The Bitcoin craze continues. It has all the exciting twists and turns of an amusement park roller coaster. Want to join in? You can buy Bitcoin at its current price. Then, hope it continues it’s upward trajectory, praying it doesn’t turn into a death spiral. But, is there any other way to profit from this cryptocurrency? How about learning how to mine it? Here are some things to think about if contemplating Bitcoin excavation.
It used to be that you could mine Bitcoin “with your computer CPU or high-speed video processor card.” This according to BitcoinMining.com. Not so any longer. The electricity used in the Bitcoin mining process has increased over the years. So much that it is “now using more electricity than 159 individual countries. More than Ireland or Nigeria,” as reported by PowerCompare. Keep in mind that there are only 195 countries total. So, be sure you have a super-efficient processor. Or, you may be spending more on electricity than you are earning in Bitcoin mining.
When mining Bitcoin, the computer used is called a “rig.” It performs “complex calculations on blocks of data which maintain the Bitcoin network,” according to a report from TechRadar. The power of the processor is just one of the factors in the payout. The calculations involved in the mining are continually increasing in complexity. This means that rigs now are often pooled. That way, the power of the group can be used in solving the complicated equations. These solutions result in the reward of Bitcoin. And, when the mining is successful, each participant gets to reap a share of the rewards. Keeping up with the computation requirements is important. So, it may be vital to join a mining pool as part of your excavation process.
Clouding mining for Bitcoin is less complicated. It doesn’t involve managing as much hardware as conventional Bitcoin mining. Cloud mining “only needs a home computer for communications, [and] optional Bitcoin wallets.” This as reported by Coindesk. So, no large outlays for power and equipment. However, according to an article by 99Bitcoins, “it seems like none of these cloud mining sites are profitable in the long run.” So, before you opt for clouding mining, you might need to sharpen your pencil. Make sure that this is a viable extraction method for you.