Bitcoin first hit markets in 2009. At the time, the cryptocurrency pioneer stressed the concept of a decentralized currency different from traditional currencies produced, distributed, and destroyed by governments. The United States Federal Reserve, similar to other governments, can change the value of the U.S. Dollar by minting new bills, destroying them, modifying interest rates, and a number of other economic policies. A decentralized currency can’t be controlled by governments, effectively working in the interest of the people.
Cryptocurrencies have recently caught on across financial markets, with just short of 4,000 unique altcoins, cryptocurrencies other than Bitcoin.
Transactions are sorted by people around the world who mine Bitcoin, confirming transactions’ legitimacy by building blockchains. In turn, miners are rewarded with small amounts of the cryptocurrency.
Bitcoin Mining is Very Expensive
Bitcoins are mined by running ASIC mining software. ASIC miners are super-powered computers designed exclusively for mining Bitcoin and other cryptocurrencies that can be mined using the technology. Miners purchase these expensive computers, connect them to a power source, tie them to a mining software, and witness Bitcoin accumulate.
Mining generally loses money, even though many people think that it’s profitable. You must factor in the cost of electricity, which is too expensive for making profits form mining. It’s not profitable even when energy is bought in bulk shares like large corporations do to power their spacey facilities, unfortunately. There are warehouses around the world dedicated solely to mining cryptocurrencies, many of which have equipment exceeding $1,000,000 in value. Because it’s so expensive to even begin to be competitive in mining cryptocurrencies like Bitcoin, it makes more sense to invest money into them.
To make that clear, the answer to the common question “What cryptocurrency should I mine?” is none of them. Instead, invest your money into cryptocurrencies.
Bitcoin changes wildly in value, although investing in it can be profitable. Ethereum is the second-most valuable cryptocurrency, having reached $400 per unit a couple of months ago. Litecoin is also pretty pricey. Ethereum Classic is commonly traded throughout cryptocurrency markets, as well.
OneCoin Offers Better Solution
OneCoin is a viable destination to invest hard-earned money in, featuring strict security that helps lift its value even further. It reached a $1,000,000,000 market cap in 2015, since then it’s continuously grown larger in trade volume.
Augur is growing in popularity, as well as value. Steemit, closely related to Steem Dollars, is a solid cryptocurrency investment, too.