Why Should I Mine?
Before we can persuade you to start mining, you first need to understand what mining is.
What is Mining?
In short, mining is basically lending your computer’s processing power to validate Bitcoin transactions. Oh, and you are compensated with Bitcoin.
In more detail, mining is your computer solving some hash algorithm calculations that secure the network of cryptocurrencies. Miners (like yourself!) are rewarded for their hash-rate which is their total effort level on the network. The higher your hash rate, the higher your payout! That’s where we come in.
Miners verify transactions to the global ledger of that cryptocurrency. So more mining of a cryptocurrency makes it more valuable, this is because of the investment and security that it provides.
Why should I mine?
Well I’m glad you asked! If you are a believer in this technology and see the potential in blockchain, you should definitely think about mining. The important thing to understand is that by mining a cryptocurrency, you are investing in it with the hopes that it will eventually go up in price. This brings me to my next point.
Which cryptocurrency should I mine?
To answer this question, you’ll have to pay close attention to your options. Like we mentioned in our last post, each new cryptocurrency has it’s own speciality and appeal. If you are interested in privacy you might try Zcash. If you’re familiar with Etherium, you might get involved in that. But keep in mind, you also have the option of converting your mined coins to Bitcoin. In many cases, this might even be recommended.
How do you know this will work?
If you look at this past year, you’ll see that you would have made a killing if you were mining any coin in 2016. In the beginning of 2017, total market cap of all altcoins were about $2 billion. Today that number is $75 billion, that means that market grew 38 fold over the course of 10 months which is phenomenal.
The growth potential of cryptocurrencies is still there, as it’s still a new thing to investors. The only reason you’re hearing about it now is because this is the first big leg up. The potential here is huge and can feasibly go to $1 trillion. Don’t get left behind.
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