Bitcoin has been around for more than a decade now, but it is still relatively new, not only for individuals but for entire countries and their governments. The complexion behind it prevents people from taking it as something regular, but instead view it as a mythical occurrence. While BTC has a side to it that’s hard to understand for a layman, it is something that can be comprehended if you know just a little bit about technology, finances, cryptography, and networks. Internet is available to all of us, so there are no excuses for not getting educated on this subject. Because Bitcoin is viewed as something mythical, there are many misconceptions regarding it circling the web. In this article, we’re going to discuss four Bitcoin mining misconceptions all beginners think are right. If you have prejudices regarding digital currencies, keep on reading, and we’re sure you’ll lose some of them.
Mining BTC is Illegal
Where to start with this one? There are just too many misconceptions tied to Bitcoin illegality. You should know that it is not illegal. It would be hard to enforce any law that would make it so. Even if it is possible, there’s no such law in power as of now. We say that it’s going to be hard to confine BTC and other cryptocurrencies this way, as they’re not tied to any country or governing body.
What’s true is that there are countries that have not taken a liking to crypto. These countries made a stupid move, if you ask us, and banned BTC and similar currencies. If you want to know what backward countries are these, here is the list: Algeria, Bolivia, Ecuador, Bangladesh, Nepal, and Macedonia. There’s probably more, but we shouldn’t deal with them. The laws that are pointed against cryptocurrency mining and trading usually are put into the group of anti-money laundering legislation.
Many countries accepted BTC and jobs revolving around it but have put specific rules in power. For example, China and Korea restrict ICOs. Indonesia allows trading but outright buying with crypto. In the United States, there’s still an ongoing debate going on regarding Bitcoin. They’re in the blank space between commodities and securities. While there’s still a jury on BTC, it’s not illegal as people deem it to be. It’s nowhere close.
Mining Is Bad For Your Computer
Yes, mining can influence your computer. Mining requires your CPU to be at 100% at all times, and this is something that affects the hardware. But, it is influenced the same way when you are playing games or are running any other process that hits the graphics card. But, this is no big deal, as computers are made to be working hard. Also, some people would argue that it is better to have the fans working non-stop than having them in go-stop mode while playing Skyrim.
If you opt to use your machine for mining, all you need is proper maintenance. This includes a heat sink on a regular basis and a couple of spare fans on the side. If you do this, there’s no reason why your GPU won’t last a couple of years. All you need to do is to pay attention to super-high temperatures. Going hot for processors is not what you want. Heat is what kills the GPU fastest. Adequate ventilation and dust-free space are some of the prerequisites for successful mining.
Price of BTC Depends on The Price of Electricity
We heard crazier tales. How about you? Maybe not. This misconception is quite often, but it does not hold water. Cryptocurrency is a speculative asset, and its value can’t be determined by a factor as simple as the cost of electric power. What’s true is that sometimes the amount of BTC you mind won’t cover the cost of electric power you spent. His is bad luck, but it doesn’t justify the belief we stated above.
The BTC network is complicated. If you are running an inefficient mining program, you can’t hope for good results. The crypto puzzles that need solving are tricky, and they require power to be solved. You can’t expect to spend one standard electric bill on thousands of dollars worth of BTC coin. In the beginning, this crypto’s value was tied to the amount of the cost to mine a block. But, these times are far behind us, and this misconception needs to disappear.
There’s Only 21 Million BTC Coins And Mining Will Stop When all are Mined
It has been stated long ago that there are only 21 million Bitcoins available to mine. People have been long wondering what will happen when all of them are mined out in the open. Will there be a need for products such as those kagay-an.com offers? Miners have been afraid that they’ll be left out of business. Fear not, none of this is going to happen.
When this happens, the miners are going to reap their benefits only from transactions. While there will be BTC transactions when this happens, the question that remains is if this activity is going to be enough to finance the entire system. It’s hard to tell what the future holds, as there could be decades before this happens. Both society and technology could advance to the extent where it all can be maintained with ease. It is possible that mining would become history in a couple of years or longer, but it could also be replaced with something else. It’s hard to predict this today.
If you’re new to mining, don’t be too worried, as most information you’ll encounter is going to be misconceptions. What you need to do is to better educate yourself on the subject of mining, with articles such as this one. If you do so, you’ll start with the mining process straight away, as there are no reasons why you shouldn’t. Considering the slow growth most new cryptocurrencies experience, it’s only time when one will become popular enough so that people mine it even more than BTC.