Crypto Mining business is the process that Crypto mining companies undergo when they complete “blocks” of verified transactions which are added to the blockchain. I did not understand what that meant so I did some more research. I realised that the business is very a profitable venture.
Crypto Mining is the process of adding confirmed transactions to the Bitcoin blockchain. There is a reward paid to the miner who discovers a solution to a complex hashing puzzle first, and the probability that a participant will be the one to discover the solution is related to the portion of the total mining power on the network.
To illustrate: When you send Bitcoin to someone, a lot of crypto mining companies are interested in your transaction. Using their computers, they’ll all work hard to be the first company to complete the ‘block’ of your transaction that will be registered on the Bitcoin blockchain. The first company to do solve that puzzle is rewarded with Bitcoin. Mind you, your transaction is not the only transaction they get completed daily. They complete as many transactions as their computers allow. But for them to win in the competition, crypto mining companies invest in high speed computers called ASICs (Application Specific Integrated Circuits).
Originally, Bitcoin could be mined using a laptop or desktop computer. However, Bitcoin miners discovered they could not get more hashing power from graphic cards. Desktop computers were to0 slow to be used to hash Bitcoin. Hashing Bitcoin means creating the 64 digit characters that validate every Bitcoin transaction. Because of this, Graphic cards used by desktops and laptops were surpassed by ASICs (Application Specific Integrated Circuits).
How Much Do Bitcoin Miners Earn?
The rewards for bitcoin mining are halved (slashed into half) every four years. When bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. By 2016, this was halved again to the current level of 12.5 BTC. In 2020, the reward size was halved again to 6.25 BTC. Today, the price of In Bitcoin is about $11,300 per bitcoin, which means a miner would earn $70,625 (6.25 x 11,300) for completing a block. It sounds like a lot of many but there are lots of expenses Bitcoin Miners incur.
Some Bitcoin Mining Terms To Understand
1. Hash rate: A Hash is the mathematical problem the miner’s computer needs to solve. The hash rate refers to the miner’s performance (i.e., how many guesses his computer can make per second). Hash rate can be measured in MH/s (mega hash per second), GH/s (giga hash per second), TH/s (terra hash per second), and even PH/s (peta hash per second).
2. Bitcoin reward per block: Bitcoin reward per block is the number of Bitcoins generated when a miner finds the solution to a problem. This number started at 50 bitcoins back in 2009, and it’s halved every 210,000 blocks (about four years). The current number of bitcoins awarded per block is 6.25. The last block-halving occurred in May 2020, and the next one will be in 2024.
3. Mining difficulty: Mining difficulty is a number that represents how hard it is to mine bitcoins at any given moment considering the amount of mining power currently active in the system.
4. Electricity cost: Electricity cost is how many dollars the Bitcoin mining company is paying per kilowatt? The company needs to find out its electricity rate in order to calculate profitability. This can usually be found on your the company’s monthly electricity bill. The reason this is important is that miners consume electricity, whether for powering up the miner or for cooling it down (these machines can get really hot).
5. Pool fees: If a company is mining through a mining pool (it should), then the pool will take a certain percentage of it’s earnings for rendering their service. Generally, this would be somewhere around 2%.
7. Bitcoin’s price: Since no one knows what Bitcoin’s price will be in the future, it’s hard to predict whether Bitcoin mining will be profitable. If a mining company is planning to convert its mined bitcoins to any other currency in the future, this variable will have a significant impact on profitability.
8. Difficulty increase per year: This is probably the most important and elusive variable of them all. The idea is that since no one can actually predict the rate of miners joining the network, neither can anyone predict how difficult it will be to mine in six weeks, six months, or six years from now. In fact, in all the time Bitcoin has existed, its profitability has dropped only a handful of times—even at times when the price was relatively low.
Once you have all of these variables at hand you can insert them into a Bitcoin mining calculator (as can be seen below) and get an estimate of how many Bitcoins you will earn each month.
How Can You Make N150,000 From Bitcoin Mining Business?
The answer is very simple: invest in a crypto mining company that has the reputation and efficiency to mine bitcoin and pay you a percentage of your investment.
Reliable Crypto Mining Platforms That Will Generate N150,000 For You
- Harshshiny is a reputable crypto mining company domiciled in the US. The company has state of art mining facilities that enable the company to operating in 6 countries. If you invest in Harshshiny: you earn 3.5% of your investment daily. Withdrawal is instant. You can withdraw as soon as you have earned 0.0005. The least amount to start with is $10. You can increase you investment anytime.
- Crypto Tab Browser. CryptoTab is the world’s first browser with mining features. Earn bitcoin without looking up from watching videos, chatting, or gaming online. Join the community of more than 10 million users all over the world already enjoying CryptoTab Browser.
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