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| image source - btc.ng |
Welcome to Redzeeb.com.. Today's episode is all about those crypto currencies that you've been hearing so much about there are a ton of them floating around now. Everyone wants a piece of the pie but the main ones are Bitcoin, litecoin, peercoin, namecoin and dogecoin and cat coin. Actually no I'm just kidding about those last two. They do really exist in fact people are making money on cat coin at the moment. But anyway those four first ones are sort of the more relevant ones. We're gonna give you a rundown about this cryptocurrency thing and what it's all about.
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| image source - mladipodjetnik.com |
So, at the most basic level these crypto currencies are really no different than the money that you have in your wallet. In similar to this money in my wallet it has no intrinsic value. It's just bits of data whereas this is just pieces of paper you can't actually really do much with this other than like throw it in the air like a rap star or like you know strength menacing poses and hold large wads of it or whatever else you want to do. It also bears some similarity to commodities like gold or diamonds though so there's no central bank. That controls it and keeping with that theme of no control like golden diamonds. It can be sent directly from user to user without any credit card companies banks or other intermediaries. Now unlike also similar to gold but unlike the rap status paper you can't just print a bunch of a cryptocurrency. They are actually they need to be mined.
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| image source - CNBC.com |
So, at the heart of Bitcoin for example there is a mathematical problem users solve these problems with high-end computer parts graphics cards are better than CPUs and beyond those are ASIC cards and every time a solution to the problem is found there is a reward given in the form of a Bitcoin. Now the difficulty of this math problem varies with the strength of the network. So, that the solutions are found at regular intervals every 10 minutes on average. The reward also varies or the reward itself also varies except it is tied to a four-year scale which started at 10.5 million coins in the first year and then will have. Now eventually we're going to reach the upper limit of 21 million bitcoins and after that like gold once we run out of it we can't mine more and the theory is that bitcoins will become more expensive as they become more rare and people eventually lose them. I mean once you lose a wallet full of bitcoins those bitcoins are gone forever but don't worry guys there is a saving grace unlike normal currency that can only make smaller denominations like pennies and dollars bitcoins can actually be divided up to eight decimal places so zero point zero zero zero zero zero zero zero one Bitcoin would be the smallest denomination of Bitcoin that's how even with a Bitcoin hovering at you know anywhere between 500 to 1500 dollars Canadian depending on the time of day and you know what's going on out there in the market. You can still just use a fraction of that to pay for a pack of gum for example it's not like oh well do you have changed for $700 for the second no it's not like that now the way that bitcoins are stored is in a virtual wallet which basically keeps a unique record of every single transaction and also allows you to send and receive bitcoins all transactions are also verified by the miners and that record is permanently stored by all members of the network so that means that transactions can take a few minutes in order to complete and verify that it has actually gone through so that is the general idea behind Bitcoin and cryptocurrency is really as a whole but what about all these other crypto currencies. We've mostly talked about Bitcoin so far well there are three main ones litecoin pure coin and named coin like coins are the second biggest cryptocurrency right now with the main advantage. I guess being that they're a lot cheaper they're easier to mine and there are also about four times faster When completing a transaction speaking of them being easier to mine litecoin is also ASIC resistant which means that ASIC cards and machines that are special pieces of hardware that are built simply to mine cryptocurrency faster is not that effective on it. Now speaking of Asics let's talk a little bit about what those are so for for Bitcoin particularly because it's not easy like resistant ASIC cards and machines are special pieces of hardware that are built simply to mine Bitcoin way faster than even the highest end consumer grade hardware. So, to put it in perspective the fastest video card produces between 1 to 2 kilo hash which is the unit of measurement for how quickly you can calculate cryptocurrency. So these dedicated cards compared to one point two kilo hash can produce up to 1,500 Giga hash at power consumptions that are much lower power consumption is one of the major costs of mining bitcoins. Because you have to have the hardware working extremely hard so essentially like coins when I say ASIC resistant it means that they are much harder to make dedicated Hardware for and GPUs graphics cards remain the most efficient way to mine them and that makes them much more accessible than the two thousand plus dollar ASIC Monster dedicated hardware and in addition to that you can actually use your graphics card for other things.
So, it's more for real people normal people now all the other currencies have their unique spin but I won't bog you too much down with all of that. But in summary bitcoins are a virtual currency which like we said it's not really that different from a paper currency this is sort of virtual value as well you can mine them with high-end computer parts or ASIC miners there are a maximum of 21 million bitcoins out there 12 million of which have already been found and all the transactions are publicly and anonymously stored.. Thank you for read this article.. I hope you have learn some things about Cryptocurrency.. Please share this article, It will be helpful for other people..
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