Amit Bhardwaj, CEO of GainBitcoin, has been involved in Bitcoin trading among other cryptocurrencies since around the year 2010. Bitcoin has been hailed as one of the breakthroughs in the modern technology world. It portends a disruption in the finance industries and e-commerce at large. Bitcoin which is a digital currency can be quite tricky for most people to understand how it works and mine. It entails a lot of maths and numbers and use of sophisticated machines in mining it.
The business of mining bitcoin has evolved speedily over the years with several distinct groups of miners who have exploited different technology regarding power efficiency. The first generation of miners used powerful computer CPUs during the period of its invention in 2008 to 2010. Majorly all the bitcoins mined were generated using powerful computer CPUs.
The second generation of miners roughly during the year 2010-2013 used GPUs and FPGAs. These machines were much faster than the previous generation machines in performing hashing calculations. They used less electricity per hashing unit, and they were deemed efficient in reducing electricity cost of the operational plants and warehouses. FGPAs are much faster than CPUs and GPUs in mining, and they could clock a speed of 2500MH/S.
The current generations of miners are majorly using Application Specific Integrated Circuits or ASICs. These are microprocessors built for a single purpose. They are primarily built to perform the SHA-256 hash function that is used in bitcoin. ASICs are faster than any other mining hardware regarding hashing repeated block chains.
ASICs mine faster than CPUs, GPUs and FGPAs and hence preferably by most potential miners. Improvement in ASIC technology has also seen the introduction of faster machines in the market. However, the major drawback is the limitation in the hashing speed of an ASIC chip.
Amit Bhardwaj, the founder of GainBitcoin, has been actively involved with GBMiners, a startup dealing in cryptocurrency mining in India. Initially, most bitcoin miners were cryptography enthusiasts who used their spare computer power to validate the blockchain to be rewarded with bitcoin. However, with rising price of bitcoin more people have seen mining as a potential business, prompting them to invest in warehouses and hardwares to mine bitcoin.
Paypal and Microsoft are some of the companies accepting bitcoin alongside other businesses like pubs, tattoo parlors, and plumbers. In the luxury industry like the London gallery, they are pioneering art-for-bitcoin. This seems a game changer in the art industry. The store accepts payment in the form of bitcoin which makes transactions fast and safer. For example, a painting of rapper Notorious BIG is selling at their online store for 2.946 bitcoin.
Investment in bitcoin will mean more luxury travel considering that its price has been increasing. People who own bitcoins will feel wealthier, and this will impact luxury hotels which attract investors for their vacation, for example, Hawaii which could be one of the spin-off benefactors of the ever-increasing bitcoin surge.
People have ventured into bitcoin to earn passive income to supplement their salaries through trading it. Trading in bitcoin is no different from using fiat currency in trade since you are simply buying one currency for another. The principles that are used in buying and selling currency in forex market applies to bitcoin in that the spread is the income that a trader earns in return.
Bitcoin trading involves market speculation where you buy when the price is low and wait for the price to increase before you sell it a higher price to make the profit. Amit Bhardwaj who is actively involved in this when he was interviewed he said, “I can also hold onto the bitcoin and wait for the valuation increase and still make money out of it, which is not possible with the fiat currency.” He also added: “In the Indian ecosystem, bitcoin is still just a holding asset – this is not going to help the Indian bitcoin community to grow.
Some sites like localbitcoins allow one to trade bitcoin for fiat currency through individual trades, which is conducted over the counter trading. This method (OTC) allow ones to transact fast and it offers diverse methods of payment, it is referred to as market marking.
What is exciting most about bitcoin is the technology which underpins it, this technology which is known as the blockchain. This blockchain is managed automatically in the servers through a peer to peer network; this means that bitcoin is hard to hack or to reverse a transaction once initiated.
Amit Bhardwaj, the founder of GainBitcoin, owns and operates bitcoin payment processing services which aid in the online transaction. Investment opportunities that bitcoin provides include running online bitcoin casinos and lottery. These businesses allow its patrons to gamble with bitcoin and receive payment in return.
Bitcoin provides opportunities for entrepreneurs to come up with start-up which offer peer to peer loans to other entrepreneurs and small SMEs using peer to peer lending platform Bitbond. It involves individuals, entrepreneurs and small SMEs borrowing without the use of the traditional financial intermediary, and this ensures financing of those who are unable to borrow from mainstream banks with low transaction cost.
Goods and services can also be sold in exchange for bitcoins. Some of the things which can be traded include clothes, cars and old gadgets in exchange for bitcoin. There are sites online which offer this exchange; the two popular sites include Bitify and Purse.
It is evident that the invention of bitcoin presents immense opportunities for businesses and individuals to tap.