Bitcoin Mining Pools Vs. Traditional Investing: 11 Great Reasons to Invest In Decentralized Currency


Bitcoin Mining Pools Vs. Traditional Investing: 11 Great Reasons to Invest In Decentralized Currency

Bitcoin mining has made itself known and greatly impacted how we conceive what investing is and what makes a profitable investment.

The history of investing goes as far as the early 17th century when the Amsterdam Stock Exchange was established as the first modern stock exchange. Trading was exclusive to only wealthy merchants and brokers. Nonetheless, over time, this exclusive enterprise became more accessible and spread throughout the world.

Stocks became the default investment strategy for the average man, so he could build wealth over the long term. Then, only in 2009, crypto came onto everyone’s purview.

Though, before people started investing in crypto, “it [Dogecoin] was a literal joke,” said Randi Hipper, an 18-year-old influencer known as Miss Teen Crypto, in a late 2021 conversation with CoinDesk. It wasn’t until Tesla CEO Elon Musk started tweeting about it that “it got serious.”

What further sparked interest in cryptocurrency was billionaire entrepreneur Mark Cuban (4.5B networth) accepting DOGE for payment of the Dallas Mavericks. Today, cryptocurrency also makes up 80% of his investment portfolio. The reason behind Cuban’s avid involvement in the decentralized currency makes sense, though. In a tweet from May of this year, Cuban compared crypto to the early days of the internet, “crypto is going through the lull that the internet went through.”

He since followed that up by speaking on the emergence of crypto’s smart contracts (IBM on smart contracts: “programs used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss”) and how they’ll improve business management and profitability.

To learn more about why billionaire entrepreneurs are getting involved in the world of decentralized currency, continue reading below:

The Inevitable Profits of Bitcoin Mining Pools

There are very few things that are lackluster about cryptocurrency. However, one of the few uninspiring parts is Bitcoin mining, an intensely difficult task that sees very little in rewards compared to the effort expended.

Still, despite, the complications of mining Bitcoin, there does seem to be an easy and increasingly valuable solution, mining pools. Mining pools are a joint task force of two or more crypto enthusiasts using their joint computational forces to increase the profitability of mining crypto and later split the profits.

1. It’s Easy To Get Involved

While the concept behind crypto may seem a bit niche, investing in this and other forms of cryptocurrency is quite simple. However, there are a few rules of thumb you should keep in mind before investing. First, as you begin investing, crypto should only be a small portion of your investment portfolio. Second, there are several types of altcoins, so do your research before choosing the one you want to bet on. Lastly, though cryptocurrency has remarkable returns, it is notoriously volatile, so expect and prepare for dips in crypto stocks every so often.

2. Diversify Your Portfolio

Speaking of diversifying your portfolio, Bitcoin offers you an advantage not seen in the traditional marketplace. For instance, when worldwide events disrupt the stock trends or when inflation decreases the value of the dollar, cryptocurrencies will be largely unaffected.

Thus, including Bitcoin in your investment portfolio protects you from the ever-fluctuating financial marketplace of centralized currency.

3. The Increasing Value of Bitcoin

In August of 2012, a single Bitcoin was valued at $112. While, at the time of writing this (May 31, 2022), a single Bitcoin is valued at an estimated $32,000. As Bitcoin continues to advance and become more accessible to the layman, the intrinsic value of the coin will continue to grow while being largely unaffected by traditional, centralized financial trends.

4. The Security of Decentralized Currency

The technology backing the blockchain ledger is inherently secure due to the decentralized (i.e. public) nature of transactions, in addition to the encryption process every transaction undergoes.

5. Enjoy a Tremendous Return on Your Investment

With the aforementioned increasing value of crypto, you have the opportunity to make thousands of dollars in the months to come at a modest cost right now if you were to get involved in cryptocurrency.

6. The Growing Usage of Crypto Worldwide

Both online and brick-and-mortar establishments accept cryptocurrency as a legitimate form of cash. Thus, it is now possible to walk into a store and purchase actual goods with currency backed solely through consensus-based transactions. Nonetheless, with the growing trend of establishments supporting cryptocurrency, this decentralized currency is starting to gain actual, real-world value.

7. Discover Transparency in Your Transactions

Because cryptocurrency exists on a publicly distributed ledger, transactions can’t be altered; there are fewer chances of risky investments due to internal manipulation (e.g., falsifying data) often seen in traditional trading.

8. Crypto is Becoming Integral to Fundamental Infrastructure of The Finance Industry

Cryptocurrencies are not only gaining real-world value through merchant enterprises, but entire nations are also adopting them. As of 2021 and 2022, respectively, El Salvador and The Central African Republic have begun to recognize cryptocurrency as official currency.

While during the war with Russia, The Ministry of Digital Transformation of Ukraine has taken to accept donations through 14 types of cryptocurrencies, “Crypto really helped during the first few days because we were able to cover some immediate needs,” says Alex Bornyakov, one of Ukraine’s deputy ministers for digital transformation.”

9. Protect Your Funds From Inflation

Because cryptocurrencies are decentralized and have a cap on supply (21.000. 000 units), they cannot be affected by inflation in a traditional sense. Instead, cryptocurrencies have the potential to earn more in returns than the speed at which the dollar loses value over time.

10. Support and Benefit From Innovation

As using cryptocurrencies become a part of the mainstream, the project that Satoshi Nakamoto first started in 2008 gains evidence of its legitimacy. At the same time, the growth in the use of crypto over time enables it to innovate further and evolve into a better version of itself.

11. The Blockchain is Here To Stay

You may be thinking that it’s too late to get involved in Bitcoin and other cryptocurrencies. However, as the blockchain continues to braid itself into the financial marketplace, there will never be a better time than now, tomorrow, or even months and years from now to get involved in this decentralized currency.

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