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Bitcoin mining: 3 Benefits

Bitcoin Mining scrabble letters on dark surface with laptop and pen

Simply put, bitcoin mining is the process through which new bitcoins are generated and entered into circulation, and transactions are validated digitally and added to the blockchain ledger. It is done by miners who have to solve complex hash puzzles using high-performance computing systems. The miner who first finds the solution receives the next block of bitcoins.

Let’s see what are some of the benefits of bitcoin mining:

1. Potential of high return

The bitcoin network generates a block every ten minutes, and the miner who adds a block to the blockchain will receive 6.25 bitcoins as a reward, which is the equivalent of approximately $250,000 as of 2022. However, some factors determine how profitable bitcoin mining can be, and these are hardware (GPUs), field-programmable gates (FPGAs), an application-specific integrated circus (ASICs), Bitcoin’s price, or joining a mining pool. Bitcoin is expected to gain value in the future and reach as much as $470,000 by 2030.

2. Transparency and no risk of counterfeit

Due to blockchain technology, a distributed ledger enforced by a disparate network of computers, your transaction will never get counterfeit when mining bitcoin. This means that all digital information is recorded and distributed, but not edited, making the ledgers unchangeable, and the records of transactions impossible to alter or delete. The fact that bitcoin users are anonymous and only identified by numerical codes ensures no tracking of transactions back to the user, despite the transparency as they are viewable at all times.

3. Independence from Central Authority

Bitcoin is a decentralised currency which means that it is not regulated by a central bank or a government and users have complete autonomy and control over their money. Also, it’s not foreseeable that taxation would be implemented for Bitcoin.

Conclusion

Bitcoin mining is an indispensable process in generating new coins, and it can be a profitable activity. The best bitcoin mining companies have grasped the benefits of “mining”, and it is worth looking into their future thinking approach.

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