Bitcoin is in the headlines because of the numerous bull runs that it has made in the past few years. In 2017 the value of a single Bitcoin reached a staggering mark of 20,000 US dollars. Then again in the year 2021, the value of a bitcoin for the first time crossed the 50,000 US dollar mark reaching its highest mark to date, that is 64000 US dollars.
Investment and trading activities in the crypto market have increased substantially in the past few years. Multinational corporations like Tesla and financial institutions like PayPal and JP Morgan have made investments in blockchain technology to make the transactions faster and more secure.
With the proliferation of trading applications go url With a user-friendly interface and easy trading function, trading in the crypto market has become much simpler and easier. New traders are joining the bandwagon to invest in crypto as a store of value.
But is crypto trading the only way in which you can make money? Is there some other way in which you can earn Bitcoin other than trading? Let us find out.
Why most of us are busy e investing in crypto assets we have overlooked one of the best ways to earn cryptocurrency without investing. Yes, you got that right. It is possible to earn cryptocurrency without making a direct investment in the crypto market.
Mining is the process through which new cryptocurrencies are added into circulation. So what exactly is mining? Latest understand the concept of mining in simple and basic steps:
- A user with a crypto wallet and a private passkey makes a crypto transaction.
- A transaction has to be verified and audited to be accepted as a legitimate transaction.
- The miners download the transaction data in the mining rig to audit them.
- To verify a transaction, a miner has to generate the closest hash that will confirm the legality of the transaction status.
- For this, the minor has to solve complex mathematical equations with the help of his high-powered mining rig.
- Once the transaction has been verified through the generation of the right hash, it can be added to a new block in the blockchain.
- A new block is added to the existing blockchain ledger through a general consensus of all the computers in the blockchain network.
These steps sum up the complex process that goes into mining. Now the miners, for creating a new block into the blockchain system, earn rewards in cryptocurrency. For the creation of every new block, new bitcoins are distributed among the miners as a reward.
Currently, the reward for mining a block in the Bitcoin network is 6.25 BTC. The reward is not constant. Satoshi Nakamoto received a reward of 300 BTC for mining the Genesis block of the Bitcoin network. The reward value changes every 4 years, or after 210,000 valid blocks are mined.
How can you mine Bitcoin?
To mine Bitcoin, you need a personal computer or a desktop. The higher the power of the graphics processing unit in your computer is the faster the computer will be able to generate the hash that would be required to solve an equation. These are the basic requirements to run a full node on a computer system:
- Your system must run on the latest version of any of these operating systems- Mac OS, Windows, or Linux.
- The system that you are using must have a minimum of 7 gigabytes of free space in the hard disk.
- Your system should have a decent processing speed so that the disk space can be read or written at a minimum speed of a hundred MB per second.
- The system must have a minimum of 2GB random access memory.
- The system that you are using as a mining rig should be connected to an uninterrupted internet network. Your system should have unlimited upload and download speed.
Conclusion: easily available software such as Bitcoin Core allows you to have your own mining setup. Well then, what are you waiting for? Start mining today to earn cryptocurrencies.