Regardless of the constant fluctuations in the crypto markets, the cryptocurrency industry's future is still bright. According to an ING International survey, about 35% of crypto enthusiasts in Europe believe that Bitcoin is the future of online shopping and 32% of these believe cryptocurrency will revolutionize investing strategies.
While Bitcoin price has seen an all-time high of around $62,000, purchasing the currency might not be possible for several investors. However, the good news is there are several Bitcoin mining machines available in the market that can not only cover the initial investment in a year but also mine the currency for profit in the following years.
What is Bitcoin Mining?
In simple terms, Bitcoin mining is the process of computing and verifying Bitcoin transactions using a Bitcoin mining machine and recording it to the Blockchain ledger. Several miners have to verify a single transaction before registering them as they are immutable.
By solving these complex mathematical equations or proof of work, miners are rewarded with Bitcoin. The more equations you can solve, the more Bitcoin you can earn. The complexity and the size of the rewards depend upon the mining pool.
If a single pool has several users , the rewards will be less, and the equations will be tougher. The ability to compute these transactions also depends upon the hash rate of your Bitcoin mining machines.
Certain mining machines can churn out hash rates of 44TH/S which will provide significantly better results than a machine producing 28TH/s hash rate.
How has DeFi revolutionized Bitcoin Mining?
Decentralized Finance is a much-required addition to the cryptocurrency world. It can promote the adoption of disruptive financial technology by bringing traditional financial services to the crypto world.
DeFi has also revolutionized the Bitcoin mining industry by leveraging dApps to build a stronger and advanced blockchain platform. It has brought additional resources to the existing Bitcoin mining industry and helps users leverage their existing assets to earn more assets using Yield Farming.
Another concept that improves the rewards of Yield Farming is Liquidity farming, in which users can benefit by receiving native tokens of the platforms besides the expected returns. Several platforms such as Zionodes have made this possible using robust blockchain technology and dApps.
Why should you choose Bitcoin mining over buying?
Here are a few reasons why Bitcoin mining is preferable over purchasing.
Most people who get into the crypto space do it for the money. While Bitcoin can produce excellent profits over a certain time, buying it might not be everyone's cup of tea right now. Currently, 1 Bitcoin costs over $60,000 making it unaffordable for maximum investors.
Some people choose to purchase it in smaller amounts. But in the end, you would still have to pay the whole amount. Especially, if the Bitcoin price does not increase or decrease. Looking at the growth chart of Bitcoin and other crypto assets, it is evident that it's going to become more difficult to own them in the future.
Bitcoin mining is the only other viable option to own Bitcoins. Considering the fact that you can earn 1 Bitcoin for less money using smart contracts provided by platforms such as Zionodes makes it an even more profitable option.
Even if you choose to create your own set up by purchasing an ASICs device, you will be able to earn your money back in a matter of months by mining Bitcoin. Also, Bitcoin mining is future-proof as a rise in Bitcoin's price in the future, so will Bitcoin mining profits.
While Bitcoin is the greatest hype in the cryptocurrency market, it is always good practice to put your eggs in different baskets.
Cryptocurrencies are prone to fluctuations, and the market is unpredictable. There are several use cases where the market rushed into Ethereum instead of Bitcoin, dropping BTC's value.
If you choose to purchase a Bitcoin, you can opt to trade it for other currencies, but you might have to do it for a certain loss depending upon its current value. To make holding cryptocurrencies profitable, users must have at least three different assets in their portfolio. Also, they have to constantly check for market fluctuations to minimize losses.
Crypto miners do not have to worry about diversification as the mining platforms such as Zionodes takes care of it for them. These platforms can automatically switch between different cryptocurrencies to provide the users most profits.
The cryptocurrency market can change at any moment, as evident from last year when mining Litecoin and Ethereum were more profitable than mining Bitcoin. However, when their prices fell, miners turned towards Bitcoin to reclaim profits.
Bitcoin mining platforms can automatically detect the most profitable cryptocurrency at the moment and automatically start to prevent any losses.
3.Security and Risk
There have been several cases where exchange wallets were hacked, and users lost all their assets. Buying a cryptocurrency such as Bitcoin is always risky not only because of the fluctuations in the markets but also because of digital thefts.
Storing all your crypto assets in a wallet makes it more vulnerable to hackers. Platforms such as Zionodes guarantees complete protection by keeping your assets in cold storage where they cannot be hacked. All the mined tokens are automatically transferred to the cold storage, thus reducing the chances of hacks.
Purchasing Bitcoin was all the hype until a more lucrative way of Bitcoin mining came into play. More and more users prefer to mine cryptocurrencies because of their several benefits: additional security, better profits, and diversity.
If you are looking to start your Bitcoin mining journey but do not want to invest in a Bitcoin mining machine, you can leverage smart contracts at Zionodes. You can contact us for more information.