Bitcoin continues to reach heights like no other product or service has managed to do. At the moment, this cryptocurrency is valued at between $50,000 and $60,000, depending on the daily events. As you may know, Bitcoin has a very high volatility rate, which is the reason why it can’t have a stable value.
Its profitability is the reason why so many people join the network with each passing day. Some statistics have shown that there may be as many as 100,000 millionaires who managed to amass their wealth by trading with Bitcoin. At the heart of this process lies mining. We wanted to take a closer look at mining and explain everything you need to know about it.
This information is especially valuable to novice traders who are just learning the basics of how Bitcoin works.
What Is The Purpose Of Mining?
As you may know, mining plays a key role in Bitcoin’s network. Through this process, Bitcoin can remain stable and thrive. In layman’s terms, mining is a process in which you record and verify transactions made with this cryptocurrency.
Every successfully verified transaction is known as a block and it becomes a part of the blockchain, which is the main technology that powers Bitcoin’s network. Thanks to mining, Bitcoin does not need the computing power of banks, hence it excludes them and it is totally self-sustainable and highly decentralized. This also leads to one massive advantage that Bitcoin has over regular payment methods and that is instant payment processing.
Mining requires you to solve complex puzzles, but it is complicated and takes a lot of time.
The Rewards You Reap
Doing all of this would be pointless if miners would not any reap any rewards. The reward for mining is Bitcoins. Simply put, the more Bitcoin transactions you record, the more Bitcoins you will receive. After a certain time, you can use all of those Bitcoins to either pay for products online or trade them for a profit.
Reputable trading sites such as the Bitcoin Fortress provide registered traders with several advanced services that can help them maximize their profits. As for using Bitcoin as a payment method, there are numerous global brands that accept it.
Some of the most notable mentions here are Tesla Motors, Expedia, Overstock, Microsoft, Starbucks, Whole Foods, and Shopify. The great institutional interest is the reason why Bitcoin is so stable and its value is greater than any other cryptocurrency.
Why So Many People Mine Bitcoins?
The main question that people ask about mining is: If mining is so hard, then why do so many people do it? Can’t they resort to an alternative way of earning Bitcoins? Well, the answer to that is pretty simple. Even though Bitcoin mining is very hard and requires you to have a high-performance desktop device, it comes free of charge. This is a massive benefit, especially if you are planning on selling Bitcoins and making a profit. The revenue that you will make by trading Bitcoins after you mine them will be substantial.
But then again, this is not a simple process, which is why a lot of traders are looking for alternative ways to earn Bitcoins.
The main alternative of earning Bitcoins is to visit trading sites like the one we mentioned above and to buy them.This is a much faster way to get your hands on this cryptocurrency, but it comes with one flaw. Bitcoin is subject to daily changes, meaning that its price can rise and fall very often. There is a great chance of you buying Bitcoins and then being forced to sell them for a cheaper price and thus, lose money in the process.