How To Strike It Rich Through Cryptocurrency Mining

The internet has given us digital payment methods like PayPal and Venmo that are becoming more and more popular. Even though these methods are paperless and intangible, they are directly tied to traditional banking systems and are viewed as a safe and reliable way to send money electronically.

Alternatively, the internet has also led to the creation of payment methods like Bitcoin. They're not tied to traditional banking systems and have not been embraced by the general population. So what's the deal?

What are Bitcoins?

Bitcoins are cryptocurrency: an encrypted form of digital money that's designed to be anonymous and secure. You can send bitcoin payments to anyone through the internet and there are no transaction fees. There are many different cryptocurrencies, but Bitcoin is the most popular by far.

Bitcoins are often associated with illegal activities and the dark web, but they're a smart choice for law-abiding citizens, too. Historically, Bitcoins have been a great investment. On August 30, 2016, one Bitcoin was worth $576. On August 29, 2017, one Bitcoin was worth $4,431.94. Show us another investment that increases sevenfold in a year. We'll wait.

Unlike traditional banks, there are no barriers to entry with Bitcoin. Even kids can open accounts. In fact, one high school dropout invested $1,000 in Bitcoin three years ago and is now a millionaire.

There are several characteristics that distinguish bitcoins from traditional money. First, Bitcoins aren't affiliated with any particular country like the American Dollar or the British Pound. Second, bitcoins are decentralized and there is no central bank that verifies these transactions. Third, the entire Bitcoin system is propped up by something called Bitcoin mining.

What is Bitcoin Mining?

Before we explain mining, let's examine a hypothetical example. Let's say that User A wants to send User B ten bitcoins. User A initiates the transaction and it is signed by User A's private key. The encrypted record of the transaction becomes public, but it doesn't go through until it has been confirmed by Bitcoin miners.

All transactions must be confirmed by Bitcoin miners so that everyone's ledger is consistent and no one is double-charged. Once each transaction is examined, miners approve them and add them to the database of all the finished transactions known as the blockchain. This mining takes the place of a centralized banking authority, prevents fraud, and keeps everything running smoothly.

The Bitcoin ecosystem incentivizes miners by giving them a small payment for every transaction they mine. In essence, miners are like people who dig through garbage cans and pull out all the recyclable bottles and cans so they can get a payment for each one. In the case of recycling, it's win-win: materials that would have otherwise ended up in landfills get recycled responsibly and people get some money for their effort. In the case of Bitcoins, it's also win-win: a consistent, secure, and encrypted record of all transactions is kept without the need for a central banking system and Bitcoin miners get paid for successful mining.

How Does Bitcoin Mining Work?

Much like mining gold, mining bitcoins is harder than it seems. Miners must solve a challenging cryptologic puzzle in order to find a hash that connects the pending transaction with the blockchain. But don't let this scare you away. If you know what you're doing, you can make a lot of money mining bitcoins and the best place to get started is the Beginner's Guide to Cryptocurrency Mining.

While most cryptocurrency mining systems require constant upgrades and have a steep learning curve and a low success rate, this course contains 13 lessons that will teach you a flawless system that has none of these issues. You'll learn how to operate a bitcoin mining system that has low startup costs and requires no affiliate marketing or graphics card. By the time you're finished, you'll be able to earn up to $1,000 a month through Bitcoin mining.

The Beginner's Guide to Cryptocurrency Mining normally costs $180, but you can get it for just $15 today.

Written by Curiosity Staff August 31, 2017

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