This is my first article here so hopefully it will be approved, I will share some points about 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 any government, it is basically a virtual currency and can be bought online with real money. So then apart from a decentralized currency what is its advantages, well you can transfer bitcoin anywhere in this world without many fees, you can be 100% anonymous while making transactions thanks to a technology called blockchain.So what’s the big deal about this you may ask, well let me tell you when it was first launched it was worth nothing but now 1 bitcoin = 6,689.35 $ which is a pretty impressive growth isn’t it?.
So how does this thing grow you may ask, well let me tell you how to maintain a blockchain there must be something called a ledger where all transactions must be note and to be a block in a blockchain a hashing function must be solved. and making bitcoin by solving hashes is called Mining Bitcoin.
To solve the hashing function people usually use graphics cards but over time bitcoin became more difficult to mine and dedicated hardware called ASIC miners were introduced.
So people who spend their time and money mining bitcoins will be rewarded with bitcoins and as more and more people become part of this blockchain its value will increase.
so how can i earn money bitcoin, there are two ways
1.you can trade bitcoin/altcoin(any cryptocurrency other than bitcoin is called altcoin, yes there are thousands of them)
2.you can mine them yourself
Both of these methods have their own advantages and disadvantages, because bitcoin is controlled by anyone it is extremely unreliable one day it may be worth 10,000$ and the next day it may fall to 100$. Trading basically means buying bitcoin for real money and praying that its price will go up and selling it when it does. This method is very risky and you may lose money rather than gain.
Or you can choose to mine bitcoins, but here’s what you need to think about, mining hardware is very expensive and mining requires a lot of electricity, also the difficulty of mining is increasing every day so you won’t get profits without long initial. investment.
That being said bitcoin trading and mining are two great ways to make money if you know what you are doing.