Bitcoin Mining & Returns for All

Posted by on September 11, 2017

The process of creating bitcoins is called ‘mining’ of bitcoins. Bitcoin is a cryptocurrency i.e. based upon digital cryptography, therefore bitcoins are not available in any physical form that you can touch and feel. Bitcoins are discovered by solving complex mathematical problems and then added to the distributed ledger called ‘blockchain’. This blockchain holds the records of all the past transactions, no record is ever deleted. The best part is that it is 100% decentralized i.e. nobody owns or controls it. In fact, it is distributed in many to many relationship format, therefore bottlenecks are avoided.   Why Bitcoin is Rising? Bitcoin was created in the wake of the 2008 global financial crisis to operate outside of central governments, banks and financial institutions. It has all the features of a currency like:

  • Precious: total 21 millions coins can ever be created, huge demand less supply.
  • Exchangeable: You can exchange bitcoin with any Fiat currency like dollar, yen, rupee or with any other cryptocurrency like ethereum, zcash, dash etc.
  • Divisible: It can be divided into million of bits unlike dollar that can only be divided in cents.
  • Global: Bitcoin is all across the globe in all the countries
  • Intrinsic Value: Bitcoin gets it’s intrinsic value from the electricity cost that goes in for mining, just like gold and silver has mining cost.
  • Storage: It can be stored and deposited.
Now the additional features and factors that makes it go up in price against the Fiat currency:
  1. Decentralized: There is no Government control over this currency, this is a currency without any boundaries, no country or state controls it.
  2. Anonymous: Nobody knows who hold the bitcoins, only wallet addresses are reveled, nobody knows who owns the wallet. This makes it highly suitable for hiding your money from unwanted entities.
  3. Technology: It is a technology in itself that is why it is highly scalable, just like Google, Facebook, Twitter.
  4. Acceptability: Day by day more merchants, states and people are implementing the use and acceptance of bitcoins that pushes the price up.
  5. Scarcity: There can only be 21 millions of bitcoins ever, out of which so many coins are lost already. Everybody wants bitcoins now, this pushes up the demand and limits the supply.
  6. Difficulty: The bitcoin mining difficulty increases continuously with the new blocks of bitcoins getting discovered. This requires the need better hardware or more electricity consumption on the current hardware. This increases the cost of mining, reduces the returns that pushes up the prices.
  7. Legalization: Many countries like Japan and states in US have legalized the bitcoins. In Japan alone, more than 100K establishments have started accepting bitcoins for payments.
  8. Wallets: New and existing wallets keep on promoting the use of bitcoins that makes it easy to use and increase awareness.
  9. Exchanges: It is easy to exchange the currency in any other Fiat or Cryptocurrency. Exchanges are promoting the use of bitcoins.
  10. Price & Profitability: With the increase in prices, it becomes more profitable to mine and it pushes up more people into mining, they buy bitcoins to buy mining infrastructure that pushes up the prices. Similarly, investors get more profits through the price rise, therefore they buy more bitcoins for more profits.
Invest in Coins, Trade or Mine the coins? Bitcoins are highly volatile, therefore investing or trading is highly risky. It is better to mine the coins, so that you get the benefits of appreciation + mining rewards. At present the returns on mining are more than 20% per month. If the price keeps on rising, these returns will be phenomenal. How to mine Bitcoins? Bitcoins are mined by solving complex maths problems, the capacity to solve these problems is called hashpower. Your computer with best graphics card can provide power in megahash per second (Mh/s), however that won’t give you any returns. You need at least a gigahash per second (Gh/s)to get something, however that is also not sufficient. Therefore several terahash per second (Th/s) of power is needed. 1 Th/s = 1000 Gh/s and 1 Gh/s = 1000 Mh/s. Now you can estimate how much power is need. Your computer or smart phone is not suitable, you need a series of computers or chips. This is facilitated by ASIC that is a combination of several microchips on one board. Application-specific integrated circuit (ASIC) miners have taken over completely. These ASIC machines mine at unprecedented speeds while consuming much less power than FPGA or GPU mining rigs. Two ways of Bitcoin Mining:
  1. Hardware Mining: Mining on your own machines (hardware) at your own location and electricity.
  2. Cloud Mining: Mining at a remote location through a third-party expert at best location and best electricity rates.
Hardware Mining You need the best machine to mine the coins as the difficulty is extremely high and electricity cost is a big concern. Therefore, you need the following:
  1. Location: A place to keep the machines, it would be difficult to keep the machines at home as they create huge noise and generate a large amount of heat.
  2. Electricity Load: As per the number of machines, you need to get the approved load for the electricity. Your electricity supply may fail if you overload it.
  3. Electricity Price: You need a cheap electricity rate, the average rate is $0.09 per unit. If you can get better rate, it is more profit.
  4. Temperature: The machines will need a cool temperature to be maintained i.e. 20 degrees or below that. Therefore a cool place is needed or you have to spend on ACs.
  5. Internet Connection: You will require a good internet connection as per the number of machines that you are going to install.
  6. Monitoring: You will need CCTV cameras, monitoring hardware devices, etc. for constantly monitoring the machines.
  7. Routers: You will need efficient routes for the machines.
  8. Power Backup: You have to ensure that the machines run all the time, if there is any electricity failure, there should be power backup.
  9. Noise & Heat Control: You have to take care of the noise and heat too.
  10. Machines: This is the most important one, you can’t mine without the machines. You can buy AntMiner S9 from the official website: Asic Bitcoin Mining Hardware From Bitmain; Remember they don’t have any distributor, dealer or shop. They sell through online sale. The machines get sold out in few seconds to few minutes. They accept payment in bitcoins and send through courier. You have to take care of the customs yourself. There is no alternate machine or manufacturer to match up Antminer S9’s efficiency and profitability except BitFury’s Blackbox, however that will require a minimum investment of $1.25 million.
#Remember to buy Antminer S9’s original power supply for the machines. This works on 220v therefore, you have to make arrangements for 220v in US/Canada. I can help you in setting up your hardware anywhere in the World. You can send me an email to ceo@startuplanes.com; Advanced topics like solo vs. pool mining, stratum server, pool selection, miner fee, transaction fee etc. are not covered. You may connect with me through mail to learn more. Cloud Mining Cloud mining is an efficient and easy way of mining the bitcoins and other cryptocurrency, however most of the companies are scams. This is because there is no way to find out the legitimacy in an unregulated market. Therefore only trust upon the leader. I am going to share the steps and how to do it yourself.
  1. Wallet: You should have a bitcoin wallet before you start mining bitcoins. You can opt for blockchain wallet, if in India, you may go for ZebPay. You have to connect your bank account, get KYC done before you transfer money to the wallet’s account to buy the coins. Once you have the money credited in the rupee balance of your ZebPay account, you may buy the bitcoins at the present rates.
  2. Register: You have to register an account at Genesis-Mining. It is the leading company in cloud mining. Don’t get into any other as most of the cloud mining companies are scams. Genesis is the world leader and I personally know the team of Genesis.
  3. Contract: Now, you can buy a bitcoin mining contract. I would recommend a Diamond Contract of 15 Th/s that will cost you $1950 (price at the time of writing this answer). You can use the discount code to get 3% discount and 2% cash back, here it is: IRxzD7
  4. Payment: You will be required to pay in bitcoins, there will be a payment id i.e. a wallet address. You will get 30 minutes to make the payment, send the payment from your zebpay wallet to the payment id, copy-paste from the genesis to zebpay. Wait for some time and keep watching the confirmations, it will show you paid and will send you contract and invoice by mail to your registered mail id.
  5. Setup: In the setup, you should enter the wallet id where you wish to receive your daily payouts.
Now it’s done. It’s 16.7% returns per month in bitcoins, right now. It can be far more if the price of bitcoin keeps on rising. When the price rise, maintenance fee will reduce, your bitcoin returns will increase, also your dollar returns will increase as the price go up. I’m available for consulting. I can help you in setting up hardware or cloud mining. I can also help you in ICO or anything related to cryptocurrency. You can talk to me by booking a call through Fundraising | Legal Consulting | Technology Consulting for Startups - StartupLanes.com (from India). For international I’m available on Shishir Gupta - Raise Venture Capital & Bitcoin/AltCoin Mining/Trading, Website/App Development Expert - Clarity Happy Mining. Thanks for reading. You may share this on your social media wall as a token of appreciation for my long answer. Note: This answer is not recommendation or solicitation of business. All business investments carry several risks. As Bitcoin mining is highly profitable, it is subject to high risk too.
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