{"id":16840,"date":"2021-01-12T13:18:10","date_gmt":"2021-01-12T19:18:10","guid":{"rendered":"http:\/\/money-news-online.com\/blog\/?p=16840"},"modified":"2021-01-12T13:18:10","modified_gmt":"2021-01-12T19:18:10","slug":"12-01-2021-an-introduction-to-bitcoin-mining-and-daily-news-from-the-hyip-industry","status":"publish","type":"post","link":"https:\/\/money-news-online.com\/blog\/2021\/01\/12\/12-01-2021-an-introduction-to-bitcoin-mining-and-daily-news-from-the-hyip-industry\/","title":{"rendered":"12\/01\/2021. An Introduction to BitCoin Mining and Daily News from the HYIP Industry"},"content":{"rendered":"

Hello everyone, and welcome back to the MNO blog<\/a> which has been supplying you with important and useful information related to the HYIP industry, matters surrounding it, and delivering the most talked about investment opportunities for over thirteen years now. First let me say again many thanks for supporting MNO during these quiet times by following me on Telegram<\/strong><\/a>, Twitter<\/strong><\/a> or Facebook<\/strong><\/a>, or by submitting your email address here<\/strong><\/a> and subscribing to the regular news and updates from the HYIP industry. Also, thanks for your always welcome attention and thoughts on the MNO ShoutBox<\/a> and your feedback which you can submit here<\/strong><\/a>, at abramsonp@gmail.com<\/strong> or by chatting with me on Telegram @mnoblog<\/strong>.<\/p>\n

It seems the world has gone a bit crazy over the last few months as the main goal for most people is simply to survive the pandemic and go on with their daily lives with all the various restrictions and limitations. This is something truly unseen in recent world history and while we were all hoping that 2021 will be better than its predecessor it’s so far been exactly the same. The situation in many places is so dire and grim and more new strains of the virus seem to appear in frightening proportions that the population of some countries is most afraid since the first time since world wars of the last century.<\/p>\n

It’s no wonder then that even despite the fantastic level of growth seen recently in cryptocurrency markets where new all time highs were recorded last week and BTC hit the $41K mark it’s still pretty much the same old story when it comes to the HYIP industry. People do not care much about investments at the moment<\/strong> (and rightly so when sometimes their very own lives are at stake!) and many are simply functioning in survival mode. At the same time the once active experienced HYIP admins prefer to collect their cryptocurrency profits and sit still waiting patiently for a market upturn<\/strong>. And that will inevitably happen, as it is inevitable that the Covid-related crisis will sometime end. The only question is when! And that’s the million dollar question no one can give you a direct or clear answer to, even myself.<\/p>\n

As the HYIP industry is still very slow and quiet it might be a better idea today to talk about BitCoin which seems to continue making headlines across the world these days. Of course, I will also cover the latest updates from the only actively developing program on the MNO monitor<\/a> which is QubitTech<\/a> in the news section of today’s news post. First however I should discuss one other important aspect of the BitCoin market \u2013 mining<\/strong>. So what is the definition of mining, how you can do it and whether it’s still profitable to mine BitCoins. I’ll try to answer all those questions below so keep reading for more.<\/p>\n

I suppose the first question on most people’s minds is what exactly is BitCoin mining and how does one go about it. I’m not going to delve too far into the past here since we’ve first of all covered the concept of what cryptocurrencies are<\/strong><\/a>, specifically BitCoin, in previous articles and how they work. But what exactly is \u201cBitCoin mining\u201d<\/strong><\/em> which we hear so much about?<\/p>\n

A common misconception might be that mining BitCoins is the equivalent of creating new BitCoins and introducing them into the whole Blockchain network to be bought and sold. It’s easy to see where you might get that idea, but in fact there’s a bit more to mining than just that. In the most basic terms \u201cmining<\/em>\u201d is the system that moves and records the movement of currency from Point A to Point B, sort of like what may be deemed the \u201cledger<\/em>\u201d in traditional banking but in this case not under any one central authority as such.<\/p>\n

If you wish to participate in doing this there can be a reward in it for you<\/strong><\/em>, think of it as a sort of referral commission as with online HYIPs. The problem is that it’s a complicated and costly procedure<\/strong><\/em> which may only return a very bare marginal amount of money over that which it costs you in terms of time and resources. So here’s a very rudimentary example of how it might work. Technically the \u201cminer\u201d doesn’t in fact do all that much, the work is done by a computer<\/strong><\/em>. Transactions are complicated and random, more so that regular people can decipher, so you need a computer to figure out the algorithm. It’s just that the algorithm is so complicated it can take forever to crack.<\/p>\n

Let’s say if we were to play a game where I was to ask you \u201cpick a number between one and five, and if you guess right I give you a dollar<\/em>\u201d. BitCoin mining has evolved into a game where your computer picks a number between one and one million, and your reward is one cent. Theoretically yes, you can make money from it, but the time and electricity required to get the right answer means the average guy with a laptop in his home won’t profit whereas a big company with a warehouse full of high grade computers going 24\/7 will. Sort of like a lottery in many ways, you can buy one ticket or buy a million tickets, no one can say who the winner is but if you have the finances to do this on a regular basis we know who will eventually earn more on average.<\/p>\n

When your computer eventually comes up with the right batch number, it should then determine which pending transactions will be inserted in the next block of pending transactions on the blockchain. Compiling this block represents your claim for payment<\/strong><\/em>, a commission if you want to call it that, as you\u2019ve now become a temporary banker of Bitcoin who gets to update the Bitcoin transaction ledger. The block of transactions you\u2019ve participated in creating, (technically what your computer calculated, but whatever) now goes into the wider network so other computers taking part in the process can validate it<\/strong><\/em>. Each computer that validates your solution updates its copy of the Bitcoin transaction ledger<\/strong> <\/em>with the transactions that you chose to include in the block.<\/p>\n

For newbies I know that might all sound a bit technical and complicated but at the end of the day it’s your computer doing most of the work here and not you personally. All you have to do at this point is claim any transaction fees associated with what you inserted into the block. From this point on any transactions in the block entered by your machine are now confirmed by the Bitcoin network and are virtually irreversible<\/strong><\/em>. In simpler terms just imagine a cash in hand transaction done with a street market trader.<\/p>\n

I guess to the uninitiated it might be easy to think of all this as free money. Just turn on your computer and allow it to run while you go off and put your feet up in front of Netflix or whatever, right? Unfortunately if it was only that easy we’d all be millionaires by now. The reality is that there are a huge number of variables here. For one thing there’s only a finite number of BitCoins out there to begin with, meaning that the more miners participate the smaller the split between the transaction commissions becomes<\/strong><\/em>. They can compensate for this by demanding higher fees, but ultimately all this does is make you less competitive and forces most sellers to horde their BTC until another day.<\/p>\n

Something I don’t want to go into in any specific detail in this article is the computer hardware products that can be purchased to assist you in BTC mining. Reason being it’s not the purpose of this article and is something individual readers can research for themselves if they feel it’s something they wish to put their time and effort into. It also makes things unnecessarily complicated, while my goal here is to just give a simple basic guide to how things work. The thing is though, the private individual getting started for the first time has next to no chance of competing against the professional BTC \u201cmining farms\u201d<\/strong> <\/em>as they are known. So what a lot of independent miners do is club together as part of so called \u201cmining pools<\/strong><\/em>\u201d, in other words sort of like a co-operative. Everyone combines their resources and hopefully earns more money between them than they might make alone. Again the variables that govern this are subject to extreme lengths \u2013 for example the the price of electricity in some place like Germany is going to be vastly more expensive than it is in let’s say China. What’s profitable for Mister X may not be worthwhile for Mister Y.<\/p>\n

Finally, and I guess this is the most obvious factor, is the wildly unpredictable and fluctuating exchange rate of BitCoin itself<\/strong><\/em>. You can put so much time, effort, expense, and resources into it only to have the value collapse overnight and end up losing a lot more money than you invested. Just like a HYIP or a Ponzi when you think about it. It’s true that BTC has recently, at the time of writing, reached a record high, but the bigger the bubble the faster the crash. In a nutshell then it’s possible to earn from BitCoin mining, but in much the same as it’s \u201cpossible\u201d to earn from gambling it wouldn’t always be advisable as a career choice or a primary source of income you depend on.<\/p>\n

Since this is something I know a lot of readers think about, or at least have thought about in the past, I hope you won’t mind expressing your own opinions here in the following poll. By all means, remember that a lot of what you see on the MNO blog<\/a> is just my own musings anyway and if you don’t agree then I’m quite happy to hear about it. The poll itself is totally anonymous and untraceable, but if you wish to say something either to me or to your fellow MNO readers about anything you see covered here then you are free to do so on the MNO ShoutBox<\/a>. The question related to the article is as follows, please just pick the answer which comes closest to matching your own opinion:<\/p>\n

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Will you consider mining BitCoin?<\/strong><\/p>