Mining Bitcoin

What the heck is a bitcoin anyways? Bitcoin is the world’s first cryptocurrency, and is stored and exchanged securely on the internet through a digital ledger known as the blockchain.

Bitcoins are divisible into smaller units of currency known as satoshis (named after the original creator of Bitcoin). Each satoshi is worth 0.00000001 bitcoin.

There are only 21 million Bitcoins total – of which almost 17 million are already in circulation. There are a little over 4 million bitcoins left that are not in circulation yet.

The Bitcoin source code determines how many bitcoins are left. The limited fixed amount of 21 million contributes to the value of Bitcoins. This code is finalized and can never be altered.

Bitcoin transactions can be achieved at a very low cost, which is very appealing to individuals and businesses who buy and sell goods and services online. Bitcoin transactions are secured by military-grade cryptography, making them very safe to use.

Just like using an email address, all you need to send and receive payments using bitcoin is a bitcoin address. There are many services that make the process extremely simple, my favorite is currently the largest platform called Coinbase.

If you give Coinbase a try you’ll get $10 of free Bitcoin when you buy or sell at least $100 of digital currency.

The Truth about Mining for Bitcoins
I’ve done a tremendous amount of research, spending many hours and a chunk of change in trying to figure out how to profit from mining. The truth is this: the days of making a substantial profit from mining solo are over. There are several reasons for this.

Here are just a few:

The cost of mining hardware keeps increasing due to the demand for more processing power in order to solve the complex blockchains. If you are mining solo you will need a mining rig with minimum requirements, like the Bitmain Antminer S9 Bitcoin Miner, 0.098 J/GH Power Efficiency, 13.5TH/s.

You will need a power supply for your hardware, the most affordable and compatable is the AntMiner Power Supply (APW3++ 1200W@110v 1600W@220v w/ 10 Connectors) Finally, you will need a secure place to keep your Bitcoins once you mine them, such as the Trezor One by SatoshiLabs.

These upfront costs are now more difficult to recover overtime because the power needed to run a high powered rig long enough generates huge electricity bills from your utility company.

This is what I’ve learned:
Let an established Cloud Mining company with the infrastructure and talent do all the work for you and share in the profits. I use Genesis Cloud Mining for all my mining operations.

I mine for Bitcoin, Litecoin, and Ethereum. Think of it like you are simply renting your mining operation, or hashing power, then letting Genesis Mining handle all your cryptocurrency mining (and keep a share for themselves).

What are Bitcoin Faucets?
Bitcoin Faucets actually pay users Bitcoin to click around on their website. They get money from advertising – you get free bitcoin. It won’t make you rich, but you can dip your toe in the bitcoin world. Here are a few I like: Cointiply and FreeBitco.in

Still have questions about Bitcoin?
The best guide I’ve found so far on Amazon:
Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond
by McGraw-Hill Education

If you found this info helpful, buy me a beer!
I get thirsty writing these posts 🙂

My Bitcoin wallet address:
3EkEY6LrQn1t5oMd5QVSijnMAx5Wujt9gC

or my Litecoin wallet address:
MTnyxj8A1QmKjr6RdEZ69UTHmGBkqQgd3w
or my Ethereum wallet address:
0xA0aeAe007d165aF9f2bb394637d51719B754C5D6

New to Bitcoin? Get $10 of FREE Bitcoin when you buy or sell at least $100 of digital currency.

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