Bitcoins for common folks :Digital Money Series

Many people come around and ask us about bitcoin mining and buying the appropriate hardware for it. There are a few things you need to remember before you venture into bitcoin mining.
Bitcoin mining is difficult to do profitably today more than ever before but with the right bitcoin miner ,it can be done.

Bitcoin mining as the name suggests is mining for bitcoins much similar to how the term gold mining is used . In mining bitcoins ,you are basically running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. The speed at which you mine Bitcoins is measured in hashes per second.( Apologies to the common folk reading this for the excessive technical jargon in a single sentence )

With specialised BITCOIN mining hardware available in the market or purchasing BITCOIN cloud mining contracts or joining a bitcoin mining pool,the days of profitable bitcoin mining for the common man is over. But.. before you lose hope. There’s one option available which is accessible and more profitable. That option is trading in bitcoins.

The easiest way to acquire bitcoins is to buy them at an online exchange. There are quite a few major bitcoin exchanges out there, each of them with their own unique properties and a different fee structure. Coinbase, BTC-E.com, Zebpay,Bitstamp and a few others. Depending on which country you hail from you choose the most suitable BITCOIN trading Exchange. Remember that before trading in Bitcoins ,you will need a BITCOIN wallet which will be unique to every individual. Most of these trading exchanges will automatically create a wallet for you.

 

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Next question,you may ask : why trade in Bitcoins !!? The answer to that is quite  simple atleast for those with a basic financial acumen. Because bitcoins are the currency of the future set to eclipse paper or fiat money. The security these coins offer and the limited number of digital coins out there make them a more attractive investment than the dollar,pound or even the Euro,which are printed without any limits. It is this no limit on paper currency that is causing inflation and other negative trends in the economy. That would require another write-up in itself.

For now the reader can assume that as long as paper money is in print ,bitcoins and a few other digital currencies will always be better investments .

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One thought on “Bitcoins for common folks :Digital Money Series

  1. Thank you very much for your post.
    Just being a biginner I would like to ask how reliable these Internet based profitability calculations giving in the input variables such as enegy unit rate, hash values etc.?

    Like

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