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Bitcoin is a cryptocurrency that has been around for well over a decade, and it’s one that has become a household name at this point. That being said, there are still a lot of misconceptions about it. This is especially true when it comes to how new coins are mined. Let’s take a look at five misconceptions people have about Bitcoin mining and what the truth is behind these common misconceptions.
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1. Bitcoin Is Very Energy Intensive
Many people believe that Bitcoin mining uses up a lot of energy. Because of this, they think it’s harmful. While Bitcoin mining does require electricity to achieve, it’s not nearly as crazy or dangerous as people think. Bitcoin doesn’t use up much energy on a global scale in comparison to many of the other electrical demands that we have, and it certainly doesn’t have a massive impact on the environment. This is true regardless of whether it’s a single person mining or a Bitcoin mining company.
2. Bitcoin Mining Can Only Be Done at Home
Bitcoin mining has been traditionally done in large operations or even at home, mostly during its inception. But you don’t need to own a miner or a host of them to get started. There are plenty of cloud operations that will allow you to tap into Bitcoin mining without having to do any of the actual mining on your own. This makes it easier to get involved without nearly as much computational power or electricity usage.
3. Miners Own the Network
The Bitcoin blockchain operates on what’s known as proof-of-work. Miners are incentivized to solve complex algorithms, and they’re rewarded for it. While they’re instrumental to the Bitcoin network and the addition of new coins to the world, they have no more power over the Bitcoin network than anyone else.
4. Bitcoin Mining Has to Be Done Solo
There are some people who decide to mine Bitcoin on their own. They may prefer to reap the reward by themselves. But do you have to do it all alone? You don’t have to work by yourself. In fact, many Bitcoin miners will actually join forces in order to work faster. They’ll pool their funds together and then they’ll divide them up evenly. It can be a great way to support the Bitcoin network and get rewarded with greater ease.
5. You Can’t Make Money Bitcoin Mining
Bitcoin mining is often seen as unprofitable. But is this true? Bitcoin mining is actually still profitable, especially if you know what it takes to see a return based on the equipment that you’re using, the energy that you’re using, and the time that you’re spending mining Bitcoin.
Bitcoin is already confusing to a lot of people. Bitcoin mining can be even more perplexing, which lends itself to the creation of many myths and misconceptions. Brush up on the truths about Bitcoin mining with the above information to learn more about Bitcoin mining and how you could potentially start the process of mining Bitcoin yourself.
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