Over the past seven years the Bitcoin industry has grown organically and continues to grow at good pace. The adoption of new technology brings in new possibilities and means to earn money and Bitcoin is no stranger to this. Bitcoin inherently is the kind of technology that yields money with greater adoption and acceptance. This has been the unique selling point for the cryptocurrency and has motivated people to uphold the ledger system. Let us look into various methods of investing in Bitcoin and earning steady returns over a period of time:
Bitcoin Mining:
Mining for Bitcoin has been one of the straight forward ways to earn money from Bitcoin. The Bitcoin eco system has been designed such that the adoption is rewarded through mining. This provides a smart way to issue the currency and also creates an incentive for more people to mine.
How it works:
People are sending bitcoins to each other over the bitcoin network all the time. Unless someone keeps a record of all these transactions, no-one would be able to keep track of who had paid what. The bitcoin network deals with this by collecting all of the transactions made during a set period into a list, called a block. It’s the miners’ job to confirm those transactions, and write them into a general ledger.
Investment required:
To be able to successfully mine bitcoins miners use special software/hardware to solve math problems. Few of these hardwares include: Antminer S7, Avalon6 and SP20 Jackson. Investments in these suite would help to earn steady returns on Bitcoin.
Venture Capital Investing:
The nascent Bitcoin ecosystem has a long way to go and boarding this train early would be a wise decision. Many technological startups that revolve around Bitcoin and Blockchain Technology are coming up. They revolve around the applications of the currency and its underlying technology. Picking up the right firm to invest in can reap heavy profits on a long term scale.
Bitcoin has seen heavy VC funding and the trend has been on the rise since the start. This proves the growing confidence and the potentiality of the cryptocurrency of transforming the future.
Direct investments:
The last but the most important and the most viable form of investment is direct investment in the currency. This is very similar to currency trading and can vary in terms of the capital invested and the time frame of investments. Direct investments vary from intraday trading to long term investments. While intraday trading might not be so feasible, long term investments would have heavy rewards vested with it.
Long term investments:
Long term investments can again be categorized into various formats. Owing to its unique properties, people are actively seeking to make Bitcoin a portfolio diversification component. Apart from straight forward investing, Bitcoin Investment trust and Bitcoin Retirement account make good long term investments. These investments are lucrative because of the improving adoption of the currency and also the infrastructure revolving around it.
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