Welcome to NCIX tech tips 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 so at the most basic level these cryptocurrencies 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 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 gold and 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 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 gonna 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 1,500 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 change 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.
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 a SiC 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 the hardware working extremely hard so essentially light 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 much more accessible than the 2,000 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 blog you too much down with all of that just check out the description to learn more about them 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 now stay tuned tomorrow guys because we are going to go over exactly how to build a Bitcoin mining rig if this little.
Video here has piqued your interest what you might need and we’re gonna show off wheels is Frankenstein system that is hard at work right now mining in the next room.