Can You Make a Million with Bitcoins?

Crypto-currency investments are generating a serious amount of interest lately. With reports of Bitcoin values increasing by over 240 times over the last 5 years, it is easy to see why people are starting to take notice of this electronic currency. Bitcoins were worth around $5 each in 2012, whereas now, they are more likely to be valued at over $1,200. Although previous performance is not an absolute guarantee of future results, should Bitcoins increase by another 240 times over the next few years, investors are likely to be sitting on some serious cash.

Of course, no one knows what the future holds for Bitcoins. Although some think it may well be another fad that could bottom out over time, others believe it could also be the beginning of a new era of a new financial landscape because it acts as a currency, voting mechanism, identification, and more. Bitcoins could be the next stage in the evolution of global finances.

Jered Kenna, a former marine who bought his first batch of Bitcoins at just $0.2 per coin and later traded for $258 each, is one of the many people who believe this will be the case. He makes a habit of keeping his net worth a secret, but it is estimated to be around $30 million. Roger Ver, who dropped everything to study the currency when he first learned of it, is another strong believer in Bitcoins, even missing out on a week’s worth of sleep to get up to speed on his new investment. He is now estimated to be worth over $52 million.

The Winklevoss twins also believe in the longevity of Bitcoin currency, having heavily invested in it since it was first launched. A New York Times article claimed that they invested more than $11 million in Bitcoins, making their current net worth over $400 million. The twins also claim to own over 1% of all Bitcoins in circulation.

Obviously, it’s possible to make a million with Bitcoins, but how?

The easiest way to invest in Bitcoins is to set up an account with Coinbase, which will act as your virtual wallet and keep all your Bitcoins safe. Connect this to your bank account, so that you can transfer cash to buy Bitcoins. Simple, right? The prices of Bitcoins have fluctuated widely over the years; however, it does appear to be on an overall upward trend, which means it is a good time to buy.

Another way is to build and manage your own Bitcoin faucet, which is a type of website that gives away free Bitcoins to users. Owners of a Bitcoin faucets make money by placing ads and earning a percentage of the Bitcoins they give away to visitors of the website. It is possible to build a faucet by getting a Bluehost account and installing the Bitcoin faucet with a WordPress plugin.

The most common way to make money through Bitcoins is to become a Bitcoin miner. Mining for Bitcoins involves solving complex algorithms, which, in turn, create blocks that are added to what is known as the public ledger. This is the recorded history of every transaction conducted through Bitcoin. Each time miners create new blocks they are paid in new Bitcoins, which helps to grow the Bitcoin community, as more miners want to earn some of the currency. The downside to this method is that you must invest in a specially built mining rig to be able to cope with the complexity of the algorithms; your home computer just isn’t going to cut it anymore.

If you are familiar with online casinos, you may have noticed that some of them now only deal in Bitcoins. This means that playing a skill-based game, such as poker, could end up landing you a major jackpot in Bitcoins. While this method of creating wealth is a long way from what the the original innovators of the casino first envisaged, it is certainly a quick and easy way to try and boost your Bitcoin investment.

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