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5 Benefits of mining for Bitcoin

mining

Most of us online consumers today may have already heard about Bitcoin, cryptocurrencies, and blockchain technology at one point or another.

Some of us may have grown our interest in these revolutionary digital assets and have invested our time doing research as well as our money on buying cryptocurrencies that we believe in.

However, there are still many of us who are still clueless about Bitcoin, the technology behind it, and its advantages.

Bitcoin, together with other cryptocurrencies, offer an innovative way for its users to transfer funds, complete payments, and hold these assets for future use. Unlike other forms of electronic money, transacting with Bitcoin is purely peer-to-peer and is almost impossible to be hacked.

The transactions are confirmed by the network through thousands and thousands of mining hardware scattered all around the world. All you need to have in order to start mining are high power GPUs, a steady source of electricity, and internet connection.

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Here below are five benefits of mining Bitcoin

1 – Earn Bitcoin as a reward.

Bitcoin transactions are compiled into groups called blocks and confirmed roughly every 10 minutes. Through a series of mathematical equations, mining computers will attempt to solve a block and the first one to successfully do it will receive the block reward currently set at 12.5 Bitcoins.

Miners will also receive all the transaction fees that are included in the block. As you can see, Bitcoin mining can be a good source of passive income if done properly.

2 – Avoid high fees and get your coins instantly.

In contrast to buying cryptocurrencies, mining Bitcoin involves smaller fees (if you decide to join a pool) and the transactions are usually faster. With Bitcoin mining, you can save from deposit and withdrawal fees, as well as from transfer and trading fees.

The rewards can also be sent to your wallet in almost real-time after your request has been made.

3 – You may either join a pool or try your luck.

To increase your chances of earning Bitcoin, you may consider joining a pool. A single pool combines the hash power of all miners involved in order to increase the chances of solving a block. Once the reward has been sent, the amount will be split according to the hash rate that you have contributed to the pool.

You also have the option to try your luck by mining Bitcoin all by yourself. Your chances of solving a block might be very slim, but the amount of rewards you may get will surely be worth the risk.

4 – Help strengthen the security of the network.

As more and more miners contribute hash power to the network, it becomes less vulnerable to 50% + 1 attacks. Cybercriminals would need to gain control over more than half of the Bitcoin mining equipment simultaneously in order to disrupt the Bitcoin network, which is almost close to zero in probability. The participation of miners greatly helps to the stability of the network.

initial coin offering report

5 – Earn other cryptocurrencies from your hardware.

Depending on the quality of your hardware, electricity costs, and the current price of Bitcoin, Bitcoin mining can have different rates of profitability. Nonetheless, you may always switch to other currencies depending on what you see is the most profitable.

Here is a list of cryptocurrencies and their current prices to know which ones are the best to mine at any given point in time.

Conclusion

Are you a cryptocurrency investor? Do you mine any of the digital assets? What are your experiences?

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Enstine Muki
 

Certified Cryptocurrency Expert, Problogger and Serial Entrepreneur

Dharmik Babariya

Hey Enstine,

Such a great way you explain the benefits of bitcoin. I am also investing in bitcoin. Thanks for sharing such a great article.

Regards,
Dharmik Babariya

Munna

Hi.
I don’t recommend bitcoin mining anymore. Why? Because the price is low now and I don’t have free electricity. So if you are living in china, then it is a good choice to mine btc.

Philip

Nstine,

What is hash power?

I am aware that you need to solve maths equations to unlock bitcoin on your own but I suppose we need to be maths geniuses?

One thing I read is that when you pay via BitCoin there is no trace of where it came from, so, you can’t prove that you paid for anything – is this true?

Thanks again, it was very illuminating.

– Philip.

    Enstine Muki

    So sweet to have you hear Phil and thanks for the comment.
    Hash power is machine mining power. It is the measurement unit of the processing power of the Bitcoin network.

    Yes anonymity is one of the strong points of Bitcoin network called Blockchain. To function on the network only need public and private keys.

    The public key is your address to receive funds. If someone has to send you some bitcoin, he sends to your public address. A typical example looks like this: 1LxgntkZdtd7BftE4SnKdmKvGipNT9WaiY

    The private address is like your pass to unlock access to the blockchain. It’s hidden and secret

    So transactions are between public addresses. No name, no addresses, no phone numbers, etc attached to these public addresses. So there is absolutely no one to link a transaction to an individual.

    But the government is fighting this by imposing KYC/AML measures. This requires you to identify yourself (Your Identity and Address) before doing some cryptocurrency transaction. That’s why to function on some exchanges, you are required to submit your Passport/Id card and a copy of any utility bill or bank statement.

    Did I answer the question?

Aliha

Such a great way you explain the benefits of bitcoin. I will also invest bitcoin. Thanks for sharing such a great article.

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