By now you’ve heard of the wild gains that Bitcoin and other cryptocurrencies have hit recently. Bitcoin just saw a 10% surge, putting the crypto market at the forefront of the conversation for economists.
The crypto market currently relies on individual “miners” to run the data for the system. The number of cryptocurrency users has grown from hundreds to millions. This means the amount of computing power needed to mine data has also grown exponentially.
Individuals who choose to mine cryptocurrency can see their investment double or triple within a year’s time. Just a few years ago, $50 could get you a single Bitcoin that today is valued at more than 100 times that.
Thinking about getting your own piece of the cryptocurrency pie? Here’s everything you need to know about the current crypto market.
What Is Mining and Who Is Qualified?
There’s no need to grab a pick and climb down a shaft to mine cryptocurrency.
Cryptocurrency mining is done by becoming a collective contributor to the market. Basically, you become an accountant.
Every transaction related to cryptocurrency is accounted for by a set data. This is encrypted to protect its integrity.
Every time someone trades a piece of a bitcoin for an item, the data around the buyer, product, and receiver are all encrypted. This long string data shows the history of every “cent” of that bitcoin.
This protects the integrity of bitcoins from piracy. It also creates a whole lot of work for computers to calculate and transcribe.
Anyone with the right hardware can “mine” or set up an accounting machine for cryptocurrency. However, as the transactional history builds over time, you’ll need a more powerful machine.
The efficiency of mining machines is measured in wattage, computing power, and the strength of your internet connection.
You may have to seek a pricing calculator to determine whether mining fits into your budget. In some cases, it might make more sense to invest in someone else’s operation.
Can I Afford To Mine?
Your ability to afford to mine cryptocurrency depends on your location and your ability to invest. As the complexity of accounting needs increases, more computing power is needed.
This translates to added computing power, cooling systems for those computers, and regular maintenance.
There are several companies who will handle all the overhead for you. For the price of an initial investment, they can purchase equipment at a data center with cheap electricity and fast data connections.
Despite all the great content and resources in the US, Americans pay some of the highest prices for the slowest internet speeds on the planet.
That doesn’t mean it’s impossible to mine cryptocurrency there. But it does mean you’ll have to think more strategically about your budget.
Investing in mining equipment with friends will allow you to start with more computing power. You’ll be able to generate a return on investment more quickly.
You should make your move soon, since data complexity and the price of currency rises on a daily basis.
How Is This Currency Different?
The goal of cryptocurrency is to become like the Esperanto of the global market. It’s loved by people all over the globe because it’s not tied to any government or government-sanctioned group.
That makes it more of a populist currency. There’s no physical manifestation of this currency. This has lent a degree of mystery and skittishness from potential investors.
Instead of being backed by a government or large bank, its value is distributed between owners and miners. Despite the term “crypto,” the crypto market actually has a greater degree of accountability than traditional currencies.
Every cent of Bitcoin, for instance, has a history and is tied to an owner. There’s no way to hide a cent of cryptocurrency.
Because it lives in an online universe, cryptocurrency has the ability to be programmed. It can act as a representation of a contract or a debt registry. The currency itself can be a legal document to determine accountability.
What’s The Future of Cryptocurrency?
The future of the crypto market depends on its ability to enter the “straight” world.
As of now, cryptocurrencies are only well-known in tech circles, conspiracy theory groups, and the world of radical economists.
One major turn-off of cryptocurrency’s flexibility comes in its connection to the dark web and the black market. The international drug trade on the “Silk Road” was tied to Bitcoins for its lack of connection to a specific location or government.
For future success and expansion, the crypto market needs a makeover.
For some users of the crypto market, it’s merely a vessel to move large sums of money to escape exchange rates. Investors and industries use this to turn their balances into money quickly.
This can do damage to the image of cryptocurrency. When people don’t believe in a currency in a long-term sense, it devalues the market for everyone.
However, while other markets suffer from credit card data hacks, cryptocurrency is immune to this. A stolen bitcoin wouldn’t be able to be exchanged without linking to somebody somewhere.
The future of cryptocurrency is one of continued growth, expansion, and corporate investment.
How Can You Get a Piece of the Crypto Market?
Getting involved with the crypto market has never been easier.
Depending on where you live, you may want to begin your own mining operation. You may also want to invest in someone else’s.
There are several different services available for the many currencies. You can invest some of your money in several markets or get involved in something more stable, like Bitcoin.
If you want to know how to invest, please contact us. We want to help build your trust in the market.
And we’re more than happy to help lead you in the right direction and expand the use of cryptocurrency worldwide!