Friday, June 17, 2016

On Bitcoin Mining 1

We haven't discussed Bitcoin or Bitcoin mining on this blog before and I have decided to spend a few posts discussing the digital currency. Hopefully you'll find it informative.

If you don't know too much about Bitcoin, there are three ways to look at it.
  1. It's digital money. If you want to buy something or send someone some money (worldwide!) without paying the high fees of PayPal, Western Union, and banks, then Bitcoin is a great way to do it. Transferring money with Bitcoin is very easy (once you have some) and there are no limits and only very TINY fees. Buying things with Bitcoin is also super easy (once you have some). Some places you can spend Bitcoin: Bitcoin Shop, Newegg.com, Overstock.com, TigerDirect.com, purse.io, spendbitcoins.com, Expedia.com, CheapAir.com.
  2. You can buy Bitcoin as an investment. If you're interested in Bitcoin as an investment, its price today (6/17/2016) is 753 dollars per 1 Bitcoin (BTC). Just a few weeks ago it was $400 or so. It has been rising steadily recently and one can only guess as to why, but one reason may be that the reward for solving a block in the blockchain will soon be halved from 25 Bitcoins to 12 Bitcoins. (The blockchain is the record of the transaction.) If you do want to buy Bitcoins it is getting easier than ever. You can buy fractions of a bitcoin as well, if you don't have $753 for a full Bitcoin. These are some places to buy Bitcoin

3.  You can mine for Bitcoins and use those mined Bitcoins to spend or send or use them as investment capital. To mine for Bitcoins you need to buy a special computer that's made especially to mine for Bitcoin. Bitcoin mining is one of those areas in life where you have to spend money to make money. You really need to go "all in" if you want to profit from mining Bitcoin. The biggest miners spend tens of thousands of dollars. Don't expect to make a profit if you spend $20 or $100. You can certainly enjoy Bitcoin mining as a hobby at this low investment but if you want to profit from Bitcoin mining you need to shell out at least hundreds of dollars and have a relatively low electricity cost. I will go more deeply into Bitcoin mining in subsequent posts.
In the following posts, I am not going to go into the history of Bitcoin or its creator or any other material that some other websites do a fine job covering (but I will try to point you to where the info lives). In these posts, I'm just going to discuss Bitcoin from my point of view, which is mainly the mining of Bitcoin for investment point of view. I hope you find it interesting!

(Some Black Arrow Prospero Bitcoin miners for sale here)

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