How to Mine Bitcoin and Make Millions of Dollars Like a Boss
Looking to live like a high roller without having to put in 30 years climbing up the corporate ladder. Mining bitcoins could be your way to the top. Results may vary.
The internet was on fire in 2017 with tales of lucky investors making millions of the back of bitcoins. The price skyrocketed to $19,000 per bitcoin (currently around $4,000 per bitcoin) and a lot of people made and lost a lot of money.
Now, everyone is banking on the price taking off again. We can’t say for sure whether or not this will actually happen. It’s a very uncertain game to bet on. Some observers say the next jump is coming, while others claim it’ll be worthless in just a few years.
Who you believe is your own choice. Whether you invest thousands of dollars into the cryptocurrency in the hope that its value jumps is also your own choice – but it’s a very risky one.
What if there was another way to earn bitcoin that didn’t involve spending your own money? Well, technically there is. Mining bitcoin is a way to earn bitcoins without spending any money on them (in theory, at least). It used to be a lot easier and tech savvy people with some CPUs lying about could give it a go. Nowadays the story is a little different.
In this post we’ll go over what mining bitcoin actually means, how to do it, and what you would need to do it.
What is bitcoin mining?
Bitcoin mining isn’t just about magically processing new bitcoin. Although, that is part of it. ‘Miners’ are computers around the world that verify transactions made by people spending bitcoin. When someone makes a transaction with bitcoin, a complex math equation must be solved before the transaction goes through. This verifies that validity of the transaction (much like the bank does when you make an online payment). This is what keeps the bitcoin network trustworthy.
Once the math equation is solved (which is much too complicated to be solved by hand – current odds of solving are 1 in 6 trillion), the transactions are added to the ‘blockchain’ – which is the heart of bitcoin’s security network.
The equation is sent out as soon as the transaction is attempted and every computer connected to the bitcoin network (miners) will race to solve it. The first one to solve it will receive some bitcoin as a reward. In this way, mining bitcoins can become incredibly profitable, especially if the value of the coins skyrockets again.
So, in short, bitcoin mining is the process whereby all the computers on the bitcoin network try to solve math puzzles to verify people’s bitcoin transactions and get rewarded for doing so. Weird, isn’t it.
How can I start mining bitcoin?
There are a few ways you can do this. Theoretically, you could use your computer or even your phone to mine bitcoin. That being said, this isn’t going to get you anywhere these days because the difficulty of the equations (and thus the amount of processing power required to solve them) is constantly increasing. You’d simply burn out your computer’s CPU if you tried to mine bitcoin on it today.
OPTION I: Buy mining rig
To mine bitcoin effectively, you’d need to invest in a mining rig. These can be purchased from online stores and they usually cost around $3,000 – although if you want ones with much more power then of course the price can get a lot higher. On top of that, if you really want to mine like crazy, then having 15 or 150 rigs is preferable to just one. Companies are being formed to do exactly this, in fact.
On top of the cost of buying a rig, you’ll need to maintain it and pay for the massive amount of electricity needed to keep it running. These costs can add up to a small fortune.
Option II: Cloud mining
Since there are now companies with tons of rigs mining away merrily, you can now pay to rent some of this power and claim a share of any bitcoin made from it. This is a handy way to go as it’s much cheaper than maintaining your own rig. That being said, what’s to stop your rig from striking it big and the company simply not telling you and keeping all the bitcoins for themselves?
In theory this wouldn’t happen, but I’m a skeptical person.
Option III: Hack millions of computers and use them to mine bitcoin for you.
Okay, so we’re not actually suggesting you do this. There have been instances in the past, however, where people have installed apps that actually did this without them even realizing it. This is more of a warning to be careful what you’re installing on your device…
Is bitcoin mining worth the investment?
It really depends how you look at it. Some pundits say that a single bitcoin could be worth up to $500,000 in a few years’ time, while others reckon it’ll be worthless. Hedge your bets. Maybe it’s better to just spend $4,000 and actually own a bitcoin than spend $3,000 on the off chance that you might mine one after spending another $3,000 on electricity bills.
Seriously, it’s worth considering just buying bitcoin on an exchange and keeping them safe in your wallet rather than investing massive amounts of cash into mining equipment that could even become illegal to operate one day.
So, if you really think that it’s worth investing in a mining rig, then go for it, but frankly, we think you’re better off just buying bitcoin or renting some space in a cloud mining company.