I, like the rest of you, scoffed at Bitcoin. It’s a strange, nerdy, ephemeral thing that only has value based on what everyone else thinks its value is. Wait a minute – that’s just like the dollar! Of course, the dollar has the weight of the U.S. Government guarantee behind it. Though, without the gold standard, money can be printed whenever the elected leaders think it should be, like we have seen over the past year.
Printing money will depress the value of the currency, but what about mining? Different cryptocurrency works differently, but Bitcoin has a finite amount that will ever exist. That number is 21 million and about 19 million are already mined. The reward for mining is getting some pretty Bitcoin in your virtual wallet. That reward decreases every four years, which makes it more and more difficult to mine over time. Those last 2 million will take a long time to mine. That scarcity tends to drive the value up.
Check out this video to learn a little more about mining. There are more videos on how to mine cryptocurrency on YouTube than I can count, so just do a search and get started. I use NiceHash. It actually mines Etherium and pays in Bitcoin. It uses my video card to compute in the background. Do a search for your video card to see how much it can produce in a month. A similar search can find out how much power you will use to mine. Compare that to your monthly profit to see if it is worth it. Only higher-end video cards will be worthwhile. Many others have noticed this too, which is why most are sold out right now.
This probably won’t make you rich. I’m on track to make $62 worth of Bitcoin per month. It’s an interesting experiment. I’ll let you know how it goes.