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Treasure Hunter Finds Long-Lost Box with $46K. Guess What Devaluation Did

The host of the YouTube show “Rediscover Lost,” Keith Wille, performed a miracle for a family in Massachusetts. He found $46.000 hidden in the attic since the fifties. Back then, it was the equivalent of $421.603 today. That means it lost approximately 90% of its purchasing power. Devaluation is devastating. What does this say about […]

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The host of the YouTube show “Rediscover Lost,” Keith Wille, performed a miracle for a family in Massachusetts. He found $46.000 hidden in the attic since the fifties. Back then, it was the equivalent of $421.603 today. That means it lost approximately 90% of its purchasing power. Devaluation is devastating.

What does this say about a deflationary currency like Bitcoin?

We’ll answer that, but first, let’s get back to the story. 

Related Reading | Don’t Get Hoodwinked by Hidden Bitcoin Trading Fees

Finding the metal box

The family wanted to sell a house, but the rumor of buried treasure loomed above them. Then, as WIlle tells us in the show notes:

After years of failed attempts, this family grew tired of trying to figure out if a metal detector would work indoors and even hired a construction contractor to find the treasure supposedly hidden under the floor boards. The family eventually found me online and hired me to figure out where grandpa hid his money.

Armed with a metal detector and an endoscope camera, he found the metal box in less than two hours. From the recovered money, it was obvious that the package was under those floors since the fifties. Masslive reports:

Cash was packed to the lid of a metal box in the bundles, with individual bills dating all the way back to 1934, 1935 and 1950. The date Dec. 19, 1958, along with a teller number, was stamped on each currency strap.

Related Reading | Huobi Ends 2020 With Fireworks, Gift Giveaways, and a $1 Million Prize

Collectible bills from a better time

To make the story more interesting, some of those bills were Silver Dollar Certificates and might be worth more than their devalued face value. That means they come from a time when money was sound like Bitcoin is. About the Silver Dollar Certificates, Investopedia tells us:

It was a type of legal tender that was issued by the federal government in the late 1800s. As the name suggests, the holder of a certificate could redeem it for a certain amount of silver. One certificate allowed investors to hold silver without having to buy the precious metal itself.

So, basically, they come from a time when money was backed by precious metal and the government couldn’t print it at will. A time when coins weighted. A time when every bill was a stock and devaluation an idea.

BTCUSD All Time History Index chart

BTCUSD all time history on Index | Source: BTC/USD on TradingView.com

Devaluation is as simple as that

Famously, the U.S. government paid for the COVID crisis with newly printed money. The total quantity of new bills injected into the economy is a matter of much speculation and rumor. We could safely say that it was a lot, though. And they might print a lot more in the near future.

All of that printing devalues the Dollar in your pocket, it’s as simple as that.  That’s what devaluation and inflation mean.

On the other hand, there will only be 21 million Bitcoin and the block rewards keep getting slashed by half every cycle. A finite amount and a decrease in availability generate deflation. It’s as simple as that.

Photo by Roman Kraft on Unsplash - Charts: TradingView

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinist.com/treasure-hunter-finds-long-lost-box-with-46k-guess-what-devaluation-did/?utm_source=rss&utm_medium=rss&utm_campaign=treasure-hunter-finds-long-lost-box-with-46k-guess-what-devaluation-did

Blockchain

The Rise of NFTs: Exploring the Use Cases Beyond the Art Industry

[Featured Content] Non-fungible tokens will surely go down in the history books of the cryptocurrency saga. Despite marking its powerful comeback in 2021, this mania still bears the strong scent of the crowdfunding trend. A considerable amount of time has gone after the insane popularity of CryptoKittens Dapps that managed to take down the whole […]

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[Featured Content]

Non-fungible tokens will surely go down in the history books of the cryptocurrency saga. Despite marking its powerful comeback in 2021, this mania still bears the strong scent of the crowdfunding trend.

A considerable amount of time has gone after the insane popularity of CryptoKittens Dapps that managed to take down the whole Ethereum network back in the day. The new market development spiral can ring the bell again and attract more sharks due to the tremendous growth of the crypto market over the last year.

With Bitcoin and Ethereum seeing major gains in short timeframes, a gateway to new opportunities opened for those willing to capitalize on the digital art euphoria. When the hopes of many will turn into dust and ashes of the burned-out expectations, what will stay?

nftcover_cover

Before it Went Mainstream

The new record-breaking deals changed the global paradigm. These latest purchases demonstrated that digitized art could be worth not thousands but millions, stepping toe to toe with traditional collectibles.

With the screaming headlines of the new incredible price tags for some NFTs or rare digital artwork sold for 6-digit figures, the whole space is now dominated by mania. Every artist and creative mind wants a share of the cryptocurrency slice. The Initial Coin Offering frenzy, as the dotcom bubble a few decades ago, has outlined that hype doesn’t last forever.

Most people associate NFTs with Ethereum’s ERC-721 token standard. However, the initial story started back in 2015 when non-fungible tokens were launched on top of Bitcoin using counterparty, an L2 solution for Bitcoin.

Some games used to mint NFT trading cards before the global euphoria hit. There is no wonder that non-fungible tokens finally gained international popularity since many people play games and have a particular passion for collecting things. Combined with the rising global interest in new technology, the NFT community started to grow like a wildfire.

What defines the price in the industry where NFTs are currently booming? The importance and influence of art on humanity can’t be measured, but the market is all about numbers.

In the end, it all boils down to people willing to pay astounding figures for anything they see as valuable — a thing that can be worthless to others. But the market dictates the rules of the game. The total value of NFT transactions reached $250 million last year, and such things incentivize others to follow.

It’s evident that the real potential of the NFT field lies beyond the speculative gains. The blockchain offers many disrupting options, but the actual value of the technology started to unravel only after the market began to mature.

First of all, NFT should not be correlated only with the art industry. The potential use cases go far beyond. The token standard can be used for music rights, access to websites, or tokenization of real-world assets: medical history, passports, company management shares, and real estate.

Evaluating the Issues

New technologies are praised for more than just innovation. Advancement often goes hand in hand with hazard. For example, the world’s ecology suffers as a substantial amount of electricity is needed to produce each NFT. Blockchain networks run around the clock and consume a lot of electricity, increasing carbon dioxide emissions. Eco-activists believe this technology brings global warming closer, and the ecological footprint is not a joke.

Scams, rug pulls, and bubbles are becoming commonplace at such ventures where a fast buck can be earned. After the hype surrounding the sale and purchase of crypto art, scammers have grossly entered the space.

A New Look at NFT Ownership

After the NFT hysteria in the art space is over, this market segment can make a turn in a different direction, and it’s worth researching in advance. Many areas can implement non-fungible tokens and benefit from their acceptance.

The music industry could see it as a natural fit. Investors who buy the NFTs of specific platforms may receive a share of the streaming revenue generated by the songs. The opportunity to monetize creative works through NFTs will continue to be a large part of space one way or another. It can also take the form of copyright ownership, royalty sharing, and licensing.

Moreover, such tokens can permanently change the system in which digital content copyrights work and protect crypto paintings and videos from illegal copying. Speaking of the business side, NFTs can also smoothen the burden of copyright for musicians and allow streaming services to license films and series more quickly. And it doesn’t just end in the creative space. Other possible use cases include insurance policies being sold as NFTs, representing ownership of any digital asset or domain addresses.

There are ideas on how to use NFT mechanics for project management in particular. Platforms like STEX plan to implement such tokens for boards of directors, which is a unique use case.

For example, it can be made that such a promotion can only happen after the transfer of an NFT to another, and this carries serious business opportunities.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/the-rise-of-nfts-exploring-the-use-cases-beyond-the-art-industry/

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Blockchain

The Rise of NFTs: Exploring the Use Cases Beyond the Art Industry

[Featured Content] Non-fungible tokens will surely go down in the history books of the cryptocurrency saga. Despite marking its powerful comeback in 2021, this mania still bears the strong scent of the crowdfunding trend. A considerable amount of time has gone after the insane popularity of CryptoKittens Dapps that managed to take down the whole […]

Avatar

Published

on

[Featured Content]

Non-fungible tokens will surely go down in the history books of the cryptocurrency saga. Despite marking its powerful comeback in 2021, this mania still bears the strong scent of the crowdfunding trend.

A considerable amount of time has gone after the insane popularity of CryptoKittens Dapps that managed to take down the whole Ethereum network back in the day. The new market development spiral can ring the bell again and attract more sharks due to the tremendous growth of the crypto market over the last year.

With Bitcoin and Ethereum seeing major gains in short timeframes, a gateway to new opportunities opened for those willing to capitalize on the digital art euphoria. When the hopes of many will turn into dust and ashes of the burned-out expectations, what will stay?

nftcover_cover

Before it Went Mainstream

The new record-breaking deals changed the global paradigm. These latest purchases demonstrated that digitized art could be worth not thousands but millions, stepping toe to toe with traditional collectibles.

With the screaming headlines of the new incredible price tags for some NFTs or rare digital artwork sold for 6-digit figures, the whole space is now dominated by mania. Every artist and creative mind wants a share of the cryptocurrency slice. The Initial Coin Offering frenzy, as the dotcom bubble a few decades ago, has outlined that hype doesn’t last forever.

Most people associate NFTs with Ethereum’s ERC-721 token standard. However, the initial story started back in 2015 when non-fungible tokens were launched on top of Bitcoin using counterparty, an L2 solution for Bitcoin.

Some games used to mint NFT trading cards before the global euphoria hit. There is no wonder that non-fungible tokens finally gained international popularity since many people play games and have a particular passion for collecting things. Combined with the rising global interest in new technology, the NFT community started to grow like a wildfire.

What defines the price in the industry where NFTs are currently booming? The importance and influence of art on humanity can’t be measured, but the market is all about numbers.

In the end, it all boils down to people willing to pay astounding figures for anything they see as valuable — a thing that can be worthless to others. But the market dictates the rules of the game. The total value of NFT transactions reached $250 million last year, and such things incentivize others to follow.

It’s evident that the real potential of the NFT field lies beyond the speculative gains. The blockchain offers many disrupting options, but the actual value of the technology started to unravel only after the market began to mature.

First of all, NFT should not be correlated only with the art industry. The potential use cases go far beyond. The token standard can be used for music rights, access to websites, or tokenization of real-world assets: medical history, passports, company management shares, and real estate.

Evaluating the Issues

New technologies are praised for more than just innovation. Advancement often goes hand in hand with hazard. For example, the world’s ecology suffers as a substantial amount of electricity is needed to produce each NFT. Blockchain networks run around the clock and consume a lot of electricity, increasing carbon dioxide emissions. Eco-activists believe this technology brings global warming closer, and the ecological footprint is not a joke.

Scams, rug pulls, and bubbles are becoming commonplace at such ventures where a fast buck can be earned. After the hype surrounding the sale and purchase of crypto art, scammers have grossly entered the space.

A New Look at NFT Ownership

After the NFT hysteria in the art space is over, this market segment can make a turn in a different direction, and it’s worth researching in advance. Many areas can implement non-fungible tokens and benefit from their acceptance.

The music industry could see it as a natural fit. Investors who buy the NFTs of specific platforms may receive a share of the streaming revenue generated by the songs. The opportunity to monetize creative works through NFTs will continue to be a large part of space one way or another. It can also take the form of copyright ownership, royalty sharing, and licensing.

Moreover, such tokens can permanently change the system in which digital content copyrights work and protect crypto paintings and videos from illegal copying. Speaking of the business side, NFTs can also smoothen the burden of copyright for musicians and allow streaming services to license films and series more quickly. And it doesn’t just end in the creative space. Other possible use cases include insurance policies being sold as NFTs, representing ownership of any digital asset or domain addresses.

There are ideas on how to use NFT mechanics for project management in particular. Platforms like STEX plan to implement such tokens for boards of directors, which is a unique use case.

For example, it can be made that such a promotion can only happen after the transfer of an NFT to another, and this carries serious business opportunities.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/the-rise-of-nfts-exploring-the-use-cases-beyond-the-art-industry/

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Blockchain

Mining Bitcoin: How to Mine Bitcoin

Introduction to Bitcoin Mining Mid-19th century California gold miners were called “forty-niners” after the year 1849, but this rush actually spanned from 1848-1853; it took five years for a quarter-million people to flood the state in search of “free wealth”. Satoshi Nakamoto first published the white paper on cryptocurrency back in 2008, and Bitcoin was … Continued

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Introduction to Bitcoin Mining

Mid-19th century California gold miners were called “forty-niners” after the year 1849, but this rush actually spanned from 1848-1853; it took five years for a quarter-million people to flood the state in search of “free wealth”. Satoshi Nakamoto first published the white paper on cryptocurrency back in 2008, and Bitcoin was launched in 2009. Today, in 2019, there are at least a million bitcoin miners around the world. A single bitcoin (or “1 BTC”) is worth almost $10,000, give or take a few hundred dollars, and there are around 1,800 new bitcoins mined every day, meaning there’s a whopping $18,000,000 being ‘created’ every day.

Not bad for ten years. No wonder everyone wants to learn how to mine bitcoin.

A Brief History on Money

Cryptocurrency is math that can be used as money.

Money is, fundamentally, an accounting of debt; you owe someone for a good or service, and giving them money erases that debt. Banks are giant ledgers, accounting for every transaction – when you paid for your coffee, this “ledger” sees that you lost $2 and the coffee shop gained $2.

Paper dollar bills do not record this specific transaction – who lost and who gained those $2 – but they act as evidence of a transaction having taken place at some point. In fiat currency, a state is the ultimate arbiter or holder of all the debts – and the one that mints, or makes, the currency in the first place. They account for how much currency they put out, and approximately how much is present now; the only road bump being that they do not know every transaction in between.

In cryptocurrency, no one person or entity controls a central ledger, because this “ledger” is effectively on every computer connected to the network of that currency; everyone has it. Since each unit of the cryptocurrency is composed of math, as opposed to physical substances like paper or gold, this math effectively records every transaction

So Where Does it Come From?

Fiat currencies are “made” (or rather, minted) by states, and accounted for by banks, but these currencies are often directly or indirectly made from precious metals that are mined from the Earth – which is why so many people flooded California in the mid-19th century. Minting is a middle step between the mining and the currency.

Cryptocurrency cuts out that middle step; bitcoin is “minted” and made from BTC mining.

If bitcoin is commercialized math, then mining is the process of solving all its equations. A common, yet accurate, joke explanation is, “imagine if you could solve puzzles, then use those solved puzzles as money”. Bitcoin is that, but on a much larger and astronomically more complex scale; bitcoin mining is both the process of solving puzzles, and the process of verifying other solves puzzles.

That said, these “puzzles” (called “blocks” in BTC mining) are operating on a very complicated scale. BTC mining is basically the process of racing to correctly the correct number out of 115,792,090,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 possible options – and doing so hundreds, thousands, maybe even millions of times a day. This takes some pretty hefty computing power.

How to Mine Bitcoin

Despite a lot of chatter about bitcoin mining software, it is really a matter of hardware; software is just the most accessible way to access this hardware.

“Winning” or solving – and receiving payout for – is a combination of computational power and a bit of luck. If you accomplish this, you can get about 12.5 bitcoins, though starting in 2020, that will become 6.25. The number of bitcoins you receive for solving a block cuts in half every 210,000 blocks – which is roughly every four years, since the blocks get more and more complicated over time. This will keep going until 21 million bitcoins have been mined, a cap built into the system. There are currently only 3.17 million bitcoin left to be mined.

How to Mine Bitcoin in the Hard(ware) Way

There are two types of “miners” you can buy: application-specific integrated circuit (ASIC) or graphics processing unit (GPU). These are not only very expensive to buy, but they also take up a lot of electricity and require a powerful network connection. This is why mining calculators exist – these are various apps and sites into which you can input details on your miner, your power cost, and your network cost, to figure out how much profit (if any, even) you will turn.

It is usually pretty low, and these days, mining with your own hardware is only really advised for people who already happen to have lots of hardware and great network on hand, and would not need to go out of their way to get those.

That just leaves…

How to Mine Bitcoin With Bitcoin Mining Software

At 12.5 BTC per block, when bitcoins are worth $10,000 each, that’s $1,250,000 on the line every time you are competing with other miners to “guess the right number” first. This takes far more computer power than most people can afford on their own.

As such, the most common way to get in on BTC mining is to join a collective of miners and “rent” the mining tools – known predominantly as cloud mining.

The biggest advantage is that there is a much lower barrier to entry when you cloud mine bitcoins. The biggest disadvantage is that instead of getting the reward all to yourself, you are splitting those bitcoins with other people, and typically a lot of them. Winning a million dollars doesn’t mean as much when you’re splitting it with a million people.

Step 1: Choose Your Wallet

Before you start working for a job, you want to know how you will be getting your pay. By the same token, before you start mining for bitcoins, you should know where you will keep your bitcoins once you earn them.

Online wallets are typically the most convenient, and easiest to use. They are also typically the most efficient for actually using your bitcoins to purchase goods and services, and you will have your bitcoins even if you lose all your devices. That said, this does put you in a similar position with a bank. If the host is experiencing heavy traffic or DDOS attacks, you may not be able to access your funds, and if they are hacked, you can lose your bitcoins entirely.

Hardware wallets are the opposite extreme. As physical objects, are completely offline, and thus cannot be hacked or otherwise remotely attacked. As long as you have your hardware wallet and a device to access it with, you will be able to access your funds. But what you gain in remote security is lost in personal security; if you lose your device or it’s physically stolen from you, you lose your bitcoins.
The middle-ground between these is “software wallets” or “desktop wallets” (though these can also be mobile apps). These are on your local device, so even if exchanges go down or are attacked, you still have your bitcoins, and the only way you can lose them to remote exploitation is if you, the specific individual, are targeted and hacked, which is very unlikely. But, it can still be used to conduct transactions and otherwise go online as necessary. That said, this is also vulnerable to loss if you lose your physical device (i.e. if someone steals your computer).

Step 2: Find Your Cloud

Mining companies are the computing clouds or collectives of miners. While joining such a company might be couched in terms of renting the hardware, another way to look at it might be that you are investing.

The amount you invest, or the rate at which you rent, is known as a “mining package”, which you pick once you join a mining company. You can also invest ahead of time in new technology that will be coming out at a later date. That said, investing in something that doesn’t exist yet is always a heavy risk.

There are many sites in which you can find comparisons between companies, including user ratings and reviews. Be careful with the
reviews – while they can be insightful, many are also full of people attempting to get new ‘recruits’ specifically with referral codes, which will net the refer-er a small bonus or profit.

Step 3: Pick Your Pool

A “pool” is basically the team of miners that you choose to join up with, and contribute your invest or computing power. If you are just starting out mining bitcoins, you should start by joining an “older” (or rather, more established and vouched-for) pool, and perhaps one with lower fees. The payout or profit from these will usually be on the low side, but they are also less risky.

As you get the hang of bitcoin mining and learn how pools work, you can start venturing out to other pools that aren’t as established and carry higher risks, but also higher rewards.

Buy Bitcoin, Ethereum, XRP, and other cryptocurrencies on Coinsquare, the world’s home for cryptocurrency.


Coinsquare

Source: Coinsquare: Mining Bitcoin: How to Mine Bitcoin

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Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptocanucks.com/mining-bitcoin-how-to-mine-bitcoin/

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Blockchain

Mining Bitcoin: How to Mine Bitcoin

Introduction to Bitcoin Mining Mid-19th century California gold miners were called “forty-niners” after the year 1849, but this rush actually spanned from 1848-1853; it took five years for a quarter-million people to flood the state in search of “free wealth”. Satoshi Nakamoto first published the white paper on cryptocurrency back in 2008, and Bitcoin was … Continued

The post Mining Bitcoin: How to Mine Bitcoin appeared first on CryptoCanucks.

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Introduction to Bitcoin Mining

Mid-19th century California gold miners were called “forty-niners” after the year 1849, but this rush actually spanned from 1848-1853; it took five years for a quarter-million people to flood the state in search of “free wealth”. Satoshi Nakamoto first published the white paper on cryptocurrency back in 2008, and Bitcoin was launched in 2009. Today, in 2019, there are at least a million bitcoin miners around the world. A single bitcoin (or “1 BTC”) is worth almost $10,000, give or take a few hundred dollars, and there are around 1,800 new bitcoins mined every day, meaning there’s a whopping $18,000,000 being ‘created’ every day.

Not bad for ten years. No wonder everyone wants to learn how to mine bitcoin.

A Brief History on Money

Cryptocurrency is math that can be used as money.

Money is, fundamentally, an accounting of debt; you owe someone for a good or service, and giving them money erases that debt. Banks are giant ledgers, accounting for every transaction – when you paid for your coffee, this “ledger” sees that you lost $2 and the coffee shop gained $2.

Paper dollar bills do not record this specific transaction – who lost and who gained those $2 – but they act as evidence of a transaction having taken place at some point. In fiat currency, a state is the ultimate arbiter or holder of all the debts – and the one that mints, or makes, the currency in the first place. They account for how much currency they put out, and approximately how much is present now; the only road bump being that they do not know every transaction in between.

In cryptocurrency, no one person or entity controls a central ledger, because this “ledger” is effectively on every computer connected to the network of that currency; everyone has it. Since each unit of the cryptocurrency is composed of math, as opposed to physical substances like paper or gold, this math effectively records every transaction

So Where Does it Come From?

Fiat currencies are “made” (or rather, minted) by states, and accounted for by banks, but these currencies are often directly or indirectly made from precious metals that are mined from the Earth – which is why so many people flooded California in the mid-19th century. Minting is a middle step between the mining and the currency.

Cryptocurrency cuts out that middle step; bitcoin is “minted” and made from BTC mining.

If bitcoin is commercialized math, then mining is the process of solving all its equations. A common, yet accurate, joke explanation is, “imagine if you could solve puzzles, then use those solved puzzles as money”. Bitcoin is that, but on a much larger and astronomically more complex scale; bitcoin mining is both the process of solving puzzles, and the process of verifying other solves puzzles.

That said, these “puzzles” (called “blocks” in BTC mining) are operating on a very complicated scale. BTC mining is basically the process of racing to correctly the correct number out of 115,792,090,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 possible options – and doing so hundreds, thousands, maybe even millions of times a day. This takes some pretty hefty computing power.

How to Mine Bitcoin

Despite a lot of chatter about bitcoin mining software, it is really a matter of hardware; software is just the most accessible way to access this hardware.

“Winning” or solving – and receiving payout for – is a combination of computational power and a bit of luck. If you accomplish this, you can get about 12.5 bitcoins, though starting in 2020, that will become 6.25. The number of bitcoins you receive for solving a block cuts in half every 210,000 blocks – which is roughly every four years, since the blocks get more and more complicated over time. This will keep going until 21 million bitcoins have been mined, a cap built into the system. There are currently only 3.17 million bitcoin left to be mined.

How to Mine Bitcoin in the Hard(ware) Way

There are two types of “miners” you can buy: application-specific integrated circuit (ASIC) or graphics processing unit (GPU). These are not only very expensive to buy, but they also take up a lot of electricity and require a powerful network connection. This is why mining calculators exist – these are various apps and sites into which you can input details on your miner, your power cost, and your network cost, to figure out how much profit (if any, even) you will turn.

It is usually pretty low, and these days, mining with your own hardware is only really advised for people who already happen to have lots of hardware and great network on hand, and would not need to go out of their way to get those.

That just leaves…

How to Mine Bitcoin With Bitcoin Mining Software

At 12.5 BTC per block, when bitcoins are worth $10,000 each, that’s $1,250,000 on the line every time you are competing with other miners to “guess the right number” first. This takes far more computer power than most people can afford on their own.

As such, the most common way to get in on BTC mining is to join a collective of miners and “rent” the mining tools – known predominantly as cloud mining.

The biggest advantage is that there is a much lower barrier to entry when you cloud mine bitcoins. The biggest disadvantage is that instead of getting the reward all to yourself, you are splitting those bitcoins with other people, and typically a lot of them. Winning a million dollars doesn’t mean as much when you’re splitting it with a million people.

Step 1: Choose Your Wallet

Before you start working for a job, you want to know how you will be getting your pay. By the same token, before you start mining for bitcoins, you should know where you will keep your bitcoins once you earn them.

Online wallets are typically the most convenient, and easiest to use. They are also typically the most efficient for actually using your bitcoins to purchase goods and services, and you will have your bitcoins even if you lose all your devices. That said, this does put you in a similar position with a bank. If the host is experiencing heavy traffic or DDOS attacks, you may not be able to access your funds, and if they are hacked, you can lose your bitcoins entirely.

Hardware wallets are the opposite extreme. As physical objects, are completely offline, and thus cannot be hacked or otherwise remotely attacked. As long as you have your hardware wallet and a device to access it with, you will be able to access your funds. But what you gain in remote security is lost in personal security; if you lose your device or it’s physically stolen from you, you lose your bitcoins.
The middle-ground between these is “software wallets” or “desktop wallets” (though these can also be mobile apps). These are on your local device, so even if exchanges go down or are attacked, you still have your bitcoins, and the only way you can lose them to remote exploitation is if you, the specific individual, are targeted and hacked, which is very unlikely. But, it can still be used to conduct transactions and otherwise go online as necessary. That said, this is also vulnerable to loss if you lose your physical device (i.e. if someone steals your computer).

Step 2: Find Your Cloud

Mining companies are the computing clouds or collectives of miners. While joining such a company might be couched in terms of renting the hardware, another way to look at it might be that you are investing.

The amount you invest, or the rate at which you rent, is known as a “mining package”, which you pick once you join a mining company. You can also invest ahead of time in new technology that will be coming out at a later date. That said, investing in something that doesn’t exist yet is always a heavy risk.

There are many sites in which you can find comparisons between companies, including user ratings and reviews. Be careful with the
reviews – while they can be insightful, many are also full of people attempting to get new ‘recruits’ specifically with referral codes, which will net the refer-er a small bonus or profit.

Step 3: Pick Your Pool

A “pool” is basically the team of miners that you choose to join up with, and contribute your invest or computing power. If you are just starting out mining bitcoins, you should start by joining an “older” (or rather, more established and vouched-for) pool, and perhaps one with lower fees. The payout or profit from these will usually be on the low side, but they are also less risky.

As you get the hang of bitcoin mining and learn how pools work, you can start venturing out to other pools that aren’t as established and carry higher risks, but also higher rewards.

Buy Bitcoin, Ethereum, XRP, and other cryptocurrencies on Coinsquare, the world’s home for cryptocurrency.


Coinsquare

Source: Coinsquare: Mining Bitcoin: How to Mine Bitcoin

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