Bitcoin Mining are their any risk ?

Bitcoin and the risk associated with mining it?

Bitcoin is a cryptocurrency and worldwide payment system.3 It is the first decentralized digital currency, as the system works without a central bank or single administrator.The network is peer-to-peer and transactions take place between users directly, without an intermediary.4 These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009. With is first starting price of  $0.08 dollars bitcoin shockingly increased to 11174.45 (January/2018). Bitcoins are now white gold.Buying a bitcoin is much expensive than the only way to get it is mine it.Every advantage has also disadvantages and here are some disadvantages of bitcoin mining.

1.Susceptible to High Price Volatility:

The main issue that comes with bitcoin mining is the fluctuation of the virtual currency. The cryptocurrency tends to swing over short periods of time. Also, the price depends on the demand and supply, since there are only 21 million Bitcoins available and with two-thirds of it to be already mined, the demand of bitcoins increases with each passing day.

2.Competition due to the introduction of Ethereum:

The reward for mining bitcoins about every four years and its current value is at 12.5 bitcoins, with average block time as 10 minutes. Whereas Ethereum block time is 12 seconds. Faster block time means quicker confirmation of transactions. Ethereum reward miners work to earn Ethers, which is a kind of token that fuels the network. You earn 5 ethers given for each block. You can also use it to pay for transaction fee and services on the Ethereum network. Also, Ethereum has over 89,752,192 coins currently existing, unlike Bitcoin, if it reaches its limit, more investors would switch to Ethereum or other cryptocurrencies thus, leading to lesser or no transactions for miners to confirm and earn rewards.

3.The “hard fork” scenario:

Bitcoin has become so popular that it isn’t able to manage the weight of all the transactions. With the currency growing exponentially along with the number of transactions, the 1MB block size limit is starting to be an issue thus, leading to delays in payment processing. This hard fork is splitting the network into two i.e. Bitcoin Unlimited (BU) and Segregated Witness (SegWit). Miners are in favor of BU as it gives them more control of the BTC network but BTC developers and enthusiasts choose to side with SegWit since they’re not in favor of letting miners be more in control of the network than they already are. The two obviously can’t co-exist side by side so they have to compete for legitimacy and users in order to function.

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