The Chain logo

Satoshi the ninjas

by Waldo Yamada about a year ago in bitcoin
Report Story

The bitcoin craze that hipsters love.

I started learning about bitcoin when I was Googling about cryptocurrency. I remember that year very well. It was around April of 2016 when I looked at the value and saw that it was about 1000.00 USD per bitcoin. So, I did my best and researched what it was all about. I bought one Bitmain miner that hashed about 25 cents a day and I was amazed about the hardware and the software set-up.

I kept researching to find out who made this reward by transaction system. From what I know, it is a team of programmers who created this system of decentralized currency that is fluid in every platform such as computers or atm.

Cryptocurrency technology is based on a decentralized method of award by transaction. The algorithm; which is a common rumour, is that the founders of Bitcoin hid locations of different gold treasures around the world and the location for each gold pot is found by having to hash through information to find the location. I think this was a legend story that the Satoshi or Satoshis created. So the reason the reward by the transaction is that if you can hash through the internet information to find the right location of where the gold pot is. You get rewarded for finding the information. That record of reward is logged and shared to other computers to log it as well. Which in turn, they get a reward for logging that information and that started the internet version of being paid for being the recorder or teller for finding the information.

My further research into Bitcoin and how cryptocurrency is mined is that Bitcoin mining is like offering your computer's task load as a slave computer to provide processing power to work on the network for whatever task load is needed for the software. A combined network of computers to become one whole supercomputer to complete the task that the main software is ordering. That main software is called the pool managing software and that person who facilitates that is also getting paid also. Perhaps for something else that he needs a pool of computers to provide processing power.

Think of it as a heirarchy of servers. The main servers are the ones that the owner maintains with the server software. They would provide some kind of data request for your computer as a slave computer to crunch some numbers. Yet, your computer is not the only one, the other slave computers such as other avid computer users who hooked up to the network are also providing their computer processing power.

When this concept of reward for processing power started, you can mine bitcoin as a whole. That is 1 Bitcoin. 1 Bitcoin today is worth much more than when it started. To estimate the value, it is about 45,000 USD this year of 2021. Yet, back then you could provide your computer's processing power and your graphics card to help mine. Today, you have to buy a contract or buy your own bitcoin mining rig. A rig that is bought today is around 10,000 USD to carry enough hash power to mine for a profit.

I'd rather become an investor than a miner these days. If you would have a Coinbase account or ItBit to trade your bitcoins, you are far better to make a profit rather than buying cloud mining contracts or running your rig yourself. The reason, the difficulty level of mining is always ascending and the volume of bitcoin is fixed.

This type of investment is different than the three market indexes of USA. A regular company can always change the volume or even lessen its stock value. All together or separately. Bitcoin has a fixed volume and the more the difficulty rises for hash power, the more the value becomes. It is sorta weird. It is like slicing a pie, then slicing some more, and slicing some more. Yet, while slicing this pie over time, the value of the pie goes higher. If the pie gets smaller, the need for more sophisticated knives.

This in turn means micro-surgery, and no one's computer can do as much hashing away as before. That is when the mining rigs came out to provide those types of tasks. Bitmain, the Isreal company that provided a better mining rig, and others as well. We moved from regular computers to server-based rigs that are programmed straight to mining. All you have to do is connect it to the internet, program it to connect to a mining pool and start earning money. With some pool mining fees for maintenance that is.

Bitcoin has a bad past. This currency was used for under-the-table transactions for criminals to make a profit. The Silk Road story. Since cryptocurrency was new, and it provided a platform for money laundering to a lot of criminals. People who work for hire, sell drugs, or other illicit businesses use bitcoin as a form of payment. I still think cryptocurrency is still being used for a lot of criminal services. This type of currency was the best way to send money or receive money without all the red tape and attention.

As of now, eventhough FBI has caught up and they are aware of Bitcoin. There are new innovations of this cryptocurrency. From over the counter market exchanges, Bitcoin ATM's, paying Dish Network bills, and buying game through Steam on PC. This cryptocurrency is close to paying people with gold like the minting of the first gold coin. Only, it is digital.

bitcoin

About the author

Waldo Yamada

I was born and raised in Guam. I was one of those kids who can speak English and Palauan. I joined the US military at 18 and finally found a plot here in Yuma, Arizona. I am now a student at Arizona Western College.

Reader insights

Be the first to share your insights about this piece.

How does it work?

Add your insights

Comments

There are no comments for this story

Be the first to respond and start the conversation.

Sign in to comment

    Find us on social media

    Miscellaneous links

    • Explore
    • Contact
    • Privacy Policy
    • Terms of Use
    • Support

    © 2022 Creatd, Inc. All Rights Reserved.