How much can you earn by mining Bitcoins?
When you are mining Bitcoins, it is mined in units, known as Blocks. An average reward for the completion of a block is 12.5 Bitcoin. If you calculate the price of around $10,000 per Bitcoin, it means, you have the opportunity to make a revenue of around $125,000 (12.5 x 10,000). In 2009, when Bitcoin was founded, one block of mining Bitcoin, would give you 50 BTC.
In 2012, the same thing almost got halved, that is, around 25 BTC. In 2016 and beyond, it stands at 12.5 BTC. It is predicted that by 2020, the reward size will be halved again, near about 6.25 BTC. You need to keep a track on the Bitcoin Clock and keep an update on the halves that occur in the real time.
Limitations of crypto currency mining
Some of the limitations include:
· The acceptance of crypto currencies like Bitcoin is very low in the mainstream financial market. There are a very few online retail site that accept Bitcoin as the mode of payment. Hence, you have to convert Bitcoin and other virtual currency into the traditional currency.
· One of the biggest issues of Bitcoin mining is the unstable value. The value of crypto currencies fluctuates a lot as compared to the traditional currencies like Euro and Dollars.
· Since there is no centralized authority that monitors the transactions, there is indeed a lack of protection. Bitcoins and other crypto currencies are not insured like bank money. In case, the digital wallet is lost, you end up losing everything.
· Bitcoin is basically a software that consists of codes. Often there are technical difficulties that are not identified. This can have a negative effect on the whole operation.
· Often questions pop up whether you are actually making any profit or not from Bitcoin mining. The electricity cost of mining is quite high. Moreover, you have to invest a minimum amount of money to start making revenue and then profit.
Condition to earn Bitcoins with mining
If you are really eager to earn Bitcoins, there are two conditions that as an investor you have to cater to.
1. You have to make efforts. Without hard work, you gain nothing.
2. Apart from the hard work, you need to have the luck factor as well.
The easy part is the verification of 1 MB worth transactions. Your effort is important here. Your luck factors play when you become the first miner to come up with the right solution to a given numeric problem. This process is called the “proof of work”.
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