Bitcoins are a relatively new concept and are still developing. Though it comes to be advantageous, it still has its cons underlying the attractiveness it offers. Due to these reasons, it becomes unviable for many to run mining software on their systems. And why purchasing bitcoin becomes a cheaper as well as an easier option for most.
In 2009, the foremost Bitcoin, named Block 0, also referred to as the genesis block, was mined. Soon after, the first bitcoin software went live, followed by Block 1 that commenced the bitcoin market officially.
Some of the advantages mentioned above may also be a flaw if invested without proper knowledge.
- As the government does not regulate cryptocurrencies, there are high chances of fraud and malpractices.
- There are major chances of Bitcoins’ values rising. Still, the market always remains unpredictable, and there can be a severe loss if the values go down suddenly and with a tremendous amount.
- Though bitcoin faucet may be useful, and everyone does not widely use them. Only a few people accept Bitcoin payments as their major payment method.
- Bitcoins aren’t covered under insurance. If there’s a loss, then there’s no way of retreating it back. There aren’t any government plans for insurance since any major authorities don’t control it.
Why does one mine?
The answer is simple, the system generates one new bitcoin faucet, which you are paid, for your help in the mining process. But why doesn’t everyone mine then? Mining requires a large amount of processing power, and as the userbase becomes larger, the system requirements grow exponentially. This means that the machines need to be a lot more powerful, and they consume a lot more electricity for mining.
It’s evident that a few years ago, this cryptocurrency could have been mined on an old laptop, but now there are special machines built for this purpose, and they can set you back thousands of dollars.