BITCOIN MINING

WHAT IS BITCOIN MINING??

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.

Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.(source: wiki)

IS BITCOIN MINING PROFITABLE?? (personal view)

There is huge debate that if bitcoin mining is profitable or not. Due to continuously rising of price of bitcoins, the investment seems to recover but in actual due to highly volatile pricing of bitcoin no one can predict its actual loss or profit. The expense in mining pool charge, difficulty, etc. increases the ROI, which is quite annoying. 

                                                Question arises that, is it is profitable with time and other bitcoin businesses?? My direct answer is no. For the long run it may seem profitable but you can't withdraw prepaid mining charge when in need. You can't sell your bitcoin unless it is produced, unlikely if u invest same amount of money in trading bitcoin or any cryptocurrency, There is high possibility of greater profit and also you have control to sell it whenever required. 

CONCLUSION:

If you have enough money and you are sure you don't need it soon, you can go for bitcoin mining. But if condition is not same its better to go for bitcoin trading. You can sell it in it's peak price and buy it again when it price goes down, which will provide more time value of money than that of bitcoin mining also the possibility of amount of bitcoin you will have after the mining period is greater  in trading than that of  bitcoin mining