Bitcoin is one of the greatest virtual currencies on the market. Thanks to the fact that its value is second to none, a majority of novice traders decide to invest in Bitcoin as it is the most stable cryptocurrency and has far greater liquidity than the competition, which means that it can be converted into cash much faster.
One of the main ways through which users earned Bitcoins was mining. This is one of the main processes that powers Bitcoin’s blockchain, and it is often advertised as a free way to get your hands on this cryptocurrency.
But, as time went by, mining became less popular. We wanted to take a deeper look into that topic and explain why you should choose the alternative to mining. Not only that, but we’ll also see if Bitcoin mining is free, as many say. Let’s start.
What’s The Alternative?
Okay, let’s begin breaking down the topic by seeing the alternative. Logically, the second option to earn Bitcoins is to buy them. Up until a few years ago, the only option was Bitcoin ATMs, but since they charge a lot of fees, a need for change was required.
That change goes by the name of trading sites, and they are far superior to Bitcoin ATMs. Not only can are their fees much lower, but since they utilize the latest HTML5 technology, you can access and trade from any mobile and desktop device.
Moreover, reputable platforms such as the Bitcoin Profit App are very safe because they are powered by the latest security systems on the market and are optimized for mobile use. Finally, it implements an advanced AI system that tracks the latest market developments and can predict Bitcoin’s future price, which means that if you plan on selling the Bitcoins that you bought, your chances of making a profit are increased. Now, let’s see how mining works and is it free.
How Does Mining Work?
Mining is one of the processes that powers Bitcoin’s network. In layman’s terms, if you participate in Bitcoin mining, you will be required to solve complex puzzles. On average, it takes around 15 minutes for a block to be mined.
A block is a verified Bitcoin transaction that is integrated with Bitcoin’s blockchain. The more blocks you create, the more Bitcoins you will receive as rewards. Studies show that by 2032, 99% of all Bitcoins will be mined. After all, when Bitcoin was created, it was limited to a total of 21 million units.
Is It Free?
While the process of mining Bitcoin is free, there are quite a few expenses connected to it. First of all, to participate in mining, you will need a state-of-the-art mining rig and that costs several thousands of dollars.
These rigs will be operating throughout the day, and while they are capable of processing Bitcoin transactions fast, they do generate a lot of heat, which means that you will have to buy a unit to cool down the room and make sure that they do not have any malfunctions. The unit also costs money to purchase, and if you do end up with some kind of a malfunction, you will have to pay a lot of money to either repair the rig or replace it.
Finally, considering the fact that the rig will be operating throughout the day, which means that the cooling unit will also be turned on, that means that you will have a massive spike in electricity bills each month.
All in all, when you take things into perspective, the costs are more or less similar. Bitcoin mining might be a bit cheaper, but the problem is that it takes a lot of time to learn the process and to actually do it on the blockchain network, whereas buying Bitcoins is far more efficient.