Bitcoin has seen tremendous growth in value since it was first released in 2009. It is seen as the first cryptocurrency and a way to store value and handle transactions online. It’s completely anonymous and once a trade is made, it can’t be rolled back. These properties have led to its widespread use and its increasing value. The value of Bitcoin has skyrocketed.
Like gold and other commodities, there are two ways to invest in Bitcoin. You can physically buy the commodity or invest in the companies that are mining the commodity. Investing in mining companies is often a better idea because your investment grows with the value of the company and the value of Bitcoin. Instead of getting a measly 0.1% interest rate from your savings account at your local banking institution, you can get 10% or more per month from a cloud mining company.
In order to understand why cloud mining is the future of Bitcoin, it’s important to go back to the early days of Bitcoin. Bitcoin mining could occur on a desktop computer in the background while users could do other tasks. Miners could load up software on their home computer and mine Bitcoins during the night while sleeping. It was easy to mine Bitcoin because the calculations were not yet as complex and there were more bitcoins available.
This early period was short lived. It soon became unprofitable to run a desktop to do Bitcoin mining. The value of the Bitcoins produced was less than the cost of electricity used to mine the coins. Rapid advances in technology led to standalone Bitcoin mining machines. Since Bitcoin is power and capital intensive, it has now been relegated out of the hands of hobbyists and into the hands of those who can mine it most profitability.
It’s now done in climate-controlled data centers located where expenses are the lowest so that profits can be the highest. If you want to mine Bitcoin, you either need to invest in your own data center or you can invest in an existing mining company. The capital-intensive aspect of mining means that companies need access to capital and are willing to pay more interest than what a typical banking institution will pay. It’s either go big or go home.
Investing in Bitcoin mining is relatively simple. There are many different companies out there doing the mining. You can go with an established company or go with a new startup. Make sure you do your due diligence. Your capital investments allow them to have the state of the art equipment needed to mine Bitcoin most effectively. More Bitcoins produced means that you get an even larger return on your investment.
There is money to be made in Bitcoin mining, but instead of doing it yourself, the real money is investing in Bitcoin cloud mining. It’s an effective use of your money that get you 10% return on your investment in just one month vs. the 0.1% savings interest rate in the traditional banking system. It’s a no-brainer that you should be looking at Bitcoin investments.