How make money with bitcoin? What is bitcoin? In a very superficial way, the bitcoin is a cryptocurrency, can not be printed but exists only in virtual form, in this article we do not want to dwell on the bitcoin in detail, but how to earn it from scratch; however, if you want more explanations about bitcoin and the crypto world, we recommend reading this article.
How is bitcoin produced?
Being a totally virtual currency, the bitcoin is produced with equipment, these equipment, are able to process a considerable computing power, in jargon are called “miner” , their job (basically) would be to “minare” or “extract” this cryptomoneta … without them, the bitcoin cannot be produced … are essential.
Who produces bitcoin?
In the past, bitcoin could be “mined” by any person anywhere in the world; many people had organized themselves at their homes with minerals. However, the “party” for all aspiring miners ended immediately, the bitcoin became increasingly difficult to undermine and its production was estimated even the term of production that is around 2140. Therefore, this factor meant that bitcoin did not suffer much from inflation and its value increased considerably over the years (as we wanted to show).
How and where to deposit your bitcoins ?
To deposit your bitcoins you don’t need banks, since the currency is completely virtual, but you need a virtual or physical portfolio. If you want to open a portfolio for free to keep your bitcoins you can do it. If you want to keep your bitcoins on a hardware support you can buy it.
Producing bitcoin at home is no longer valid.
Unfortunately, mining bitcoin at home is no longer valid and buy miner and attach them to our pc or who knows where, it is no longer a recommended investment for several reasons. The more we go on in time, the more bitcoin needs more computing power and therefore the miner, must add computing power every day that passes, otherwise it will not be able to produce bitcoin on a regular basis, not to mention the cost of electricity that far surpasses that of the bitcoin produced.
Is it possible to gain bitcoin anyway?
The answer is yes. Today it is possible to earn bitcoins also in a continuous way on the web; there are different methods that guarantee a bitcoin gain and I, in this article, feel like sharing all the methods from the cheapest up, so that I can offer all people an opportunity to earn bitcoins.
How make money with bitcoin
Mining Isn’t the only way to earn Bitcoin. On the Net there are many other tools that allow you to receive virtual currency. Here are some of them. Recently Bitcoins, or cryptocurrency, have reached their historical maximum value. This has awakened the interest of media and users in this regard. There are many people interested in earning through virtual currency. So here are ways to take advantage of Bitcoin and make money. If we want to start earning with Bitcoins there is a fundamental step to take, which is to open a virtual wallet for Bitcoins. In this way we can start to receive and spend the virtual currency. You can get a virtual wallet on different online services. Attention many are not reliable and only try to cheat users. Among the most famous and accredited instead we find Coinbase or Blockchain.info.
Once you have a portfolio, you can establish multiple bitcoin addresses, which allow you to receive them from others. They are virtual addresses and not real. Bitcoins can also be generated as well as purchased. The operation is called mining. The process involves the use of sophisticated machines that are expensive and consume a lot of electricity to solve mathematical algorithms in exchange for Bitcoin. It is not a solution for non-expert users. In recent years, due to the difficulty of the process is no longer considered an advantageous system. Or rather, not if done at home. It would be better to be part of a group that deals with “extracting” virtual currency.
Doing cloud mining
Bitcoin extraction can also be done in the cloud. That is, using a remote data center that has a common processing power. This system is recently considered more advantageous because it does not force users to use powerful hardware solutions to derive Bitcoin. It must be said, however, that the absence of electricity consumption and of sophisticated machinery and algorithms has a cost. In fact, the cloud mining service is only available for a fee, often with monthly or annual subscriptions.
Bitcoin for ads
Some Internet sites pay users in Bitcoin if they watch advertisements. Obviously we will have to register at the site to start earning virtual coins in this way. Beware, however, it is a very, very slow method to get Bitcoin.
There are then some sites that in exchange for small actions to do on the Net offer us the virtual currency. Usually they are surveys, display of ads, testing of applications in beta phase.
As it happens in the market and with the “classic” money in the Net one can make trading also with the Bitcoin. It is quite clear the concept, you buy many Bitcoins when they are worth less and then expects that the crypto currency rises in value to resell it.
Gambling also exists in the world of Bitcoins. Therefore there is an online possibility to bet to win virtual coins. Usually you play roulette, poker, dice and slot machines.
To earn money we can also use Bitcoins to lend to entrepreneurs and SMEs. This is currently one of the most used and profitable methods. Start-ups and SMEs can borrow virtual currency without the use of a traditional financial intermediary, avoiding the problems associated with “classic” loans.
Sale of goods in exchange for Bitcoin
On the Net there are people who sell clothes, old gadgets, cars and even houses in exchange for Bitcoin. What seems to be an extravagant method is actually one of the most used systems in recent years. It allows those who don’t have much time to earn Bitcoin in other ways to start with a good amount on their virtual wallet.
History of bitcoins
Bitcoin is a digital artifact that can be transferred but not duplicated, that is, it can be “spent” only once (in favour of Tizio) but not twice (in favour of Caio). For the first time in the digital field this feature is intrinsic to the computer protocol that defines bitcoin and is not guaranteed by an authority or issuer, as happens with a share or the balance of a current account. Moreover, bitcoin is a scarce good, limited to 21 million: it is the emergence of scarcity in the digital environment, the digital equivalent of gold. An increasing number of people are realizing its stainless shimmer and potential as an investment asset: the gold rush, however, opens up paths in wild territories.
It is an ecosystem where, alongside serious explorers and guides, there is a swarm of scoundrels and cheaters; but for those who know how to get to the bottom, without being defrauded and with a clear horizon, there is really gold. There are those who do not agree with the vision of digital gold and would like to bitcoin as a means of payment. To achieve higher transactional capabilities, second level solutions are tested, for example Lightning Network, where the transaction is validated only by the counterparties involved, not by the entire network: the bitcoin network is used as the ultimate guarantor, only if one of the interested parties does not cooperate. These solutions can allow millions, perhaps even billions, of transactions per second: it is a decisive step forward for the versatility and scalability of bitcoin, making digital gold even more “liquid”; not for this reason bitcoin will really become a widespread means of payment. Its nature is rather that of a refuge good par excellence.
The scarcity of physical gold is guaranteed by mother nature, digital gold is purely conventional and requires the consent of the actors involved. But this is not a fragile or unrealistic convention: rather, we are dealing with an architecture that orients the economic incentives of all the actors involved in favour of immutability, incensurability and the preservation of scarcity. Is not from the benevolence of the butcher, brewer or baker that we expect dinner, but from the care they have for their interest. In this case, dinner is the sustainability of the bitcoin experiment. Nobel Prize winners criticize severely and have spoken of “bubble”:
the first memory of the phrase “the impact of the Internet on the economy will not be greater than that had by the fax”; the second estimated the probability of failure of the U.S. agencies , so small as not to be measurable: those failures triggered the financial crisis of 2007.Many compared bitcoin to the tulip bubble, which centuries ago was traded in the Netherlands at exorbitant prices for a period, after which the value collapsed to zero. But the tulip bubble lasted six months (at most three years, but some even say it never really happened as we say today) in the Netherlands in 1637. It is intellectually disheartening to compare it with a phenomenon, like bitcoin, that has lasted for ten years in the global economy: the information available today is infinitely superior, it circulates more easily, the market is much more open and extended. Bitcoin is not ephemeral, it is proving resilient.
On bitcoin there is a formidable size
Anyone who breaks its operation can reap a gigantic economic benefit or at least an extraordinary reputation. And no one has succeeded… If bitcoin is digital gold – there may still be legitimate doubts in this regard – then it is widely underestimated: if 2% of the managed assets entered bitcoin, even just for the purpose of diversification (bitcoin has no correlation with other asset classes), the price of bitcoin would rise to $ 100,000. If it reached the capitalization of physical gold (being safer, lighter, instantly transferable, etc..) the price would rise to 400 thousand dollars. If instead critical elements were to emerge, which today escape analysis, then its value is destined to zero. The success of bitcoin has triggered a plethora of emulation attempts.
Almost all of these clones do not bring innovation, lack of technical substance and functional merits. Many of these have grown simply because they have a low price and have been perceived as having greater potential than bitcoins, a bit like Penny stocks. Thinking they have missed the bitcoin train, many are looking for new opportunities: they get on goods trains of uncertain destination, they have not understood that the high-speed bitcoin train has just started. The emergence of alternatives to bitcoins is healthy competition, but here the risk of bubbles is concentrated: these altcoins, alternative currencies, experiment with new techniques and you learn from their attempts and their failures, but so far only a few have shown distinctive features that have made them, with different and controversial levels of quality, deserving of some limited consideration.
Ethereum has the ambition to be a global computer rather than digital gold; Litecoin is so similar to bitcoin that it has almost assumed the role of a testing platform where to preview the new features that could then be adopted for bitcoin; Monero and ZCash provide true transactional anonymity; Ripple embodies the declination of these technologies in a key more akin to the world of traditional and regulated finance. Then there are the Initial coin offering (Ico): the equivalent in the world of cryptocurrency (also called cryptocurrency) of public offers to buy shares. Potentially they represent the disintermediation of Venture Capital: startups collect capital in crypto currency from investors and reward them with the issuance of tokens, digital tokens that are quoted and whose main appeal is to make them dream of appreciations similar to the extraordinary revaluation of bitcoins.
To discriminate between fraud and legitimate propositions, technical elements and common sense are needed, but they are rare in a world where media noise is very high and experts in the field sometimes prefer silent silence or even collusion. Many people think that the aim of bitcoin is to “blow up central banks”: useless because their coins die alone, have an average life of 27 years, lose more than 90% of their purchasing power in 20 years. It’s better to make a tight competition that triggers the market competition that will do well even to traditional currencies. Of course, after thousands of years in which it is advocated a monopoly on currency, it seems incomprehensible to us, even revolutionary, to note that such a monopoly is no longer technically necessary.
But it is not necessary for this to marry the anarchist culture: the Leviathan needs to cut his nails, but if we kill him we risk finding ourselves with worse monsters, those historically defeated by the Rule of Law. Much better is the libertarian culture of the Austrian school, that of the Nobel prize winner for economics : against the government monopoly of currency, for the market competition between legal tender and private coins. The free market and competition will allow the emergence of good currencies and good monetary practices, the monopoly instead inevitably gives us a poor product.