So I was sitting with some friends at my university, and one of them mentioned he planned to deploy his mining station. “Mining station?” I asked. “Yes, mining station for the cryptocurrency.” I was fascinated by the idea, so I did some research. What I found rendered me speechless.
There are multiple electronic currencies around the internet, the most popular of which is Bitcoin.
And here is the astonishing part: seven years ago, one Bitcoin was worth 0.003 cents. Now one bitcoin is worth 5320 USD (12th oct 2017).
1 usd would have gotten you 333 Bitcoins 7 years back.
That amounts to 1’771’560 USD now
Yessssss!!!!!!! I know. This is super extra extra extra crazy.
How do you get Bitcoin?
Well, the process is relatively complicated, but an overview would be: you compute transactions through your machinery and the system awards you little amounts of bitcoin for each transaction processed. This is known as mining. Now note that bitcoin does not have a centralised system. A lot of small machines all over the world are computing the transactions. Making the system near impossible to hack or temper. Each account processing for the system has a unique ID which receives the payment. Your payment is deposited in bitcoin wallets from which you can conduct transactions and withdrawals. An important thing to explain is machines which run the transactions are electrical; computers and GPUs (Graphics Processing Units). They obviously run on electricity. Places which provide cheap and uninterrupted power are ideal for mining setups. There are many companies and installations which mine bitcoin and offer various bitcoin-related services.
Or you can simply exchange $5320 (5 lakh 58 thousand and 6 hundred PKR) for one bitcoin from some bitcoin exchange or online. You will have to wait for it to go up so you can make a profit from it. INSANE isn’t it?
Reason of Bitcoin success
The reason why bitcoin is so successful is due to its security and privacy. Anyone, anywhere, with access to the internet can send and receive money through bitcoin, and no one will be able to track the payment. This makes bitcoin excellent for private transactions. This offers great comfort and greater malevolence. With no restrictions and no surveillance, the black market has flourished. The results, as you can see, are astonishing.
The value of bitcoin has increased 177’333’333% in seven years.
Just to help you digest that, it is more than 177 MILLION percent increase in 7 years.
Bitcoin is not the only cryptocurrency in play. Ethereum, developed by Vitalik Buterin, is promising, currently valued at 330 USD. However, Ethereum is so much more than a mere electronic currency, the explanation of which is easily available via google.
What does Twitter have to say about it
— Joseph Young (@iamjosephyoung) October 10, 2017
— Blockchainlife (@Blockchainlife) October 10, 2017
— Risat (@Risat07) October 10, 2017
— GbrilliantQ™ (@GbrilliantQ) October 10, 2017
Security and privacy for stability
The only bad thing about these cryptocurrencies is that they are unstable because they are unsupervised and unmaintained by any country or system other than its own.
Or is it really a bad thing?
Feature Image via Jason Benjamin