Earning an income from trading Bitcoin is hard considering all the risks involved. Mining is probably the easiest way to earn Bitcoin if you have access to a powerful computer and cheap electricity. You can make money from Bitcoin mining in 2 ways:Mine Bitcoin Use Mining activity to predict Bitcoin price
In this article, you will learn what is Bitcoin mining, and how you can make a profit with it and how you can forecast market moves by looking at mining activity.What is Bitcoin mining?
A record of all bitcoin transactions are recorded on something called the “Blockchain”. The Blockchain is a shared public ledger on which all Bitcoin transactions are recorded.
Computers that verify and record transactions on the Blockchain are called miners. And they get paid for verifying the transactions. Since each Bitcoin transaction is encrypted and verified it is virtually impossible to counterfeit Bitcoin transactions.
Miners use special software to solve a complex cryptographical math problem which results in a verified transaction. Once enough transactions are verified, they are saved in a “block” which put together create the “Blockchain”. Currently, a new block is created approximately every 10 minutes.How much do Bitcoin miners make?
When Bitcoin was first introduced, the computer or miner that was able to verify the block first would receive 50 BTC. The current reward is 12.5 BTC. The reward halves approximately every 4 years and the next Bitcoin Halvening happens in May 2020. After that, the reward will only be 6.25 BTC.
This provides a smart way to issue the currency and also creates an incentive for people to mine Bitcoin as well creates a hard limit on the supply of Bitcoin of 21 million BTC. The last block will be mined in 2140.
Because of the increase in demand for Bitcoin, the mining difficulty has gone up significantly. Instead of running computers for months on end hoping to get 25 BTC, people like...