Cryptocurrency Mining 102

Mining-Bitcoinpk Blog

Cryptocurrency Mining rig demand is increasing day by day. Currently its very difficult to find mining hardware at a reasonable price.

So what is GPU mining to be exact?

Well its simply a computer running a mining software which instructs the graphical processing unit to process complex mathematical problems. This is in-turn rewarded in crypto. There are now coins that allow peer to peer trading of services, One example of such coin is PKT or Playkey. Its building a token asset that will allow low end laptops or personal computers to play latest games. Its a smart contract based on eth that will allow gamer to rent rigs or gaming pc to play such games. Similarly there is a crypto called gnt or golem that allows you to buy services for rendering of videos and will represent a token in between. So mining, and a digital local economy are based on new tokenism assets. These tokens or crypto assets are in early stages and being developed regularly.

The most demanded cards in this area are the nvidia 1060 and 1070, p104, p106, amd vega 56, 470, 570 and 580. People are now modifying these cards and over clocking them for better performance.  The amd series is in really high demand in subcontinent such as Pakistan, India due to low cost and low power consumption. While the graphic cards such as the vega and the p series are specially designed for mining are a bit more costly but offer better hash to power ratio (slightly better).

This is a huge SME growing in Pakistan, small investors are investing in the area for a potential big payout. A six GPU rig can generate about 170+ mhs on ether mining which can produce about 0.5eth per month while consuming roughly PKR 3000- 6000 depending on unit rate in the respected area in Pakistan. But that does not mean that it will continue to generate in this manner. They way cryptos are designed, they tend to become more and more difficult to mine and hence start producing a lot less.

The reason people are preferring to invest in this rather GPU than the ASIC miners. Not only does GPU use less power but you can resell them later on.

ASIC Mining:

The next evolution in mining came when ASIC or application-specific integrated circuits  were designed to mine bitcoin. This sort of hardware is available from very few selected companies.  

You can read more about ASIC or Bitcoin mining profitability, explained excellently in the following aricle :

https://coincentral.com/bitcoin-mining-profitability/

Blockchain 101 – At NEST I/O with NEM

blockchain-tech-session-nest-io

A presentation was carried out by Blockchaintech explaining how cryptocurrency and Blockchain worked. The session was organized by NEST I/O that allowed Danyal Manzar, Zain Tariq, Hasan Ali and Asad Batla to lay the foundation of what blockchain is and how it can impact different industries. The session allowed detailed understanding on blockchian, decentralization over distributed ledgers and crypto currencies.

NEM Blockchain

Blockchain technology was presented as a digital innovation solution that is poised to significantly alter fintech, health-tech, regtech and inurtech based markets within the next few years. New Economy Movement (NEM) was discussed in the session in detail which was presented as solution for smart contracts and digital document verification.

NEM (XEM) a smart asset based platform makes it easier for developers to get into Blockchain technology and start using it rather then re inventing the wheel. Its similar to Ethereum but allows easy deployments and the learning barrier is significantly reduced.

blockchain, blockchain session, zain tariq

The session was conducted on Saturday and was free of cost. It was scheduled for 2 hours which went on much longer then expected. The session saw great response with the room filled to capacity.  It might be noted that future sessions will be possible with the next one to be presented at Szabist university.

They are planning to arrange more free of cost sessions like this on mining, discussing the impact of ICO in a decentralized economy, Smart Contracts and use cases to motivate people specially developers to start taking interest in Blockchain and solve problems by using this technology. Further development along the lines of trading can be discussed to understand how all the crypto currency exchanges work. Since crypto and blockchain is a relatively new concept in Pakistan its very important to understand how and why does this work and how it can benefit in the long run.

 

Cryptocurrency Mining 101

mining in pakistan
Every now and then we hear about mining. Its a growing trend in Pakistan and we have now seen investors getting into this. We are approached every now and then on the topic and if its feasible in Pakistan. This is a harder question to answer. It really depends on what hardware you are using, what crypto you are mining is it ASIC ready crytpo or ASIC resistant coin or asset. To understand this further I decided to cover this in length followed by a few general questions that we get in Pakistan through email. This blog will first cover all mining details followed by do’s and dont’s.

What is Mining?

Well in simple terms its cpu, gpu, asic working towards solving a mathematical problem. The first computer that solves the problem gets rewarded, while also securing the network. There are 2 major flavors of this POW or proof of work, and POS or proof of stake there are others such as POI (Proof of Importance) or POB (Proof of burn). I will mostly cover POW and then a bit on POS. But basically miners are the one that make sure that a transaction has happened by including them in a block.

History of Bitcoin Mining:

It is important to understand why mining was invented and how it benefits the users of crypto currency. To understand this we have to look at bitcoin mining first. Satoshi we believe envisioned not only that currency control should be decentralized and distributed but wanted a fair way of distributing the rewards, while ensuring longevity of the crypto itself. In the early days a common question was what happens when the 21 million bitcoin are mined? and this was answered that at that time the cost of bitcoin might be so much that it will sustain the transfers over just the mining fees itself.

While at that time it looked like a long shot most people would just startup the original bitcoin wallet and start cpu mining form it. Every block that was discovered would be rewarded by 50 btc. As the price started increasing people came out with software that would use gpu and its power to mine bitcoin this gave it advantage over cpu in terms of speed. This was followed by ASICS and pooled mining.

CPU Mining:

There are still coins that can be mine which are cpu only a list can be found here http://cpucoinlist.com/ not sure if they are still feasible, I had written an old blog on how to mine with cpu http://bitinfo.today/cpu-mining/ some of the things maybe outdated but you should be able to search the updated pools and updated software form the coins website. I dont recommend this but if its something you want to use to learn about mining its a good way to start and learn how it works. While all algorithms can be mined with cpu and gpu, you will be left in the dust if you are competing on mining algorithms that are asic friendly. Look in to CryptoNight, Brypt, Prime Constellations, Scrypt-YAC and Dcrypt there maybe others but these the coins that you must look at to mine with cpu.

GPU:

GPU software was the second step in this evolution where developers found a way to mine the GPU. This allowed for faster speeds and is still very popular in coins such as zcash, etherium and etherium classic. This is still very popular way of mining and if you have expensive electricity this maybe the only possible way to mine. Most people are doing this now a days. In Pakistan we see many people investing in this. The most popular coins that are being mined right now are ethereum and siacoin if you are doing dual mining. However this brings the temperature up for the rig so its better to either single coin or if you live in cold area.

 

To be continued……

Waqar Zaka Help Rohingya Refugees through Bitcoins

Waqar Zaka Help Rohingya Refugees through Bitcoins

Power of Bitcoin

In a very promising and becoming turn of events a big group of Rohingya refugees in Nepal see the silver lining of their life in the clouds of Bitcoin. Waqar Zaka Foundation gives the aid of $4000 to Rohingya refugees through Bitcoin.

At this occasion Waqar Zaka let the people listening to his live transmission know that the money was transferred to Rohingya and will be transferred in future only and only by using Bitcoin. As Waqar Zaka mentions this, Bitcoin is a kind of currency which is always there for the poor and needy people who do not have any documents, let alone the bank accounts.

Sharing the details of the aid with his viewers, Waqar Zaka let them know how Rohingya refugees were mishandled in Bangladesh and how a small amount of $1000 was enough for them to rent a piece of land enough for more than 50 families.

With help of Waqar Zaka and his foundation, they have acquired reliable sense of living with water, food, other amenities such as warm cloths and blankets and most importantly, their own movable houses made out of aluminum sheets. The head of the refugee group talked to the viewers of Waqar Zaka and assured them of the help that Rohingya people had received.

Educating the Refugees

Waqar Zaka talked about Bitcoin and praised Bitcoin declaring it a currency for the homeless people and refugees throughout the world. Waqar Zaka provided them Android devices and taught them how to use Bitcoin wallet to receive the coin and then get it exchanged from local exchangers who deal in Bitcoin. He further arranged a lecture in a shed. With many Rohingya refugees sitting in front of him and with help of a whiteboard, he explained how Bitcoin can be used safely, how to keep the wallet secure, how expensive is the Bitcoin and what is its current value and how they can get it exchanged into local currency with ease and without having to show any documentation.

Easyload With Bitcoin & Ethereum

The power of crypto currency such as bitcoin and ethereum could be tested when you do micro transactions such as paying you post paid mobile bill or easyloads or even do super cards loads directly onto your mobile.

EASYLOADS

We have opted to give this service so someone sitting in USA or Dubai could easily load balance on their loved ones instantly via paying with btc and eth. You can pay anywhere from PKR 75 to PKR 1000 and topup your balance.

HOW DOES IT WORK

Easyloads
So how does it work, lets say you want to buy a ufone supercard or recharge your balance, first head over to bitcoinpk and from the first list select bitcoin or ethereum which is the 2 crypto currencies we support currently, enter your mobile number which should be 03xxxxxxxxx without any space or dashes. There after you have to select your network provider so from the drop down select the right network provider, the list has warid ufone jazz telenor and zong, for this case we will select ufone as we want to load the supercard worth PKR 520. The email in the last box is optional but its good to provide an email as if there is any issue we can easily contact you. There after just click the easyload button.


This will take you to the next screen where you will be promoted for the the payment in btc or eth whichever one you selected. The timer will start on the bottom. This is set as the prices are picked live keeping in view exchange conversion fees. Once paid it will take a few mins to confirm on the network. Confirmations are not controlled by us, bitcoin or ethereum confirmation are done by the network that takes care of this. Bitcoin is set to 2 confirmation and ethereum to 10 confirmation. We wanted to start of with providing you this solution so you can easily topup or pay your postpaid bills via btc or eth no matter which country you are in or even while you are travelling this is an easy solution.

Easyloads-invoice

Bitcoin

What Is Bitcoin?

bitcoinpk-blog

This is a question that is very hard to answer.  There is a lot of material to cover here, its so huge that Andreas M.Antonopouos has written a whole book on what it exactly is. Which recently had a second publication to it. The book is titled Mastering Bitcoin and is highly recommended to be read to understand in depth of what it is and what are its implications.

Some of the context that I write here will be taken from that plus combined with our own understanding of what bitcoin is and why it matters to Pakistan.

Bitcoin is a collections of concepts and technologies, which forms the basis of money ecosystems. In addition, its a system that allows boarder-less transfer of value. While most people call bitcoin a currency or money, its much more than that. Its a technology that forms the basis of transparency,  verification and accountability over a trust-less network. This is a lot to take in initially, but as you will start to have the understanding of btc(bitcoin) you will realize its importance as a technology.

Right now the bitcoin network is the biggest network in the world its more then 20 times the combined power of worlds top 500 super computers and increasing on a daily basis. This in turn makes it the most secure network in the world.

How Bitcoin works?

This is actually very interesting. Now a days there is lot of buzz in the market about “blockchain”, well this is a concept that Satoshi Nakamoto deployed through his white paper in 2008 which is now known as bitcoin.

He designed a software which was open source that would keep a public record of all transactions on a ledger. What that means is that once a transaction is written to the ledger there is no way to re-write it. The ingenuity of this was defined in the white paper which published by Satoshi in a system called POW or proof of work.

The idea was to let people provide hashing power to solve a mathematical formula that became more difficult with time and speed put towards it. This way whoever solved the formula first would be rewarded in this case with bitcoin and then write that transactions to the blockcahin. This bitcoin blockchain would then be replicated by all servers (called nodes) who ran a copy of the bitcoin wallet. This formed the basis of the first truly decentralized fair ledger which could be verified.

Unlike traditional currencies, bitcoins are virtual, while they can be printed on paper wallets they are non existent physically. However, bitcoins can be mathematically proven to exist. This is a concept that is very important to grasp. So to understand this you can move with your bitcoins in your pocket.

So if you reside in Pakistan that means the bitcoins are physically present here in a virtual setting in your wallet, If you lose this wallet they are gone forever. This can however be setup with online wallets but that bring the risks of the site (wallet site being hacked, we will get into details about securing bitcoins in another blog). For now its important that you realize that bitcoin can be kept in online wallets, offline wallets, multi-sig wallets or paper wallets. There might be other means but these are the most common ones.

How to buy or sell bitcoin in Pakistan

This is a common question and asked many times. There are multiple ways to buy and sell bitcoins in Pakistan. First we must understand that bitcoin is a decentralized commodity hence its price is dependent on the supply and demand.

What this means is that if you try to buy bitcoin and there is only one seller with bitcoin available right now in Pakistan he can demand whatever he wants and if you still need it you will have to pay the price he is willing to offer. At the same time there can be a seller who is looking to sell as he needs fiat like PKR for some need, but if there is only one buyer then he has to sell it at whatever the price the the buyer is willing to buy at.

So in this sort of way it works like an open market similar to that of gold where supply and demand usually depicts the rates of bitcoin. In Pakistan bitcoin or btc is very new hence the bitcoin to PKR price varies from where you buy it. Currently there are 5 methods to buy btc or sell btc in Pakistan.

You can use an order-book based trading platform urdubit, localbitcoins, remitano, MyCelium wallet or bitcoinpk through a credit card (the cost of using bitcoinpk.com with a credit card is not recommended as the price is too high due to charge-back risk). This is basically how the price of bitcoin is set. I will be covering each one individually to convey the proper understanding of them and how to use them in the future.

The Vision of Bitcoin Pakistan

INTRODUTION

Bitcoinpk vision is to introduce bitcoin, blockchain, crypto and ICO (Initial Coin Offering) in Pakistan and provide the same to the world.  The idea is to provide you a one stop solution to anything crypto, or digital crypto asset related.  We started this website about 4 years ago as a community based organisation, which hoped that people would come and help each other in teaching each other.  Back in 2013 it was too early, which made us realize that there is not enough people that actually really understand the true implication of what makes bitcoin great. This made it very hard to convince people that bitcoin was a thing for the future rather then a scam.

Today not only people are realizing what bitcoin is, but its popularity in world wide is increasing at a very rapid rate. To educate masses on this technology, we decided to re-amp the website with a modern design and integrate direct buying and selling of altcoins through services such as changelly  and shape-shift(coming soon).

START OF A NEW ERA OF BITCOIN PAKISTAN

We have already introduced the first step towards this new beginning. By integrating mobile easyloads through bitcoin, ethereum (eth)  and also allowing you direct buying selling of major crypto through changelly services. In the future we would like to add scam updates as we want people to understand, earn and profit from this system rather then the lose of money through scams.

Bitcoin is a system, a commodity and a currency combined in one and bitcoinpk.com is going to be the site that’s going to move it forward with the help of the community.  We would be happy to touch base with you and more then obliged to have discussions regarding btc, ltc, eth or any other crypto and arrange meet-ups or provide mining information in Pakistan. The eco-system of Bitcoin is only on the verge of exploding in Pakistan and soon you will have a lot more people talking about it, using it for much more then just speculative commodity.