Buying Guide to Bitcoin Mining Contracts
Those who wish to join the growing cryptocurrency marketplace can purchase Bitcoin mining contracts on eBay to make the process more accessible to them. On eBay, there is a large selection of Bitcoin mining contracts all available in a centralized location.What are some Bitcoin mining contracts available?
Some of the miners that offer contracts may include:
- Genesis Mining
Bitcoin is an alternate system of currency that functions as electronic cash. It is a means of transferring funds between parties in a decentralized manner. A Bitcoin is a unit of currency in this system. It is built off of a blockchain, and each block is added to the chain. These coins have a value to them and the Bitcoin price has risen dramatically since the cryptocurrency was introduced in 2009. There is a fixed amount of the coins that are available. Specifically, there is a limit of 21 million coins that are available. Unlike a stock in a company, not all of the coins were distributed when the cryptocurrency was created.Why do the coins need to be mined?
There is a limited supply of these coins in existence. In other words, new coins cannot be minted in the same manner that a central bank prints money. Instead, people receive coins for solving certain math problems in a process known as mining. This is the way that people can get their share of the 21 million coins that are available. This process results in the adding of records of a new transaction to the blockchain. The coins are essentially their reward for adding to the blockchain. This process requires computing power and special software. It also requires electricity to harness the hardware. At a certain point, all of the coins will have been claimed. Until that point, there is a competition to get as many of the coins as possible.What is a Bitcoin mining contract?
Think of these coins as a limited resource that people are competing to access. A Bitcoin mining contract is essentially the same as renting an oil rig to drill for oil. Many people do not have the necessary setup to engage in mining. When you buy a Bitcoin mining contract, you pay the other party a fixed amount at the outset. You are promised a certain hash rate that is put to work for you for a fixed period of time. There are contracts that can be as short as a day, while others are longer term lasting several years. When you purchase a mining contract, you receive whatever cryptocurrency that is mined during the course of the contract. Essentially, you are renting the hardware to do the work for you and then you can reap the benefits of the mining process that was conducted on your behalf.