Updated: Sep 1, 2018
Soon after I became involved in cryptocurrencies I learned that you could actually accumulate cryptocurrencies by mining them, ever since then I have been fascinated by the idea. Before I go any further I should explain what cryptocurrency mining really is. In traditional fiat money systems governments simply print more money when they need to, in the United States, it is the Treasury Department that prints dollars. In the cryptocurrency world money (coins or tokens) is not printed it is earned (mined).
For example, on the Bitcoin network, people are sending Bitcoin back and forth to each other all the time and unless there is someone to record these transactions no-one would be able to keep track of who paid who. The Bitcoin network keeps track of this by collecting all of the transactions made during a set period of time into a list, called a block. The miner's job is to confirm transactions on the network and write them into the ledger. This general ledger is a long list of blocks that are all linked together, it is known as the blockchain. The blockchain can be used to explore any transaction made between any two Bitcoin addresses, on any point on the network. When ever a new block of transactions is created it is added to the blockchain, creating an increasingly lengthy list of all of the transactions that ever took place on the Bitcoin network. So to put it simply the miners earn Bitcoin by using their computing power to keep the blockchain running.
My first thought was to build my own mining rig which I thought would be pretty fun. There are plenty of videos on YouTube that show you what components you need and how to assemble it but there are drawbacks to this. One drawback is the amount of electricity the mining rig uses, if you are in an area where electricity costs are high it will not be profitable to mine. The other issue is the amount of heat that is generated by the rig. The rig temperature needs to be controlled so that it does not overheat otherwise the rig will be damaged. There are different ways to control the temperature, most rigs have large fans to help cool the components, you could also have the rig in an air conditioned room but all of this will add to your costs.
Then I discovered that there are large cloud mining companies where you can open an account and basically rent computing power from their mining farms. After doing some research into several different mining companies I decided to invest some money into Genesis mining. Genesis offers a large variety of purchase plans. You can choose from a starter plan all the way up to a large maximum profit plan, they even offer custom plans. So whether you only want to spend a little or you are willing to spend a lot Genesis should have a plan that fits your needs. You also have the ability to allocate your mining power to just one currency or to a variety of different cryptocurrencies.
I have only been with Genesis mining for a couple of weeks but so far the payouts have been pretty good. My plan is to be invested into cryptocurrencies for a very long time so I believe this will be a very good way to accumulate them. I will be providing periodic updates on my mining progress and let everyone know if I run into any issues.
If anyone is interested and wants to give Genesis mining a try I have copied their web address below. I have also copied my referral code below, if you use the code when you sign up you will receive a 3% discount.
Affiliate code: jvX4rP
Until next time,