One More Cup of Coffee. It was created back in by an Satoshi Nakamoto who is basically anonymous. Aside from his name, no one knows much else about him, or her. Since Bitcoin has grown in popularity to become a trusted form of payment for lots of companies, including Microsoft, Dell and Expedia.

Undeniably though, it's still very controversial. The price of Bitcoin varies wildly on a day to day basis.

There are people that say it's all a sham, and that cryptocurrency is destined to die without government backing. Others say it's the currency of the future.

I'm not a technical person, and do not have extensive experience with bitcoin mining. If I get some of the technical aspects wrong, please correct them kindly in the comments. The mining is actually done by the hardware — little computers, or over sized calculators — used to perform the complicated mathematical calculations necessary to encrypt and decrypt transactions on the Bitcoin network.

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In order to keep things simple for the rest of this post, we will call the hardware Bitcoin Miners , or miners. And those who operate the hardware will be referred to as Bitcoin ledger managers , or ledger managers. Yeah, it' s getting complicated fast.

One thing I quickly learned about Bitcoin mining is that is uber-technical. It's not necessary to know in oder to actually make money. Do you know how your car works?

For my generation, that answer is usually a NO. But you can drive, right? Instead, I will only give you what is absolutely necessary for you to get started with mining and figure out if we can actually make money mining Bitcoin. Bitcoin was created to avoid any kind of centralized control, like banks and governments have over the dollar. This is what makes it unique, and it's also what gives Bitcoin its strength as a currency.

You see, for Bitcoin to work — with no one person or entity controlling it — Bitcoin miners are used to help maintain the ledgers and track every single transaction made on the network. Each time a transaction occurs, all the miners check their ledgers and adjust things accordingly.

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Everything in the Bitcoin network relies on numbers: Each user has a number, each Bitcoin has a number, and each transaction has a number. In fact, you could say everything is a number, rather than has a number. Each time a transaction occurs, a number is generated and Bitcoin miners go to work trying to verify the transaction by decrypting all the numbers involved. If you want to get started mining Bitcoins then you will need to buy the necessary hardware. You can easily spend thousands of dollars trying to keep up with the demand and growing Bitcoin user base.

In the early days, Bitcoin ledger managers started out with a bare-bones computer dedicated to mining Bitcoin. As Bitcoin grew more popular, mining them required more computer power. Within a year, the ledger managers had to use a computer with a specialized card that was made solely for mining. As more and more people adopt Bitcoin as a payment method, more ledger managers will join the network and look for faster, better ways to mine. Every time they come up with a faster solution, the old hardware becomes instantly outdated and useless.

Aside from your Bitcoin miner, you will also need a specific power supply.

Want to make money mining bitcoins? Criminals have you beat | ZDNet

In addition to the cost of your mining equipment, you also need to factor in the cost of electricity. Bitcoin miners use quite a bit of power, so you need to pin down how much you are paying per kilowatt.

However, if you run the right hardware, and you live somewhere where power is near ten cents per kilowatt, it seems that you can expect to earn a few dollars per day. Apparently the price per kilowatt is wildly different from state to state, with states along the east coast typically being the highest. I have a friend in Florida who pays about fifteen cents per kilowatt. Suddenly, making money minding Bitcoins looks like it's going to require quite a bit of investment capital, and a commitment to the long term.

This is not a weekend project! You have to do it in blocks. Each block is currently worth about twenty-five Bitcoins, but the price of the actual coins depends on the current conversion rate of Bitcoin, which is always changing.

The first way is called solo-mining. This is exactly what it sounds like. You get all the necessary hardware and you set it up run.

If you decrypt a block of Bitcoin transactions before the other miners in the network, you get paid. The second way is called pool-mining.

This involves you and a group of others who all work together to decrypt transaction blocks. For each block your pool completes you all get paid individually, according to how much work your hardware contributed. To make must one coin is going to take a lot of hardware.

Coupled with the cost of electricity and the potential cost of startup equipment to keep up with competitors, it's clear that to make money mining Bitcoins, you have to invest a good deal of time, cash, and brainpower. Mining coins is not the only way to cash in on this market.

You can also do some speculation trading in stock markets or by buying and selling bitcoins. I didn't do it because I didn't understand how to secure your wallet so that hackers couldn't steal your coins. I would have been a millionaire. As far as stock investing goes, there are a few ETF that trade based on Bitcoin price movements.

It works in the same way you invest in a gold ETF or gold stock. You don't actually own the coins, but the stock moves in tandem theoretically with the price of the commodity.

Every part of it is dependent on something else, which makes it impossible to know what to expect when it comes time to collect your payment. Combine that with the added frustrations of dealing with hardware costs and maintenance problems, I suspect that Bitcoin mining is something most folks do out of pure passion. Bitcoin mining actually seems like one of the worst ways to try to make money online. In fact, it might be THE worst I have ever seen, especially for newbies.

Those same people pump real dollars into the Bitcoin niche everyday — just like RC car hobbyists pump money into their niche for cars, tools and accessories. All this adds up to a nice little niche that you can take advantage of as an affiliate marketer what I do for a living.

If you want to know more about it, take a look at the Wealthy Affiliate community. Your email address will not be published. Leave this field empty. I started my first internet business in because I wanted to start every day with a relaxing cup of coffee instead of going to a regular job.

With One More Cup of Coffee I hope to help other people learn how to make money online and enjoy life in their own way. This is a newbie-friendly, guru-free zone!

Can You Really Make Money Mining Bitcoin? What's up ladies and dudes!

Great to finally meet you, and I hope you enjoyed this post. My name is Nathaniell and I'm the owner of One More Cup of Coffee. I started my first online business in promoting computer software and now I help newbies start their own businesses. Sign up for my 1 recommended training course and learn how to start your business for FREE! Latest posts by Nathaniell see all Best Jobs for Journalism Majors Aren't Always in Journalism - June 20, Can You Really Make Money With The PanelPlace App?

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Want to make money off Bitcoin mining? Hint: Don't mine

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