In met by many setbacks. Too many people who

In 2013, twin brothers Tyler and Cameron Winklevoss invested $11 million worth of bitcoins. Last year, the brothers confirmed that their investment had accrued more than a billion dollars in a span of four years. While the Winklevoss brothers are believed to be the most famous bitcoin investors, there are thousands of people who make a living out of bitcoin every day.What gives Bitcoin Value?Bitcoin refers to two things:A digital payment network, just like visa or PayPal.A currency like the US dollars.Bitcoin is, however, different both in terms of being a payment network and as a currency. Here is how:The bitcoin payment network is decentralized and not managed by a centralized organization or government. Bitcoin follows a peer to peer way of checking its financial records in a system known as the blockchain.The bitcoin currency is intangible.Like every other currency, the value of bitcoin is guided by the law of supply and demand. In 2009 when the bitcoin network was launched, the value for bitcoins was less than a dollar. There was no demand for the coins. However, bitcoin had a network that offered improved services compared to regular payment networks. Bitcoin promised improved speeds when completing payment transactions. They also offered advanced security and convenience. Bitcoin’s unique services attracted media attention. Tech enthusiasts joined the bitcoin community, leading to increased value in the bitcoin. As the bitcoin community grew, the value for bitcoins increased. However, the currency’s sporadic growth was met by many setbacks. Too many people who bought the coins and found little use in them would just sell them. Due to this, bitcoin’s value would rise and fall inconsistently-sometimes falling by up to 80%. Can you Earn Money with Bitcoin?Bitcoin’s sporadic adoption around the world means that its value rises at a much higher rate than any other currency. In 2009, bitcoin’s value was worth $0. When people became interested in the coin, the value rose to $1 by 2011. In 2013, the coin’s value was worth $800.In 2015, the coin’s value ended at a low $430.By end of 2016, the coin’s value was $850.By end of 2017, the coin’s value was nearly $20,000.Based on the above statistics alone, people who invested $1,000 worth of bitcoins at the beginning of January 2017 earned nearly 20 times their investment in just that one year. There are multiple factors that have influenced bitcoin’s fast growth. But what’s important to investors is that they can earn money with bitcoin. Here are 5 main ways to earn bitcoins.Bitcoin TradingBitcoin trading refers to buying coins when their value is low and selling them when the value increases. It’s a simple idea that is easy to understand and implement. Cryptocurrency trading is the most popular way to make money through bitcoins. If you choose this method:Do a lot of research about bitcoinsLook for a secure bitcoin wallet (the platform where your store your coins)Keep close tabs on the bitcoin network-Learn more here.AdvantagesPotential to make a lot of money with little effort.Easy to start and maintain the investment.There are tons of cryptocurrencies you can invest in.ConsRequires that you keep track of the bitcoin network regularly.You can lose all of your investment should anything happen to your bitcoin wallet.Mine BitcoinsMining bitcoins refers to the process of validating bitcoin transactions so that they can be added on the blockchain. The blockchain is bitcoin’s decentralized financial system. The blockchain records all transactions made on the network throughout history. Here are basic ideas about mining:Mining is a peer to peer computer process that helps validate bitcoin transactionsEach set of bitcoins is called a block.Blocks are interlinked and secured.The blockchain helps prevent users double spend.Mining is designed to be difficult so that there is a finite amount of coins in the world.Most miners work as teams to complete a blockchain.Mining is the process through which new bitcoins are introduced into the market.Advantages of MiningMiners are paid in actual bitcoins-currently the reward for completing a blockchain is 12.5 bitcoins.Mining with the most advanced mining machines is easy.There are fewer risks compared to trading.ConsMining is capital intensive- the cost for average bitcoin mining machines is $3000.The reward for mining bitcoins is halved every four years.The process of mining is made difficult as more people become miners.Affiliate ProgramsAffiliate programs allow people to earn bitcoins by pushing traffic to a specific bitcoin related program. The coinbase affiliate program for example,  lets you refer people to the network and get paid $10 every time your referrals make a transaction worth $100 or higher. Coinbase is one the most respected bitcoin exchange platforms. There are plenty other bitcoin affiliated programs that work in the same manner.Advantages You make more bitcoins based on your efforts.There are many legitimate bitcoin affiliate programs.ConsGetting people to complete bitcoin transactions through your links is a lot of hard work.Money FaucetsMoney faucets are websites that give you bitcoins in exchange for doing little tasks on their website. You fill a survey, for example, and you are paid in bitcoins. You watch an advert or enter the captcha and you get a small fraction of bitcoin. Money faucets are not very rewarding, unfortunately.AdvantagesAnyone can earn bitcoins on money faucet websites.Easy to complete tasks on money faucet websites.ConsMost money faucets are scamsBitcoins offered in money faucets are basically pennies.Bitcoin LendingYou can lend bitcoin to someone or an organization that needs them in exchange for accrued interest after some time. Lending bitcoins on trusted bitcoin lending sites is a safe way to earn bitcoins. Do research and only lend to an organization that can prove to giveback your coins in interest.AdvantagesYou are certain that your bitcoins will gain value when you lend to a trusted organization.Provides a steady stream of income.Fewer risks compared to trading.ConsThere is a high risk of getting scammed.ConclusionAs bitcoin adoption increases, its value will rise. This means that there is a potential to become rich by investing in bitcoins. Do research and know which method above best suits you. Spare sometime and start earning bitcoins!

x

Hi!
I'm Dianna!

Would you like to get a custom essay? How about receiving a customized one?

Check it out