Crypto currency today, prospects and ways of earning money
Recently, on the Internet, you can more and more often see information about a new kind of virtual currency earnings. It is in the production of digital coins (crypto currency), which, unlike the currency, is protected from counterfeits and has a number of other advantages.
To become a miner (this is the name of people who are engaged in the production of crypto currency), you need to have a computer with the necessary power and special software.
«What is the background of crypto currency, how and how much can you earn for an ordinary user of a personal computer? These are the issues we will consider in more detail”
What is a crypto currency?
The first thing you need to know about mining is the definition of a crypto currency. In fact – this is a virtual currency, which is charged in coins. Due to its features, it is completely protected against falsifications, since it represents some encrypted information, without the possibility of copying it.
Drawing parallel to the crypto currency with conventional electronic money, one important detail must be considered. Namely, for the appearance of money in electronic form on the bank account, they must be deposited into the account in a material embodiment: through the banking service or payment terminal.
«In other words, electronic money is one of the forms of presentation of ordinary, paper money”
As for the crypto currency, it is created and issued directly on the Internet, and therefore has nothing to do with the usual currency, and even more so with the state currency system. Such a currency is stored in a decentralized manner, distributed among electronic crypto-users of the network (miners extracting it). On exchanges, you can observe active transactions by various crypto-currencies, which indicates the development of the crypto-currency market and its future prospects.
History of the Development of Crypto-Currency, the Occurrence of Bitcoin
As with ordinary, material money, there are quite a few crypto currency, more than 400. Each of them has its own advantages, actual cost and method of earning. The first and one of the most popular crypts in the market in 2017, of course, is Bitcoin (BitCoin).
The starting point in the formation of Bitcoin can be considered to be 2007, when a group of programmers first developed a unique Bitcoin algorithm, after which it began its active emission and production on the Internet. Initially, interest in this crypto-currency, and in general, such an idea, only technicians and IT specialists showed, which was interesting. As a result, there were few miners, the extraction process was very slow and there was no clear strategy for its development. The initial cost was also small, about 10 cents per unit (coin) of crypto currency.
A real breakthrough in becoming Bitcoin was 2010, when one of the popular exchanges introduced the possibility of exchanging bitcoins for real money.
Let then the exchange rate was insignificant, however it allowed to attract a massive audience to the crypto currency, the farming began to appear for the first time. At the same time, many portals of clandestine trade displayed interest in the Bitcoins, as a completely anonymous means of transactions and remittances. At first, in 2017, Bitcoin’s exchange rate increased substantially, as illustrated in the graph below, and at the beginning of July is about $ 2,500.
It is known that Bitcoin’s capitalization by different estimates, at the beginning of 2017 is about 3.2 billion dollars. Today they are available for exchange in many conventional ATMs, and many retailers accept crypto currency in order to pay for services or goods. In other words, Bitcoin got rid of its initial dependence on clandestine markets and is now used in many financial transactions in the real sector.
LitCoin – as one of the alternatives to BitCoin
Litcoin is another popular crypto currency, the trade of which is possible on the exchange. The capitalization of Litcoin is substantially less than that of Bitcoin – no more than $ 100 million. This is due to the fact that modern crypto currency accounts for a very small share in the market. The main goal of the miners extracting it, subsequently exchange virtual coins for real, or at least electronic money. Earning Litcoins or another currency, you can not simply translate it into rubles or dollars (to whom it is more convenient). To do this, you first need to buy Bitcoins, and only then to display them on your electronic wallet.
In addition to Litcoin, we can cite the example of the Efirium, Dogkoins and other varieties of crypto currency. All of them, in the future, have the opportunity to increase prices, but much depends on the major players of mining and their speculation.
How much can you earn on Bitcoin Mining?
Probably, the main question that faces a person who decided to get acquainted with the new type of earnings is “Is it worth it to do?” In order to answer it, you need to find out how much you can earn on the mining of crypto currency. Even with knowledge of the financial sector and the economy, it will not be easy to calculate the real profit. To do this, you need to account for at least 4 main factors:
The cost of electricity in your area. In this case, electricity is the “fuel” on which the equipment operates. Special ASICs, used for the production of crypto currency in 2017, can consume quite a lot of kilowatt. As a result, you will surely go beyond the tariff limits of the minimum price and pay at the highest rate.
The complexity of Bitcoin mining. As a result of the fact that mining is becoming more massive, the complexity of coin mining is growing. More experienced miners have to share with newcomers, as a result of which mining becomes more difficult. In addition, the computing power of computers and special equipment is also growing. Thus, the popularization of mining contributes to its strengthening in the market, but at the same time “brings inconvenience” to those who have long been engaged in this.
The Bitcoins rate in relation to the real currency. Recently there has been a more or less stable course of the crypto currency. But the speculation of the big players of the market is not ruled out, and this can in several days collapse the rate several times. There are even whole companies that have declared themselves bankrupt because of this.
The cost of equipment for mining. Here without any special comments, everything is clear. Every month or two, more powerful video cards, processors and ASICs appear on the market. In addition to computing performance, they also have a price tag.
Naturally, it does not take into account possible scams, for example, cloud mining or the choice of an unsuitable pool (server). Calculate the real profit from the mining of the crypto currency will help you to calculate the profitability of mining. We recommend using this program from the site minergate.com/calculator/. On it you will find the current rate of most popular crypto currency and will be able to estimate the real profit from their extraction.