1 Bitcoin was worth close to 60000 USD in May and April 2021. And just by Elon Musk’s tweet on Twitter the price has gone down and fluctuating. What is Bitcoin? It is digital money that is free of bank fees, regulations, and its instant. This Cryptocurrency was birth in 2021-year 2008 by a not popular group of persons or persons with the name Satoshi Nakamoto.
However, one can invest with 1 Bitcoin. That’s you can invest $1 bitcoin, one BTC is equivalent to 100,000,000 Satoshi. Therefore, you can invest as small as $1 in bitcoin.
1 bitcoin is the value of one bitcoin, the value of bitcoin is majorly based on the supply and market demand for the coin. Also, from the availability of alternative digital currencies, their supply and price availability, and mining rewards.
Also, the intrinsic value can be estimated by computing the average marginal cost of production of a bitcoin at any given point in time, based on the block reward, energy efficiency of mining hardware, and mining difficulty.
Unlike stock, holding a company bitcoin does not mean ownership. When you own bitcoin, it means owning the digital currency. Owning US$1 is owning the paper currency. Bitcoin miners earn rewards for completing blocks of verified transactions.
There are steps in mining Bitcoin when you mine, you earn cryptocurrency without you paying money. To get started;
Get a Bitcoin Mining Rig
To start mining you need to have a mining rig. From the history of Bitcoin, miners use just ordinary computers and graph cards, but today not anymore. However, Bitcoin is mined by special hardware that is designed for mining Bitcoin or other currencies that are on the same algorithm.
This known as ASIC (Application-Specific Integrated Circuit Chips), use less energy and mines Bitcoin much faster and is expensive.
How to Choose ASIC Mining Rig
To begin mining, you’ll have to pay more attention to the parameter selection, power consumption, performance (hash rate), and price. The hash rate here is the attempt to solve a block that a machine can take each second.
To achieve this, you’ll need to check out different miner’s reviews and take the one that is favorable to you. Get to ASIC Miners to get detailed information about any new miners at https://www.asicminervalue.com.
Importantly, know that it’s very hard to get the device nowadays as demand is very high. Before you get a miner try and calculate the profitability in an online calculator at https://www.nicehash.com/profitability-calculator.
Outside the parameters of a mining rig, including the price of electricity, fees from the mining pool, or the level of mining difficulty when calculating. You’ll know if the mining will yield profit or the amount it takes to invest in the beginning.
Entering a mining pool is the best for any miner, using a single machine you cannot produce Bitcoin for the entire world on your own. However, a group if miners come together to and Bitcoin are mined. The gain is then divided among the group members as they contributed.
Also, members of a pool are to pay a fee to the operator of the pool, and the fee is always about 0 – 2% of the earning received. The earning may be low but is steady. The year 2017 graph illustrates the representative of the biggest pools check out the comparison of mining pools on Bitcoin Wiki https://en.bitcoin.it/wiki/comparison_of_mining_pool.
You can make your choice from different pools, but Slush Pool is recommended for beginners and it’s the first pool that’s incredible and it’s developed by Czech programmer Marek Palatinus. Once you choose a mining pool, get register on the website, and set your afterward, you’ll receive an ID for your miner.
Get a Mining Programmed in your Computer
After you have done the above, get your hardware, choose a mining pool. Next, you’ll need to get a mining client to run on your computer. This can connect you to Blockchain and Bitcoin network. Mining software offers work to miners, received the complete outcomes of their work, and plus information back to the blockchain.
Additionally, Bitcoin mining software monitors miner’s activities and shows basic statistics like hash rate, temperature, cooling, average mining speed. There are various types of programs that can be used to mine Bitcoin. Even the best operating system has its merit and demerit and most mining pools have their own software.
Nice hash miner is very recommendable, it’s easy to use, it can mine multiple cryptocurrencies and instantly choose an algorithm that is very profitable now.
Bitcoin price is basically affected by its supply and the demand in the market for the coin. Also, its availability and competition with other Cryptocurrencies. However, since Bitcoin is not regulated by the government.
Hence, inflation rates, economic growth measurements, and monetary policy do affect the value and its price. Here are the factors that affect bitcoin price. There are as follows:
- The cost of production of a bitcoin via the mining process.
- Demand and Supply on the market of Bitcoin.
- Numbers of competitors on Cryptocurrencies.
- The internal governance.
- Exchange rates on trading.
- Sales regulations.
- Rewards offered to Bitcoin miners to verify transactions to Blockchain.
Bitcoin price is determined by those factors to outline above. Therefore 1 bitcoin is very valuable and it determines by the market supply and demand on the coin.