Several misunderstandings that novice mining needs to pay attention to

Several misunderstandings that novice mining needs to pay attention to

The word Bitcoin is famous worldwide, and the reason is that from a few dollars since its inception to more than 20,000 dollars a piece, the rate of return of tens of millions of times kills any investment in the world. However, the temptation is great, and the risks are also significant. The risk comes not from Bitcoin and mining itself but the inventory of funds on the market and the flickering of unknown miners. Next, I will give you a detailed analysis of several significant misunderstandings and pitfalls of Bitcoin mining:

Myth 1: Mining is obtained through electricity.

Many people think that Bitcoin mining is the act of consuming electricity in exchange for Bitcoin. But mining is accounting and calculating mathematical problems, equivalent to each computer being a center. Each mining computer is a bank because countless people keep accounts, and there is no central bookkeeping method, so it is decentralization.

Myth 2: The minimum purchase quantity of Bitcoin is 1, and the price is too high to invest.

When a newcomer sees Bitcoin, an intuitive impression is that it is a shiny golden coin, and then listens to more than 20,000, they will feel that the threshold is extremely high. But Bitcoin can be purchased in divisions, and the current minimum transaction unit of the Bitcoin trading platform is 0.01BTC.

Myth 3: Participate in mining, and you will be able to mine bitcoins. 

In fact, at present, the vast majority of people participating in Bitcoin mining join the mining pool rather than fighting alone. The reason is straightforward, the global total hash rate is vast, the hash rate owned by individuals is minimal, and the odds of digging independently are about the same as winning the lottery jackpot. If you join the mining pool, you will have a daily harvest. You may have no harvest for several years if you mine it yourself.

Myth 4: The bigger the miner's hash rate, the better.

In fact, when choosing a bitcoin miner, although the hash rate is the primary condition, it is not the only condition. It is also necessary to combine the power of the miner itself, the specific electricity price, and the value of the bitcoin itself. These issues will affect the final benefits.

Myth 5: The return period can be calculated through static income.

This issue has been mentioned in previous articles. Participating in Bitcoin mining must not be used to calculate the return period with static income. Many data are not always the same, and due to the continuous increase in the hash rate difficulty, the obtained Profits will gradually decrease.

Myth 6: Once Bitcoins are mined and will not be lost.

In fact, bitcoins can be lost, and they will happen. The bitcoin wallets used to store bitcoins use military-grade encryption, making it impossible for hackers to steal them easily. In addition, the Bitcoin wallet also allows users to set two passwords, a public account password, and a private password. The public account is used for users to receive bitcoins. Users need to use a private password if they want to withdraw or transfer bitcoins. If you forget your private password, you will lose your bitcoins.