An online Bitcoin generator?
Crypto fans and followers of the most famous cryptocurrency, Bitcoin, keep stumbling on online references to the term “Bitcoin Generator”. The word suggests that this is a machine that generates Bitcoins. There are some websites that use the term or use it as a keyword. This works – because users click on it and end up reading the content of the site.
However, the dream of being able to get a few Bitcoins every day from a vending machine is far from any reality. There are still only two ways to gain ownership of Bitcoins – interested parties must either buy them or participate in the mining of Bitcoins.
Of course, you can buy Bitcoins at a Bitcoin ATM. You do have to exchange real money for the digital currency, so it certainly isn’t free.
Website owners who use the buzzword “Bitcoin Generator” are primarily motivated at getting customers for specific purposes. This can be a monthly subscription to a gambling site or an email newsletter with advertising.
Nobody is about to give away Bitcoins, and if someone does give away Bitcoins, it is never without asking for anything in return. Mining is one example. Looking at the entire process, one can speak of a Bitcoin generator in these terms.
Bitcoin generator – mining as a production machine
Seeing mining as a production machine for Bitcoins is true, even on a technical level. This is because every mining farm uses machines that run around the clock. These are purpose-built computers that solve complex computational processes to generate Bitcoins.
These are distributed as a reward to the participants. As this is a recurrent process every day, there is also a daily distribution. A mining farm is, therefore, a production facility for Bitcoins. Real Bitcoins are generated here, while gambling websites only promise Bitcoins.
In the past, it was still possible for individuals to run a Bitcoin generator (also called a miner) at home. However, the process requirements have grown enormously and the electricity costs are now so high that a single computer wouldn’t be worthwhile anymore.
Mining must be done on a grand scale to be lucrative. That’s why mining farms are big companies that have the financial power to maintain them.
The Bitcoin generators need to be cooled and maintained around the clock to ensure their functionality. Even factors such as emergency power generators and exceptional situations (such as natural disasters) have to be considered by operators. If you own a mining farm, you can look forward to daily Bitcoin returns and great investor interest.
How does this Bitcoin generator work?
With a share of Bitcoins being distributed as profit every day, the mining concept is highly attractive to investors. They can participate in the manufacturing process by purchasing computing power. For a certain period, they are entitled to contractually guaranteed computing power that generates Bitcoins.
The runtime and the hash rate are set. The higher the investment, the higher the hash rate (computing power) that the investor receives. The hash rate decides the amount of the daily Bitcoin distribution.
At the beginning, investors have to invest a certain amount. With mining pools for private individuals, participation in mining is possible from small, three-digit amounts. However, the majority of mining pools worldwide are accessible only after millions of euros of investment.
Depending on the price development of Bitcoins and amount of daily payment, the break-even point is reached after a few months. It can, however, take six months to a whole year. A contractual guarantee does not exist, since the break-even point depends strongly on the price development.
As soon as the total value of the daily distributions passes the value of the initial investment, the profit phase begins. The mining constantly generates new Bitcoins, with which you can now earn real money.
Some mining vendors offer Lifetime Mining to their customers. This means that the contract is unlimited. In theory, you’ll get distributed Bitcoins for the rest of your life. In practice, however, this is becoming increasingly unattractive over time, as the devices become technically outdated, so the yield will decrease over time.
Bitcoin generator – conclusion
A Bitcoin generator, in the sense of a machine that spits out Bitcoins without any limits, does not exist. Websites advertising this term do so only to attract customers to their businesses (e.g. gambling). However, the pages are still sure to attract high hit rates, as Bitcoin is still the most popular cryptocurrency on the web.
There are vending machines where you can exchange fiat money for Bitcoins. However, this is a simple barter and does not constitute a true Bitcoin generator.
Mining, however, can actually be spoken of as a manufacturing process. If you invest in mining, you are buying computing power. The computing power of special computers ensures that Bitcoins are generated each day. Shares of these get to investors as distributed profits.
In order to enjoy profits offered by the production machine, the initial investment must be balanced out first. This may take a while, depending on the purchased package. Then, however, the daily dividends represent net profit.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.