It is quite trivial that the internet has made it possible to do almost anything with convenience, including the use of digital currencies such as bitcoins and other cryptocurrencies.
As a result, more and more businesses now accept cryptocurrencies as valid forms of payment, in addition to traditional currencies.
Among the first to experiment with the use of cryptocurrency as a payment option were small merchants who were part of the Bitcoin enthusiasts community, dating back to 2009-2010, with some of them conducting business on the grayish to illegal side.
As the years went by and cryptocurrencies became much more known, using them as a legit payment method gradually started gaining popularity in various sectors.
Retail big name businesses like software companies, car manufacturers, travel companies and even real estate agencies have started accepting cryptocurrency payments for their services. Freelancers and remote workers could also receive payments using cryptocurrency, which eliminates the need for worrying about exchange rates and transaction fees.
The first wave of adoptees included online casinos and sportsbooks who wished to find a safe and anonymous way to receive deposits and pay out winning to their customers. Today, most of the industry fully accepts this payment method. Gamblingsites.org, a site that reviews bitcoin online casinos and sportsbooks goes into detail on how to make the first step, explaining the pros and cons and other questions that may arise.
No doubt that the use of cryptocurrency has revolutionized how payments and transactions are made, making it easier and more convenient for individuals and businesses alike.
But wait, where does the money come from if no one is printing it?
Where the Coins Come From
It’s important to understand that there is a limit to the number of bitcoins being available – the number is set to 21 million, a number which hasn’t been reached yet. A larger number of bitcoins could result in too-wild swings of their prices.
The process of creating the coins is called mining, due to its finite resources as with mining gold.
How Does Bitcoin Mining Work?
In (relatively) short, bitcoin mining is the process of creating new bitcoins by solving complex mathematical problems that are encoded in the blockchain ledger. Mining involves using specialized computer hardware to perform very complex calculations to solve these problems, which are known as hashes. The first miner to solve a hash is rewarded with a new bitcoin and a transaction fee.
The abovementioned blockchain is closely related to bitcoin mining, as it is the public ledger that records every bitcoin transaction.
Once the transaction has been verified by the miner, it is added to the blockchain, and becomes part of the permanent public record of all bitcoin transactions.
It is a distributed system that is maintained by a network of computers worldwide. Each computer on the network has a copy of the blockchain ledger, which means that every transaction is recorded multiple times across the network. This makes the system highly secure, as there is no central point of control that could be compromised.
The Benefits of Bitcoin Mining
Supporting a more democratic system
Being part of the effort in creating a decentralized network which is not controlled by any authority that can abuse it.
Profit potential
Could be profitable for those that have access to the right mining equipment – directly earning from mining or by selling their mined coins on the open market.
Securing the system
Blockchain ledger records updated when mining ensure that the monetary system remains highly secure and extremely difficult to tamper with, making it more resistant to frauds than traditional payment systems.
Finally, Should you become a Bitcoin Miner as an Investment?
Probably not. Many commercial companies with large resources have entered this field, making the competition extremely fierce.
Before investing in bitcoin mining, it is important to consider the investment requirements, such as owning a good number of high-quality computer sets with mining as their main function, a reliable internet connection network, and a massive electricity source. These requirements are essential to ensure the efficiency and profitability of bitcoin mining.
Overall, bitcoin mining can be a lucrative investment, but it’s important to weigh the costs, requirements, and risks involved before making a decision.
