Almost everyone today would have heard of Bitcoin. It is the digital currency that is storming the world. What many people are not aware of, however, is where they come from. In fact, most people probably would not even question this at all.
In order to meet the rising demand for Bitcoin, more and more need to be created all the time, but how? That is where Bitcoin mining comes in.
There are huge number of "miners" all over the world who have made it their job to create new Bitcoin. This is achieved by solving complex maths problems by their computers, using some very advanced hardware and software tools.
Mining is one of the main ways of earning cryptocurrency, save for Bitcoin trading, which is also gaining in popularity these days. However, the process of mining is not as simple as it sounds, otherwise everyone would be trying their hand at it.
There are two main methods of mining bitcoins.
Individual Mining
This is where you mine using your own hardware and software on a small scale. The problem with this is the rewards simply do not pay off, as the hardware needed is very expensive and you will need to use a lot of electricity in order to mine a block.
Cloud Mining
Cloud mining and being a member of mining pools is like teaming up with a group of other people to share the workload and then also share the rewards. There are positives and negatives to this method, but at the moment it is pretty popular as it is often the only one that people can afford.
So, the question stands, with so many negative aspects of mining, is it even worth it at all?
Well, rewind the clock around seven years, and the answer would definitely be yes. Back then, when the demand for Bitcoin was not so great, the process of mining Bitcoin was a lot easier and cheaper, as it could be achieved through just a normal computer.
Right now however, there is not a great deal of point trying to mine Bitcoin for profit, and sometimes trading it is the way to achieve greater benefits.
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