a certain hash-rate at a certain price and reap it's benefits.
You never have to have a dedicated physical or virtual computer. |
Completely online, similar to leased hashing power.
User/Group created virtual private servers with mining software installed. |
You lease some mining hardware that is hosted by a provider.
|
Your hardware power is combined with others to mine more Bitcoin faster.
You get a percentage based on what your hardware mined. |
Cost
The cost is circumstantial on what you would prefer to spend.
Every site has different rates and every piece of mining equipment has a price.
It's up to you to do your due diligence and research your best options as well as be wary of scams/lies/false promises.
Your investments can be calculated as to what your profitability or what period of time you will be achieving.
Benefits
What might the benefits be, you ask? Well, there are many benefits as well as many downsides, the same as with any currency.
Consider this; Bitcoin and other alt-coins are Decentralized meaning they have no central authority, location or controlling power.
This means simply this, there can be no single group/government/individual in complete control at any point in time.
Government controls their currencies very differently than this, they pump money that they print, at will, into a system.
This gives a certain degree of control in how markets progress and function as a whole; It makes them dependent.
Doing things such as this, decreases the value of the currency over time; The faster the printing, the faster the drop.
Bitcoin is not subject to the inflation that can be created by any government, at will, thus, retaining it's value.
That does not mean it cannot be bought in large quantities by groups, but any group can buy mass quantities.
"If it's a 'currency' then why does it fluctuate much like a stock?" You might be wondering.
It's as simple as this, there are a set amount of Bitcoin in circulation and a certain amount is created every set variable.
There are set amounts of Bitcoin released after every solved block.
The amount of people investing into Bitcoin and selling Bitcoin directly affects the price.
When more people are selling, there is more Bitcoin un-owned, or owned by groups/individuals in higher quantities.
That being said, it's value is decreased.
The opposite goes for when it is being bought/received.
Less is in circulation, thus, making it more valuable.
It's simple laws of Supply and Demand as to why Bitcoin varies.
Bitcoin has reached a high of around $1200 due to the belief in it's security and anonymity.
That's 1200 american dollars.. For ONE Bitcoin.
Even as I type this, they are worth $384 each.
The other huge thing about Bitcoin, is the ability to send any portion of one, up to a ten-millionth.
That's quite a bit of versatility!
In summation, Bitcoin retains it's value by having a set amount in circulation at any given time, no more, no less.
The ability to invest in the mining of Bitcoin, allows anyone to get their hands on fractions of Bitcoin.
It opens financial doorways to even the average, hard-working, lower-class, that is in a constant struggle.
So why mining?
If you can invest in enough equipment, either by earning free Bitcoin, or investing your own money, you can earn entire Bitcoins.
The frequency that you collect an entire Bitcoin is directly linked to how much you invest/re-invest.
The re-investing is key to higher gains.
While you are waiting longer for a payout.. In turn, you are generating a higher payout when you do collect.
..and the next time you collect.. and the next.. so on.. so forth..
I call the method "stacking" and it applies to mining in many aspects.
"Stacking" simply means (to me) investing the minimum amount you can, as soon as your miners have earned enough.
In my theory, it will produce more and more faster, while you continue to invest in higher tier miners.
After cycling that for a while, your return would be larger.
Let's say I mine 1 Bitcoin a week and I re-invest that Bitcoin immediately!
Then I start mining at additional power equal to whatever that one Bitcoin could get me.
By the next week, my payout is higher, I re-invest, the next week, even higher..
You see get the picture, just stop when you're comfortable with what you're collecting each go-round.
Another side to mining Bitcoin, is that it is Passive Income meaning once you invest, the hardware does the work for you.
Simply put, you gain Bitcoin (Actual Value) while you do just about anything.. Just come back and collect!
Although, be warned, there can be downsides to mining such as:
Upkeep costing more than you're earning.
Untrustworthy sites/staff/people. (Although you face the same issues with credit cards/identity theft/scams every day as is.)
Cloud mining sites without ddos protection getting ddosed.
Really long time before you get a return.
Many of these can be avoided simply by doing your due diligence.. Although some are just unpredictable.
Just keep in mind that the world is full of bad and good as is and you're liable to see both in any circumstances!
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