Mining Crypto Currency in India – Business Model
Introduction Cryptocurrency based on BlockChain technology like Bitcoin, Ether and technology behind that is making a buzz nowadays.Though it’s a bit late in India it has the good presence in developed countries like USA, UK, Japan. China is also getting a lot in cryptocurrency.Still it’s a best time to start Mining Crypto Currency in India. What is Cryptocurrency? “ A cryptocurrency (or cryptocurrency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency .” Seems difficult to understand, let’s understand in the layman terms, cryptocurrency is nothing but our regular currency like Rs or Dollar which can be used to purchase good and can be exchanged. When we compare the cryptocurrency with our know currency many questions arises. Who issued the currency? The currency like bitcoin was created by Satoshi Nakamoto(Not known whether he is an individual or a group).They defined the rule by which it can be created or exchange. Not its managed by millions of computers by millions of community member. So we can say billions of computers are managing the currency and community members can be termed as the miner. Who is controlling it? No is controlling cryptocurrencies like Monero, Zcash, Ether or Bitcoin. , it’s managed by the community with the millions computer connected in a peer to peer network. How does it look like? It’s not physical, definition itself say’s its digital asset which has value depending on the market demand and supply. How an Individual or Organization holds the currency? Individual or Organization holds the cryptocurrency in the digital wallet created by them. One can open as many wallets as possible. No one is monitoring. Is it legal? Yes, it is. Many countries are using digital currency as a medium of exchange, many countries are planning to launch their own digital currency. China and Russia will be the first as per current news. The major concern is tracing and many governments are working on that. What is Cryptocurrency Mining Let’s start with a simple example of current banking System “ Suppose User “A” wants to transfer the money to User “B” he uses online Banking System to Transfer the funds. Here Bank is the centralized authority that maintains the ledger and confirms the transaction against a small transaction fee.” But in digital coins no one is the central authority, every computer that runs the bitcoin or monero node is the authority and he approves the transaction.So a very small fraction of the transaction amount goes to the computer owner who confirms the transaction. That computer owner is termed as miner and process is called as Crypto Currency Mining. You can also say “Your Powerful Computers are Miners you can decrypt and approve the transaction. Major Investment in Mining around the Globe Just look at the Graph of Bitcoins. You will see in the span of 1 Year bitcoin has jumped from 700 USD to 3600 USD. No investment in the industry can give this kind of returns. With so much demand of bitcoins and another cryptocurrency, many major global companies around the globe are investing in Cryptocurrency Mining to earn a share of their fortune. The best part of cryptocurrency mining is even the smallest player can enter the segment and get his due share for cryptocurrency mining. Let’s Look at Major Companies who invested in Cryptocurrency Mining.(Mark my words they didn’t invest in bitcoin they invested in the Bitcoin mining) “GMO Internet Group a listed company in Japan invested 3 Million in Bitcoin Mining” “China has invested to harness 60% bitcoin mining power.” “GB Miners from India has reached the hashing power of 190 PH/s.” Why Should we Mine Cryptocurrency Crypto currency is the market is growing from 2009. Initial investor earns the huge profit with bitcoin. There are two ways to earn cryptocurrency like Bitcoin, Monero, Ether, Zcash and Dash. To Purchase Crypto Currency from the Exchange Market To Start Mining Keys benefits of Mining Crypto Currency over purchasing them The computer is just the one-time investment and you can mine throughout your life. With a very small investment, you can earn many coins over a long run. Cash required for mining is much much less than what required for Purchasing cryptocurrency. Which are the best currencies to Mine? “Mining Bitcoin is not possible for small miners because of so much competition you require very very strong high configuration machines which may cost in crores(Rs. 10 Million).” There are many currencies which can be mined or purchased. Before purchasing or mining any crypto currencies following thing should be considered. 1. The number of exchanges where the currency is accepted. There are many exchanges like coinbase, localbitcoins, shapeshift etc. 2. Its Popularity, like any stores or online retails where it’s easily accepted and it can be exchanged against bitcoin. 3. Its user base and the number of nodes. On the basis of our analysis, these are major currency which is good to mine depending upon your hash power. and much more… How to Mine Cryptocurrency? We assume you have understood cryptocurrency and mining as well.So let’s see how can we mine Cryptocurrency. 1. Solo Mining Solo Mining requires your own hardware infrastructure and administrative knowledge for installation of Software.Earning in Solo mining takes a lot of times. Block may be found in a day or month or year all depending on how powerful is your hardware and what’s the competition. All the rewards earn in solo mining goes to the owner. 2. Pool Mining Pool mining is like many miners combining their hashing power to form a pool and start mining. Whatever reward is earned is distributed among all the miner via pooling software. Pool Mining ensures the miners get the award on the daily basis and reward is created into their account daily. Get Local Currency from Crypto Currency There are many exchanges where cryptocurrency can be exchanged
