In the past few years, there has been a dramatic increase seen in the value of cryptocurrencies as new currencies and platforms tend to appear along with time. Regardless of new cryptocurrencies and changing trends, it has been noticed that bitcoin remains the most popular and valuable decentralized digital currency. As the value of cryptocurrencies like bitcoin increases, newcomers and investors still think does the process of obtaining bitcoin is profitable or not?
The answer to this question is yes. Bitcoin mining is highly profitable as of 2021, but in reality, there are numerous barriers to access it. Mining bitcoin requires complete technical knowledge that discourages the new buyers that don’t have any technical knowledge. Still, the mining process continues to grow in efficiency and scale, which makes it a great way to earn money from bitcoins which leverages the already paid existing cryptocurrencies to provide good returns. Other than mining, bitcoin trading is a great method to earn money and you can become an effective trade from Bitcoin Madrid
This article is especially for beginners that will provide you with knowledge about cryptocurrencies, bitcoin and blockchain technology. Let us gain some knowledge on how to make money with bitcoin and how to build a PC mining rig.
History of Bitcoin
Bitcoin was released in 2008 by the creator named Satoshi Nakamoto, whose real identity is unknown. It is the first cryptocurrency that is highly efficient and in scale as well. In the past decade, bitcoin rose to prominence through its blockchain technology that is an open-source alternative to the fiat or institutional currencies that governments and banks back. Since 2009, bitcoin has maintained its image as a dominant digital currency, unlike other cryptocurrencies that are entering into the crypto space.
As the Bitcoin market is volatile, its market dropped in 2018 and 2019 after an increase in 2017, but the crypto industry experienced major increases in 2020 and 2021. A bull market was seen in 2020, which led bitcoin to become the first global cryptocurrency and the market capitalisation of bitcoin crossed $1 trillion. Bitcoin’s value raised in mid-March 2021, and a single unit of bitcoin reached $56,804. But do you know the factors that drive the growth of bitcoin? If no, you can learn about those factors in the forthcoming paragraphs.
Factors that drive the growth of Bitcoin
Bitcoin and all other cryptocurrencies are based on strong and effective blockchain technology. Investors and miners that found the right opportunity and invested and HODL their assets have today become millionaires. Let’s discuss few factors that highly influence the growth of bitcoin and are the reasons behind its outstanding growth.
Public acceptance and awareness
Bitcoin became the first cryptocurrency introduced in the financial market, and it sure hit the market. During the early stages of bitcoin, it was embraced because people find out negative factors more instead of looking at its benefits. No one believed that a currency independent of government could even exist. But as the years pass, there was a rise in public awareness that was depicted that led to the growth of bitcoin. This awareness leads to the acceptance of bitcoin from both investors and miners.
It is believed that trend of bitcoin will continue to increase, and one day even banks will start allowing their users to invest and trade bitcoin.
The processing power of nodes and profitability it offers
Bitcoin mining consumes energy, and the overall impact of energy on industries is huge, and even that is equivalent to the annual carbon footprint of some countries. It has become the talk of the town where people are worried about the increase in consumption of energy by high processing nodes required to mine bitcoins. The high amount of energy also increases the costs, which results in costly mining. It is better to mine bitcoins at a place or area where the electricity charges aren’t high as only that would be profitable for miners.
Bitcoin and few other cryptocurrencies have a finite supply. In the case of bitcoin, the supply of it is limited to 21 million bitcoins. Over time, people are becoming more interested in bitcoin and accumulating it and other cryptocurrencies, which results in more hunting of cryptocurrencies by miners. Most cryptocurrencies follow a halving process to reduce inflation and facilitate more growth of the crypto market.