Bitcoin Mining Explained | How Bitcoin Mining Earned You Money | OnlineMoneyEarning

What Is Bitcoin Mining ?

Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards. The rewards are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin.

The amount of new bitcoin released with each mined block is called the block reward. The block reward is halved every 210,000 blocks, or around every 4 years. The block reward started at 50 in 2009, is now 12.5 in 2018, and will continue to decrease. This diminishing block reward will result in a total release of bitcoin that approaches 21 million. 

Why Mine Your Own Bitcoin ?

By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto. You can also buy cryptocurrencies using fiat currency like USD, EUR, JPY, etc. Also you can trade it on an exchange like BestChange using other cryptocurrencies like Ethereum, Ripple, or DOGE to buy Bitcoin. You even can earn it by playing video games or by publishing blogposts on platforms that pay its users in cryptocurrencies. For example is Steemit, which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called Steem. Steem can then be traded in exchangers for Bitcoin. 

In addition to lining the pockets of miners, mining serves a second and vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "mining" currency. Aside from the coins mined via the genesis block (the very first block created by Satoshi Nakamoto himself as the founder of Bitcoin), every single one of those Bitcoin came into existence because of miners. without the miners, Bitcoin would still exist and be usable, but there would never be any additional Bitcoin.

As of now, there are also companies that open cloud mining services. which people can hire miners to mine bitcoin for them in costs of additional fees, electricity cost, and maintenance cost. This is a good alternative to earn bitcoin online for those who doesn't have a mining equipment.

How Much Can A Miner Earn From Mining Bitcoin ?

Bitcoin are mined in units called "blocks." Right now, the reward for completing a block is 12.5 Bitcoin. At today's price of about $13.000/Bitcoin, this means a miner can earn (12.5 x $13.000) = $162.500.

When Bitcoin was first mined in 2009, mining one block would earn you 50 BTC. In 2012, this was halved to 25 BTC. in 2016, this was halved to the current level of 12.5 BTC. In 2020 or so, the reward size will be halved again to 6.25 BTC. 

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How To Earn Bitcoin Online - OnlineMoneyEarning

Bitcoin is a great to way to earn money online. Back in 2011 Bitcoin price is just $1 each. Now in 2018 the price is at all-time high in $14.435 each reach the highest market cap for all currencies, and the price rates is still rising. Some major cities even accept BTC as a transaction. In some countries like the Netherlands, the entire towns are Bitcoin-friendly such as Arnhem, often called ‘the Bitcoin city’ now with a range of services available for those who are willing to pay with BTC. The more ways are there to spend the cryptocurrency, the more ways are there to obtain them. Let us look at some of the opportunities to help you earn Bitcoins.

1. Mine Bitcoin On Your Own

The very first way to get your own Bitcoins was through mining. In 2009, every block mined (every 10 minutes on average) brought a reward of 50 BTC to the lucky one who managed to solve the computational problem. Right now, every block brings 12,5 BTC. There are some issues which stand in the way of earning some BTC :

• The hashing difficulty has grown significantly over the last years. No single equipment has enough computational power to compete for Bitcoins, even when 10 supercomputers combined.
• Mining has gotten unprofitable since every block now only brings 12.5 BTC.
• To get more rewards, people are forced to unite in pools or use cloud mining services.
• Even when the efforts are combined, there is still need to pay for the electricity, and the utility bills often exceed the mining reward.

2. Several Bitcoin Faucets

What you need to know about Bitcoin faucets is that they allow you to get a small amount of cryptocurrency in particular time spans. For example, on many Bitcoin dice websites you can get 0.0001 BTC every 5 minutes. There are other options too where you can earn Bitcoin for time you spent on the website for example, when playing games. You cannot gain much here even when you join many various faucets, but gain less is better than not gaining at all.

3. Working For Bitcoin

If mining is not for you, you can search for work that you can do for Bitcoins. There are multiple services that will offer one an opportunity to work for cryptocurrency. Currently, you can earn Bitcoins online as a freelancer, but some Bitcoin startups and companies like Overstock offer an option to get the regular payment in BTC. With greater acceptance, there will be more options to look for.

4. Trading With Bitcoin

A good way to make an earning with Bitcoin and other cryptocurrencies is  through trading. Sometimes, however, Bitcoin trading can be very similar to gambling – high risks are involved here too. In order to minimize them, you need to learn a bit about trading. You may follow trading souces to get some trading tips. Meanwhile, you can just start with a little amount, and when you feel more confident, you will be able to get to bigger earnings.

There are quite a few ways to earn Bitcoins online, and they are all different. Regardless of what strategy you choose, you still have to find a secure place to buy, sell, and exchange your Bitcoins. BestChange for example, that have been established since 2007, offer the services for buying, selling, and trading Bitcoin to another cryptocurrencies.

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Best Bitcoin Cloud Mining Sites That You Should Start With | OnlineMoneyEarning

In order to make money through Bitcoin cloud mining, you need to look for the best websites to start with. Remember, cloud mining can be a little bit expensive as you would be paying for the cost of electricity and hardware in return to not bother with the mining process.

Sure, there many more good cloud mining sites out there, but the list below here are some that I recommend for you.

Genesis Mining

Online Since : 2013

Company Location : Hong Kong

Pros and Cons :

• (+) Custom Mining plans
• (+) Mining farms are spread across various locations for security reasons
• (-)  Maintenance fee on some contracts
• (-)  Some contracts doesn’t have a lifetime access

Visit Website

Hashflare

Online Since : 2014
Company Location : Tallinn, Estonia
Pros and Cons : 

• (+) Immediate payouts if hashpower is purchased from bitcoin
• (+) Unlimited contract length
• (-)  Maintenance fee on some currencies
• (-)  Commission fee for wire transfers

Visit Website

Hashing 24

Online Since : 2012
Company Location : United Kingdom
Pros and Cons :

• (+) Credit card and wire transfer payments are accepted
• (+) 10% revenue from affiliate program
• (-)  No information on the funders of the company
• (-)  Daily maintenance fee

Visit Website

Miner Gate

Online Since : 2014
Company Location : N/A
Pros and Cons :

• (+) Transparent pricing structure
• (+) 14 different altcoins are available in their mining pool
• (-)  Only Bitcoin cloud mining is available
• (-)  Withdrawals are available from 0.01 coins

Visit Website

Eobot

Online Since : 2013
Company Location : Los Angeles
Pros and Cons :

• (+) Immediate payouts
• (+) Interesting side projects Cloud SETI and medical researches
• (-)  High maintenance fee
• (-)  Basic website UI

Visit Website

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Bitcoin Interesting Facts That You Should Know - OnlineMoneyEarning

Bitcoin, the most expensive and controversy digital currency ever made actually have some weird yet interesting background behind it. You want to know ? Here they are.

1. The Unknown Founder

Since the inception of Bitcoin in 2009, there have been several speculations about who the founder of Bitcoin is/are.

The Bitcoin whitepaper was made open to the public under the pseudonym of Satoshi Nakamoto. The identity of “Satoshi” is still a mystery yet to be solved.

Some even suggest that Samsung, Toshiba, Nakamichi, and Motorola together created Bitcoin.

• Samsung and Toshiba  — Satoshi
• Nakamichi and Motorola  — Nakamoto

This anonymity has led to comments like "Bitcoin is a Ponzi Scheme", yet this buzz has not stopped BTC from growing.

Because the purpose of Bitcoin is to be a decentralized method of exchanging money, this anonymity is very healthy for the platform.

2. Bitcoin Is Not Traceable

When making Bitcoin transactions, your name/identity is not used in any form. Only your public address is available.

But,

The Bitcoin blockchain is a permanent ledger which is transparent. If anyone knows your Bitcoin public address, they can see how many bitcoins you hold and what transactions you have made.

It’s how the FBI was able to bust the owner of Silk Road.

3. The First Bitcoin Purchase Was A Pizza

Initially, when bitcoins were mined they were virtually worthless as it cost literally cents to buy a BTC.

But it was until 22 May 2010, when someone purchased something with bitcoins.

Seven years ago on this day, someone bought Piazzas with bitcoins and this purchase was a big deal because no retailer was accepting bitcoins at that time for goods and services.

On 22 May 2010, two Papa John’s Pizzas were exchanged by Laszlo Hanyecz for 10,000 BTC. This was the first official documented purchase of goods using bitcoins.

At that time, the worth of 10,000 BTC was $41.

4. There Only Will ever Be 21 Million Bitcoin

Bitcoin’s supply is limited.

There will only ever be 21 million bitcoins.

At present, 16.3 million have already been mined and are being traded. The last bitcoin will be mined in 2140. After that, no new bitcoins can be mined.

5. Bitcoin Can Not Be Banned

Due to the nature of Bitcoin, there is constant talk about “banning” it. This hostility towards Bitcoin is because it works outside the jurisdiction of the traditional banking system.

However, the fundamental design is such that it can’t be banned, only regulated. As long as you have an internet connection and a Bitcoin wallet, you can engage in Bitcoin.

Nevertheless, many countries have tried to ban it, like Bangladesh, Bolivia, Thailand, and Vietnam (among many others). But there are some countries like Australia, Russia, Japan, and Venezuela which have made Bitcoin an official legal tender and are regulating it.

However, some countries like India and even the USA are unclear of their official policy regarding cryptocurrencies.

Try as they might, Bitcoin can’t be pushed away just because it threatens the financial power structure. This is the real beauty of Bitcoin.

6. Bitcoin Does Not Grow On Trees

Just like money, bitcoins also don’t grow on trees.

But unlike traditional paper money, you can’t touch, feel, or print bitcoin.

Bitcoins are mined on the blockchain network, and they come into existence when miners successfully mine Bitcoin blocks.

At present, the mining power of Bitcoin’s network is 300 times more powerful than the world’s top 5 supercomputers combined.

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What Is Bitcoin ? | The More You Know About Cryptocurrency | OnlineMoneyEarning

As you know, Bitcoin have been very populer especially this year. It's popularity made it reach the market cap for over $10.000 a piece. But, in all it's popularity and weird facts about it,  there are some people begin to start business in Bitcoin like Mining and Faucets while doesn't even know what Bitcoin is or how it's even made. So let's get started.

What Is Bitcoin ?

Bitcoin is a type of Cryptocurrency or digital currency. It is the first cryptcoin ever made. Also it is the first bitcoin that designed for maximun anonymities, uncrackable, and decantralized.

How Bitcoin Made ?

Bitcoin is often compared with gold, and one of the chief factors of similarity it the way they’re both obtained. Similarly to gold, new Bitcoins are created via the process called “mining” by using computers to solve a very complex algorithm.

Mining can be quite a competitive task as new Bitcoins are created at a predictable and fixed rate. Those rates have been defined by Satoshi Nakamoto, the creator of Bitcoin, in the white paper published in 2008.

The more miners join the network, the more difficult it becomes to make a profit for each of them. Because of that, miners have to remain highly competitive to keep receiving Bitcoins as a reward for validating the transactions.

So Why The Big Deal ?

1. Bitcoin Are Not Created By Any Central Bank

Accordingly, there are no banks logging your money movement, and government tax agencies and police cannot track your money. This is bound to change eventually, as unregulated money is a real threat to government control, taxation, and policing.

2. Completely Bypass The Bank

Bitcoins are transferred via a peer-to-peer network between individuals, with no middleman bank to take a slice. 

Bitcoin wallets cannot be seized or frozen or audited by banks and law enforcement. Bitcoin wallets cannot have spending and withdrawal limits imposed on them. For all intents: nobody but the owner of the bitcoin wallet decides how their wealth will be managed.

This is really threatening to banks, as you might guess.

3. It's Changing How People Store And Spend Their Wealth

Since the advent of printed (and eventually virtual) money, the world has handed over the power of currency to a central mint and various banks. These banks print our virtual money, store our virtual money, move our virtual money, and charge us for their middleman services.

If banks need more currency, they simply print more or conjure more digits in their electronic ledgers. This system is easily abused and gamed by banks because paper money is essentially paper checks with a promise to have value, with no actual physical gold behind the scenes to back those promises.

Bitcoins are designed to put the control of personal wealth back into the hands of the individual. Instead of paper or virtual bank balances that promise to have value, Bitcoins are actual packages of complex data that have value in themselves.

4. Bitcoin Transaction Is Irreversible

Conventional payment methods, like a credit card charge, bank draft, personal checks, or wire transfer, do have the benefit of being insured and reversible by the banks involved. In the case of bitcoins, every time bitcoins change hands and change wallets, the result is final. Simultaneously, there is no insurance protection of your bitcoin wallet: If you lose your wallet's hard drive data or even your wallet password, remember: your wallet's contents are gone forever.

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