(Classroom) All about Bitcoin

What’s with Bitcoin and Bitcoin Mining? Can you really earn real money from it?

BIOSTAR Blog is back with another classroom post to tell us more about this intriguing topic, and simplify it so anyone like you and I will be able to easily understand.

Before we even head into the mechanics of Bitcoin Mining, we first need an answer to the multi-million dollar question:

WHAT is Bitcoin?

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According to Wikipedia, Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto, who published the invention in 2008 and released it as open-source software in 2009. The system is peer-to-peer and transactions take place between users directly, without an intermediary.

So if you’re anything like yours truly, you should be feeling something like this:

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Thankfully, I have this precious resource called Google who was helpful enough to provide what I needed…

Just kidding! Thankfully, I had many knowledgable colleagues who were kind enough to offer some of their insights about Bitcoin and Bitcoin Mining, to which I have decided to compile their knowledge and information into this much more easily understandable version!

Essentially, Bitcoin is a form of digital currency that is created and held electronically. Bitcoins aren’t printed like regular dollars that we use on a daily basis. Rather, Bitcoins are produced by people all around the world by using software that solves mathematical problems.

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So this software is invented by this guy under the pseudonym of Satoshi Nakamoto where people can perform transactions with one another freely and anonymously across the Bitcoin network! I think it sounds pretty damn cool, especially for costly transactions where you don’t wanna leave your personal information behind to any potential malicious-intent individuals.

Bitcoin the first example of a growing category of money known as cryptocurrency, which is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

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In fact, the value of Bitcoin has been steadily increasing over the years and is projected to continue increasing in the future.

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(NOTE: This data is correct at the time of writing)

(Image courtesy of xe.com)

 

Alright, so now that you know what’s Bitcoin so the next question would be: how do you earn Bitcoins? To answer that, you need to first know about Bitcoin Mining!

WHAT is Bitcoin Mining?

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(Image courtesy of coindesk.com)

With increasing popularity of Bitcoins, people are sending Bitcoins to each other over the Bitcoin network all the time, but unless someone keeps a record of all these transactions, no-one would be able to keep track of who had paid what (due to its anonymous nature). The Bitcoin network collects all of the transactions made during a set period into a list called a ‘block’. It’s the miners’ job to confirm those transactions, and write them into a general ledger, which is a long list of blocks called a ‘blockchain’.

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Due to the ever increasingly lengthy list of transactions, it is necessary to shorten the data of the blockchain into something else known as a ‘hash’ which has to meet a set of specific requirements to be accepted.

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(Image courtesy of The Economist)

Each time a miner confirms a transaction and “seals off” the block (by creating a hash), they will get a reward of Bitcoins. The catch is that they are competing with other miners all around the world to do this and the Bitcoins will only be rewarded to the fastest miner that created that hash.

 

Okay… So now, to answer the next question:

HOW do you mine for Bitcoin?

In order to begin mining for Bitcoins, you will first have to build a mining rig. While there are many other alternatives, we will only be mentioning one of the ways, which is to build a CPU/GPU Mining Rig.

There should be two main points of consideration when selecting your hardware will be its hash rate and its return on investment (ROI) rate.

In CPU/GPU Mining, your computer will be your mining rig. While it is theoretically possible to use your computer’s CPU to mine for bitcoins, this would be too slow by today’s standards that there isn’t any point. However, you can enhance your bitcoin hash rate by adding graphics cards since they feature graphical processing units (GPUs), which are designed for heavy mathematical lifting to calculate all the complex polygons in high-end video games. This makes them particularly good at the SHA hashing mathematics necessary to solve transaction blocks.

 

Alright, so we need a computer and some graphic cards!

Which board should I go for? WHY BIOSTAR TB85?

Of all the available alternatives out there, it can be baffling to select the perfect hardware to suit your mining needs AND be budget-friendly at the same time which has a great effect on your ROI. At BIOSTAR, we believe in providing the best value-for-money products to be accessible to the average user.

The budget-friendly BIOSTAR TB85 is great news for every miner since this means that a much lower amount spent into building your rig. Ergo, you have a faster rate of ROI.

Furthermore, with 6 PCI-E slots, the BIOSTAR TB85 is the ideal choice for Bitcoin Mining since users can load all 6 slots at the same time for optimal performance. This equates to a much higher hash-rate and thus a much shorter time before you break even from your original investment and start earning money!

To top that off, the BIOSTAR TB85 features 100% Solid Capacitors to ensure longer longevity, greater durability and higher stability of your board. This ensures that your initial investment will give you the most bang for your buck since you won’t have to keep replacing your equipment since it is crucial in Bitcoin mining that your system is always stable 24/7.

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Don’t settle for less, get the most bang out of your buck with the BIOSTAR TB85 Motherboard and start raking in the Bitcoins. We’re sure that its a choice you won’t regret! 😉

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