Overheen the past few months I have observed bitcoin’s value rise exponentially. I had no idea what bitcoin wasgoed and never even heard of crypto currency a few months ago. But with the latest government and media attention crypto conventions have received, they have gotten everyone’s attention.
Crypto currency or more simply digital money is gaining acceptance quickly all overheen the world spil it makes transactions quicker and cheaper. Thesis transactions are secured by cryptography and each transaction has its own signature or private key. With its rise ter value and popularity Everyone wants a lump of the activity. There are two main ways to make money with bitcoin. The very first is a pretty straightforward method of purchasing the coin spil an investment and hope that its value increases. The 2nd is the process of ",mining", bitcoins. Once a transaction has occurred they are then verified overheen the network by ",miners", using complicated algorithms. Spil a prize for their work they receive transaction fees and / or freshly minted bitcoins!
From an investing standpoint there is a big risk / prize factor spil this currency is relatively fresh and has no intrinsic value causing volatility and big price switches. A positive fact is that there is a big amount of money invested te this and companies are signing on to use this currency so wij have no idea when its value will go back to zero!
",Mining", also has a big risk / prize factor. Ter the beginning of bitcoin, you used to be able to ",mine", with an ordinary laptop or huis rekentuig. But now spil more people are doing it the difficulty and power needed to ",mine", increases. Bitcoins have a maximum amount that can be minted (21 million). And spil wij get closer and closer to 21 million the amount of bitcoin rewarded for each successful ",mine", gets smaller and smaller. Now ",miners", looking to be profitable have to invest te complicated high tech mining equipments and there is still no assure they will be profitable or even make their costs back.
There is a third and safer option, tho’. Te any unexpected happening that promises riches the most lucrative venture is selling the contraption that helps produce thesis riches. For example, te a gold rush it would be the shovel and ter ",mining", for bitcoin it would be mining equipments or powerful graphic cards. If you can produce thesis or even get your mitts on some cheap you would make a reasonable profit spinning them. Unluckily, only a select few have the luxury of choosing this option.
With people flocking towards the riches dangling ter vuurlijn of them the scam artists are having a field day spil well. Read articles, browse the forums, witness the bitcoin market, and research your costs and ROI before even considering investing anything. Ter my opinion, you should do this for a few weeks before putting any money into play. This is an enormously volatile market and an even riskier investment.
But ter the end, I think it all boils down to if you are willing to take the risk of losing it all, to possibly make it big.