Have you ever thought about mining the strongest cryptocurrency in the world with a low budget and becoming a big investor? Yes, I mean bitcoin. The shiny coin image with a weird B sculpted on that the whole world is admiring nowadays. If you are one of the millions of people that their eyes spark up in the circumstance of hearing the name “Bitcoin” you have come to the right place. Today you are going to learn answers to the following questions:
- What is bitcoin mining?
- How to mine bitcoin?
- How much does mining on your own costs?
- Is it even legal to do so?
- Is there a more profitable way than mining?
It was around 10 years ago when a really good joke about a new way of doing financial deals started to become the biggest one. At first no one really wanted to believe it, then everyone started going after this technological hype and began finding ways to gain enormous financial deals and ways of investment. One problem that many people faced after the cost jump was lack of investments and financial bias to do so, on the other hand the bity wonder hadn’t gained enough trust yet for people to start really putting time and investment into it (like their whole career time) .
Then one day, this weird word suddenly started gaining attention; “Mining the bit”. It was the thing needed for businesses and apps and all these organizations to trust the bit for the first time and start putting all the time into it. Because it was really the first time that there was a real and teachable and affordable way to make money out of Bitcoin.
But things went really differently in Iran. At first it wasn’t really known and the government didn’t really take it seriously so some Iranians started mining just like the rest of the world did and made gallons of money. But as usual mining started to gain attention so normally some started cheating you might say in the process, like using industrial electricity to mine and etc. So the government made some really strict rules for mining and after that most people thought that mining Bitcoin was totally banned in Iran and left the business.
Keep reading to the end to learn my secret way of mining without so much hardship and expensive equipment.
Steps and knowledge needed for mining Bitcoin
Learning about mining Bitcoin has its own unique way of teaching and if one tries to learn it any other way will risk losing lots of money or not making enough to keep mining and growing. So please keep up with me here and don’t skip even one word.
As you definitely know, the cryptocurrency market is so hot right now and expectedly there are many ways of making profit out of it. One way is mining Bitcoin with specific computer systems and industrial equipment. First you have to learn the whole process carefully in order to reach the income you desire and avoid the risk of getting arrested or losing all your money.
What does mining Bitcoin mean and how is it done?
If you read the article on the overall description of cryptocurrency and mainly bitcoin you already know that this type of finance is totally based on the online world, to be more specific they don’t exist physically. The reason for this is to be as efficient as possible while having great credit.
But the question that arises is how can I trust this kind of finance? Let’s look at it this way, when you buy a car or real estate what gives you the credit for owning it? Obviously, a license or lease. The license gives you the credit of ownership of that particular object.
Or let’s look at online money transactions; something many of us do on a daily basis. What gives you the credit to transfer money online without any physical money in the process?
You might say because the real money is somewhere in the bank but if you look closely, everything that we hold financial credit for whether it be money, credit or real estate lease, are all based on a financial agreement, something totally conventional.
What I mean is that the money that you hold in your hand, which is really a piece of paper, gets it’s credit from a totally conventional agreement that we all hold in our minds. This is also true for all cryptocurrencies and we have a global agreement that the number we see in our online wallet has actual financial credit. And the basis comes from financial deals, math operations and online services that are happening every second.
So now that you’ve gotten the main idea it’s time to learn how to mine bitcoin and start filling that wallet with green gold.
To answer this question I have to introduce the term blockchain which is a really sophisticated mathematical operation that is used for the whole cryptocurrency security system and gives it the option of being totally impenetrable.
So here we are with a new question. Who does this sophisticated impenetrable math operation? This is where things start to get exciting. Why? Because we don’t really have bitcoin mining in its literal form. No one goes to some online cave to look for any trace of bitcoin. Instead in order to keep bitcoin safe we give bitcoin servers permission to use our systems and information and do the mining for us and in return they fill our online wallet with the famous Bit.
To be precise, every new bitcoin that comes to existence needs a math operation to be solved in order to maintain existence and security. These math operations need powerful hardware to be done. This gave bitcoin owners the idea of using peoples hardware around the world to do the mining and in return give them their share of the bit.
What is the cost of mining bitcoin?
From an overall view this process is really expensive and hard to do. In Fact you’re gonna need more money to spend than you gain. This means that the Return of your initial investment is going to be drastically smaller if you want to do the mining yourself and the reason for that is the need for powerful, expensive and heavy machinery for bitcoin mining compared to investing in the crypto market. Why? Because in order to mine bitcoin you need to provide five main tools that four of them are definitely gonna cost you a fortune. Keep reading to learn about these five tools.
Making a wallet
This is the first tool you’re gonna need and it’s actually free! If you want a complete description and tutorial on crypto wallets read this article and learn how to make a wallet totally free.
But I’m gonna briefly review that article here. So a bitcoin wallet is exactly the same as your bank account number and you use it to gain and trade and spend bitcoin and all kinds of cryptocurrency. And in order to use bitcoin or any other crypto you need a wallet for it or you’re out of the game. If you don’t have a wallet as of now you can use sites like Atomic wallet or Trust wallet to make one for yourself and get your wallet number and start your bit journey.
Bitcoin Mining Hardware
Mining Bitcoin is different nowadays compared to its early days. In the old days it was relatively easy to do so and you could easily use your home personal laptop to mine some bit and no multi thousand dollar hardware was needed for it.
But now the game has changed. In fact, just months after the mining hustle started the process started to get harder and more expensive due to the way math operations get more complicated as more bitcoins are brought to existence and the only way for mining was using really expensive hardwares and industry levels of electricity supplies.
Nowadays you can only mine bitcoin using ASIC processors. I don’t mean you can’t use your normal daily laptop to mine but the amount of profit you’re gonna make from doing so is going to be really negligible.
However, the problem starts surfacing when you want to afford one of these monstrous ASIC processors. If you do some basic arithmetics you’ll find out you’re gonna need at least 60 million tomans ( estimately 20 thousand dollars ) to just have a return of investments in the first year and maybe start to really gain profit from the start of the second year.
And that’s not all. ASIC processors are not the only asset you have to pay hugely for, but also you have to pay for electricity and accessories and that’s when the process of mining on one’s own becomes a real deep challenge ( mainly impossible ).
Electricity
The biggest problem in this process is the electricity needed to mine just one bitcoin. You have to just visit one of the mining hardware stores and find out how much electricity they use. For example, most of these hardwares use four to five times the electricity a commercial complex uses in a year! Let that sink in for a moment. That is more than you can even think of.
But there are solutions for the electricity problems that unfortunately you can’t really use in Iran. In most countries using this much electricity is illegal unless you are an industrial or commercial user. So to mine bitcoin with your own hardware is really impossible. Unless you can get your hands on one of these hardwares or oddly enough afford the use of them and mine some bit.
Ventilation
Bitcoin mining hardwares make a lot of noise, so much that you can compare it to the sound of 10 vacuum cleaners working simultaneously. Moreover they start to get really hot and emit sun level heat after just hours of work. So you’re going to have to deal with the noise and the heat too because these things can actually be life threatening.
And dealing with these side effects need more and more bills to be paid and more and more heavily engineered constructions.
Internet Accessibility
As for the network connectivity you’ll need really fast and big bandwidth connections for mining and also they need to be totally stable to avoid the mining process being interrupted. But the upside is not much data download or upload is needed as the main goal is solving math operations and not downloading gigabytes of data.
Overview
Is there a more logical and profitable way to enter the bitcoin world?
Of course there is. We all know that trading and investing in bitcoin and any other cryptocurrency is the easiest and fastest way of gaining profit out of the crypto world. But don’t forget you are going to have to learn the way to do so just like any other profit gaining process.
How to do that, you ask? The best way is to start learning about the cryptocurrency market and technical and fundamental analysis of it.
It doesn’t matter the amount of initial money you have ,and don’t forget in national markets you don’t get paid based on your funds but your trading knowledge. So we have made a series of tutorials on cryptocurrency markets and ways of gaining profit off of them just for you. You don’t need any prior knowledge to start these courses as we have covered every little thing needed from the very beginning.
You just have to love the process and love making loads of money then you’re ready to start learning from the Mahan Teymouri Cryptocurrency crash course to enter the hustle.
This course is actually the cheapest, biggest and most reassuring one there is and teaches you everything you need to make money out of bitcoin and other cryptocurrencies.
If you’re ready to start your journey just click here.