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Bitcoin Mining Vs. Bitcoin Buying: Which is Better?

By February 14, 2018 No Comments

Bitcoin Mining Vs. Bitcoin Buying: Which is Better?
Today, there is no debate about which is the world’s most accepted cryptocurrency. It is Bitcoin. With the phenomenal emergence of Bitcoin worldwide, there are various questions revolving around this growing digital payments method. Two of the most trending topics are Bitcoin Mining and Bitcoin Buying. So what are these two concepts and how can you benefit from them?
Bitcoin Mining
“Mining” is a lingo for the exploration of new bitcoins — almost like finding gold. Mining is basically a term that defines the process of bringing Bitcoins into circulation. The process involves two stages – 1) Verifying, adding, and compiling Bitcoin transactions into a distributed public ledger known as the Blockchain 2) Releasing new Bitcoins. This can be understood in a better way with the help of an example. For instance, if John buys a TV from Eric with Bitcoins, the validity of the transaction needs to be verified. So, mining in simple words is the validation of such Bitcoin transactions.
The process of validation necessitates an accretion of Bitcoin transactions into blocks, and at the same time, the miner has to puzzle out a cipher riddle. The first miner who solves the cipher puzzle claims rewards and places the next block on the Blockchain. The mining reward includes both transaction fees, and newly released Bitcoins. Since mining of Bitcoin is a decentralized process, anyone with proper hardware and connection to the internet can participate in the mining competition.
Challenges of Bitcoin Mining
Following the procedures laid out in the software, the Bitcoin network continuously adjusts the difficulty level of Bitcoin mining after every 2016 blocks, which is almost after every two weeks. This is done with the objective of maintaining a continual pace of block discovery. Higher the difficulty level becomes, Bitcoin mining gets less profitable for miners. Thus, if more people are mining, it turns less lucrative for each mining participant.
Moreover, Bitcoin mining is also becoming exceedingly challenging with the emergence of new hardware, dedicated miner machines, and Application Specific Integrated Circuits (ASICs). So, a regular computer and graphics card, which were the only hardware of yesteryears to mine Bitcoins, are increasingly getting obsolete with the advancements in technologies.
Buying Bitcoins
Buying Bitcoins is easy. It can be purchased through Bitcoin exchange platforms like Belfrics. You can straightaway start buying Bitcoins through a variety of payment options ranging from debit cards, credit cards, wire transfers, other cryptocurrencies, or by physically depositing hard cash in the exchange’s bank account. In fact, in some countries, there are Bitcoin ATMs as well.
What Will You Need?
You will need an online wallet to store the Bitcoins you buy. And, when it comes to that, it’s imperative to choose a reputed, global Bitcoin exchange platform like Belfrics.
Belfrics is one of the most popular bitcoin wallet offering end-to-end exchange services and highly secure digital wallet offerings in India for both selling and buying bitcoins. Belfrics’ services can be availed from anywhere in the world via web portal as well as mobile platform.
Advantages of Buying Bitcoins Over Mining
In recent times, mining can get very expensive, particularly due to the costs involved in buying dedicated miner machines, and other allied expenses like accounting for storage, electricity, security, internet, and maintenance costs.  All these push the initial investment and recurring expenses of mining to a pretty high level.
Even sharp and expert Bitcoin miners can take hours, days, and weeks to effectively mine and get new Bitcoins. Buying, on the other hand, is an instant process, as you are picking up already existing Bitcoins from an authorized exchange.
In case of mining, the transaction fee received by miners are negligible, as compared to the effort, time, recurring costs, and initial investments.
Advantages of Mining Over Buying Bitcoins
Bitcoin mining allows its users to track their transactions. Moreover, in mining, Bitcoins are attained fresh, as a reward for the mining services. There is no additional fee that is charged to acquire the coins.
It is important to understand that both Bitcoin buying and Bitcoin mining have their own share of pros and cons. Mining, however, isn’t ideal for the vast majority of Bitcoin users, as it requires special sets of skills and substantial investments. Buying is relatively an easier approach, which enables a user to instantly start making good money. Interested to get started? Sign up with Belfrics to step into the world of Bitcoins effectively and securely.

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