Four Ways to Earn Bitcoin

2021 edition 

Image credits Unsplash

Bitcoin or BTC as it is widely known is the first decentralized cryptocurrency and currently the most popular and most valued crypto as well. Most people would love to have a piece of this highly valued cryptocurrency, and in this article, we are going to look at various ways through which one can be able to get a piece of this precious crypto, comparing the advantages and disadvantages of each method.


  1. BlockFi

Image credits BlockFi

BlockFi offers BTC rewards through their BlockFi Interest Account (BIA) which is the world’s first compound interest cryptocurrency savings account. BIA works in the same way the compound interest principle is used by traditional financial services but the only difference here is that if you keep BTC in your BIA account, you will get more BTC in your account from the compound interest. The amount of BTC one earns will be proportional to the BTC deposited and the annual interest is as follows, 

  • 6% in annual interest on Bitcoin deposits up to 5 BTC

  • 3.2% in annual interest on Bitcoin deposits over 5 BTC

Now let us take an example of how much 1 BTC would earn you in one year

The formula is as follows 

A=P(1+r/n)^nt

Where 

A - final amount

P - initial principal amount

r - interest rate

n - number of times interest applied per time period

t - number of time periods elapsed

Assuming the interest to be 6% per annum, 1 BTC would be

A=P(1+r/n)^nt

A=1(1+0.061)^1

    = 1.006 BTC

For example, if you have 0.01 BTC (worth $544.15 as of 30 April 2021), you will be able to earn 0.0006 BTC ( worth $3.26 as of 30 April 2020) and this would be way more than what most savings accounts give as interest per year (in the US the highest-paying savings account pays 0.61% APY). This means that if you’re someone who is hodling BTC, this would be a good way to do so since the BTC would grow over time.


  1. Stacking STX

Image Credits stacks.co

Through Stacking the STX token, one can enjoy BTC rewards through the Proof Of Transfer (PoX) protocol through which holders of the STX token can lock up their tokens for a certain period ranging from 1 cycle (roughly 14 days) to 12 cycles (roughly 6 months) and the APY normally ranges from 9-15% depending on several factors such as the price of STX, and the price of BTC at that time. 

More details on how Stacking works can be found in this article I wrote. In brief, there are several ways in which you can participate in Stacking and these include delegated non-custodial Stacking, delegated custodial Stacking, and also Stacking on your own if you can meet the required minimum.

  1.  Premise App 

Image credits Premise Data

If you have some spare time, you can earn BTC from doing several tasks, which include surveys and taking pictures on the Premise app which pays you a minimum of US$5.00 in BTC. The Premise app works by collecting some data from contributors and uses this data to better inform businesses on what the market wants. This could be a good way to pass time while you earn, though some may have concerns about the data that is shared and privacy concerns. The Premise app pays in BTC to Coinbase wallets and this can then be used as one pleases. 


  1. BTC Mining

Image Credits Dmitry Demidko on Unsplash

Borrowing the name from the traditional way of extracting minerals from the earth’s core, BTC mining is defined by Investopedia as the process of creating new Bitcoin by solving a computational puzzle. This process requires very powerful computers and hence consumes large amounts of power since these computers would also require cooling systems to be able to function properly. 

Also of note is that since the latest halving from May 2020, which has seen rewards per block going down from 13  BTC to 6.25 BTC per block means that for one to be profitable in mining BTC,  he/she must be a very big miner, investing a lot into powerful computers which may prove very hard for the average person.

The way miners earn Bitcoin is through a protocol called Proof of Work whereby miners are rewarded for the work they do in processing transactions and these rewards are halved after every 210,000 blocks and this is shown in the picture below.

Image Credits Investopedia


A little comparison

Below is a brief comparison of the different methods of earning BTC that are discussed above.



*BTC yields from BTC mining are very low and it is not profitable for smaller miners.

Overall, in terms of all the categories above, you can see that Stacking takes the crown as the best way to earn BTC though other ways such as Blockfi’s BIA are also very good ways to earn BTC. 

Please let me know your thoughts on how to earn BTC, and also feel free to share other ways people can use to earn BTC in the comments below 😄.



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