Can Bitcoin Mining Be a Source of Livelihood in 2021?
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Can Bitcoin Mining Be a Source of Livelihood in 2021?

COVID-19 has changed the lives of many people. Some people have lost employment, while some employers reduced their workers' wages in both large and small companies. As such, some people have started to explore different ways to make a living.

At the same time, Bitcoin was at the peak of its fame. Perhaps, that's because some people were looking for ways to store value. Some individuals and companies were looking for gold alternatives, and cryptocurrencies seemed worthy of their consideration. So far, many people have stored value in Bitcoin because they believe it's immune to interferences by governments and banks.

What is Bitcoin? 

Bitcoin is the pioneer cryptocurrency. It's a digital or virtual currency, introduced in 2009. Although it's a virtual currency, people express its value using monetary or fiat money. Bitcoin's value is a variable. However, Bitcoin is currently the leading cryptocurrency.

Currently, this cryptocurrency dominates most crypto exchanges. The number of people using to buy and sell Bitcoin is increasing every day. These platforms have increased people's awareness of Bitcoin. Some of them allow individuals to trade or invest in Bitcoin even without much knowledge about it.

Bitcoin's value is currently about $30. Investing in Bitcoin entails monitoring market trends, having a wallet, and deciding when to buy or sell Bitcoin. But there is another way to get Bitcoin. That is mining.

What is Bitcoin Mining? 

Bitcoin mining refers to the process of generating or creating new Bitcoin. It entails solving complex computational puzzles. This process is necessary because it helps with maintaining a transactions' ledger, which is the basis of this cryptocurrency.

To mine Bitcoin, you need the following: 

  • Mining rig: You should invest in a mining rig for use at your office or home. The internet has many rigs on offer. Search the internet to find one that won't cost you a lot of money.
  • Bitcoin wallet: Get a secure wallet for storing your Bitcoins. Consider the security measures that a digital wallet has in place, and then get one that suits your needs.
  • Mining site: Look for a reputable Bitcoin mining site where you can use your skills to earn Bitcoins.
  • Practice: Practice mining Bitcoins more often to increase your earnings.

Some people take around 10 minutes to earn a coin. However, earning good rewards through Bitcoin mining requires practice. You have to familiarize yourself with the Bitcoin minding process to make a living. But, people that invest their time and resources in Bitcoin can earn good money.

Is Bitcoin Mining a Possible Source of Livelihood in 2021?

Well, the answer to this question depends on how you intend to mine Bitcoin. Initially, Bitcoin was a relatively simple process. Some people even used their home computers to mine Bitcoin. However, this has changed as Bitcoin becomes popular and its demand increases. Today, you need specialized Bitcoin mining software to engage in this activity. Bitcoin mining also requires high computing and processing power.

Essentially, Bitcoin mining has become a costly investment. And after investing your money in Bitcoin mining, the returns might not cater to capital. That's why some people opt for cloud mining, where you pay a subscription fee rather than invest in Bitcoin mining equipment.

Final Thoughts 

Bitcoin mining requires special skills to solve computational puzzles. You also have to invest in special computers, electricity, and software to mine Bitcoin. Your returns from this investment will depend on the number of Bitcoins you can make after this investment. As such, whether Bitcoin mining can be a source of livelihood or not depends on what you can invest in and your ability to mine more Bitcoins. But if Bitcoin mining is not an option and you want to earn from cryptocurrency, consider trading it.

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