This is my first article here so hopefully this will be approved so I will share some things about it bitcoin and blockchain.
For those of you who don’t know what Bitcoin should I 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 using real money. So, apart from being a decentralized currency, what are its advantages, so you can transfer bitcoin anywhere in this world without much fees, you can be 100% anonymous while making transactions thanks to the so called technology. blockchain.So what’s the big deal about this you may ask, well let me tell you when it was first launched it had absolutely no value, but now 1 bitcoin = $6,689.35 that’s pretty impressive growth isn’t it?.
Well as this thing grows you may ask so let me tell you how to maintain a blockchain there must be something called a ledger where every transaction must be recorded and to become a block in the blockchain the hashing function must be solved and the production of bitcoins by solving of hashes is called Bitcoin mining.
To solve the hashing function, people usually used graphics cards, but as time went by, Bitcoin became more and 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 in bitcoins and as more people become part of this blockchain, its value will increase.
so how do i make money with 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 dig them yourself
Both of these methods have their advantages and disadvantages, because bitcoin is not controlled by anyone, it is extremely unreliable, one day it can be worth $10,000, and the next day it can fall to $100. Trading is basically buying bitcoins for real money and praying that its price goes up and selling it when it does. This approach is very risky and you may end up losing money instead of making any profit.
Or you could choose to mine bitcoins, but here’s what you should consider, mining hardware is super expensive and mining requires a lot of electricity, also the difficulty of mining is getting higher every day so you won’t be able to make some profit without high initial investment.
That said, Bitcoin trading and mining are two good ways to make money if you know what you’re doing.