Get to know Cryptocurrency Mining-Trading
The rapid development of the digital era makes its existence unavoidable. The responses given to this period are so many, ranging from positive and negative responses, which require users to always apply updates or upgrades to their digital media applications.
The development of this digital world has an impact on the development of a digital transaction. Maybe, as a digital user, you are already familiar with the term “paypal”. Yup, paypal is an intermediary service or commonly called a “broker” in online transactions, where it can be used for various transactions. For example, it can be used for online business activities, buying and selling goods, buying software or applications, to receiving payments from other parties online.
The amount of trust or interest by internet users has made digital business people interested in doing more innovations, so that the digital currency trend, better known as cryptocurrency, emerged. Cryptocurrency is a technology for creating digital currency using cryptography as a security that cannot be counterfeited.
In a 2018 journal written by M. Fuad explained that, cryptocurrency technology was first introduced by Wei Dai in the cypherpunk system in 1998. Wei suggested the idea of a new form of money that uses cryptography to control creation and transactions, instead of using a centralized authority.
Currently, digital money has a strategic position, especially for online transaction users who do not use bank services. The main reason for choosing to use digital money is because it is practical so people don’t have to be tied to banks. However, in addition to having a fluctuating value and being free of tax values (still in the form of digital currency), you will be subject to administrative fees when redeeming into currency, both rupiah and foreign currencies.
Investment in digital assets is currently experiencing very high growth. For example, the price of bitcoin opened in 2009 was only around USD6, in early June 2018 around USD7,857, and in 2021 (early July) the bitcoin price became USD33,311 or equivalent to Rp. 484,331,312.
What is Cryptocurrency Mining?
Referring to the journal written by M. Fuad, the term “mining” in cryptography has the meaning of an attempt to find and break new blocks in the form of bitcoin or altcoin (the term digital money other than bitcoin) using an algorithm. The mining process is carried out by mathematical calculations carried out on cryptographic networks and systems on the internet.
With this verification, miners will be able to find new blocks in the cryptographic network. From the mining process, a new cryptocurrency was born, gradually the level of difficulty in mining will be increasingly difficult.
Mining requires a reliable computer with a GPU (Graphics Processing Unit), or FPGA (Field Programmable Gate Array) or ASIC (Application Specific Integrated Circuit). In order to facilitate digital money mining, the author provides an overview of mining with only bitcoin (BTC) and ethereum (ETH) types.
To be able to do mining, a computer with a GPU system installs a certain script on the BTC/ETH network to find new blocks using the cryptocurrency algorithm solving, after new blocks are born, the company will provide a “bonus” in our wallet.
Cryptocurrency Trading
The price of bitcoin is determined absolutely by supply and demand, meaning that if a lot of people buy bitcoin, the price will go up and vice versa. The high and low circulation of bitcoin and altcoins is caused by several factors. One of the factors for the low circulation of money is the situation where there are more bitcoin traders than bitcoin users.
Most bitcoin users today are just traders who play bitcoin like stocks, not bitcoin users who actually use bitcoin to transact or shop for their necessities of life. This is because many merchant providers do not accept bitcoin as a means of payment.
To make it easier to trade digital money in Indonesia in particular, both in the form of bitcoin and other altcoins can be accessed through the website http://indodax.com namely the first official website founded by Oscar Darmawan in December 2013 (previously named vip.bitcoin.co.id)