Skyrocketing Bitcoin, Fortunately Nvidia

Bitcoin can be obtained in two ways: buy or mine.

IMG SOURCE : screenshot https://bittrex.com/market

• Bitcoin, the digital currency with cryptographic technology, again astounding the world. This week, the value of one Bitcoin is equivalent to $ 8,117.62 or Rp 109,884,230. The amount of Bitcoin's price, one of which is caused by the mechanism of demand and supply that occurred. Bitcoin, has a towering value, after he became the digital currency idol of many people.

"We need to know the formation of Bitcoin prices. Establishment of price based on demand and supply. When there is demand and new supply is formed a price. This means that if his demand increases, the price rises. Demand is reduced, the price dropped, "said Oscar Darmawan, CEO of Bitcoin Indonesia explains how the price of Bitcoin formed.

Also read: "Do not See Bitcoin as Money But Digital Gold"

IMG SOURCE : screenshot https://bittrex.com/market

Bitcoin price formation system is similar to what happens to investments in gold or stock. Profit occurs when the selling price is higher than the purchase price. Satoshi Nakamoto, the creator of Bitcoin who until now has not known the true figure, became one of the greatest Bitcoin owner figures. He is suspected of having 980,000 Bitcoin. If it compares with the current Bitcoin price, the investment benefits of Nakamoto have now touched more than $ 7.9 billion. That amount of money put Nakamoto in 202th position as the richest person in the world by Forbes Magazine. He is superior to the figure of Jay Y. Lee, the de facto leader of Samsung.

Mining Bitcoin

Bitcoin, like gold, is obtained in two ways: buying or mining. The first way is the easiest to get Bitcoin. People live to go to Bitcoin or Bitcoin owners to do the buying and selling process. While mining, like gold, requires a certain amount of energy and ability to acquire it.

Mining Bitcoin, though often identified with gold mining, basically has a very different way of working. In the case of gold, mining is defined as the process of taking gold from a certain place. However, in the case of Bitcoin, mining is defined as a reward given by Bitcoin for the assistance the miner provides.

Bitcoin's rewards are related to how the digital currency works. Bitcoin, as a digital currency, has a different approach than conventional currency. If the conventional currency is controlled or regulated an institution called the bank, Bitcoin, empowered through the community.

About 10 minutes, Bitcoin releases information related to its last transaction. The release of that information, printed in the form of cryptographic hash, a unique digital signature consisting of several numerical digits over a digital data. Digital data in this case is a Bitcoin transaction that occurs. The number "1000" for example, has a hash "40510175845988f13f6162ed8526f0b09f73384467fa855e1e79b44a56562a58".

Bitcoin miners, through computer or machine devices in particular, are empowered by Bitcoin to guess the input value of cryptographic hashes released by Bitcoin. This is done to validate whether a Bitcoin transaction is an actual transaction or not. A machine used to mine, making the first transaction Bitcoin following its cryptographic hash, as a benchmark to guess the input of the cryptographic hash that Bitcoin later released. For the help of this given validation, Bitcoin, through its embedded algorithm, rewards.

Bitcoin mined, will be more difficult day by day. This happens, in addition to more and more rivals, because Bitcoin fixes its own limits on the 21 million pieces of Bitcoin. Bitcoin, will not increase in number after reaching the number 21 million someday.

Read also: Bitcoin More Expensive, Is the Investment Safer?

Mining Bitcoin, obviously not an easy and cheap matter. In addition to using a home computer or laptop, mine Bitcoin, now contained with a special machine called ASIC or Application Specific Integrated Circuit. ASIC is a special chip made for specific work, in this case mining Bitcoin.

One of the largest Bitcoin miners groups is a group located in Ordos, China. Referring to the report published by Quartz, the miners' group with 50 workers, runs 21 thousand special machines to mine Bitcoin and other crypto currencies. The amount of power of the miner's engine, represents 4 percent processing power in the Bitcoin network.

Skyrocketing Nvidia

In addition to miners and investors, Bitcoin's rise has also positively influenced two tech giants that have been known to create graphics card products or GPUs (Graphic Processing Units). Generally, graphics cards are sought after by computer game lovers and video lovers. Graphics cards are used to enhance the computer's visual capabilities. In the case of Bitcoin, graphics cards are now popularly used to mine the digital money.

To quote Bitcoin website, the popularity of graphics card as a Bitcoin miner has a cause. First, Bitcoin miners can not rely on CPU (central Processing Unit) to mine. This happens because the CPU is the main brain of the computer. Its strength can not be optimized to take care of matters related to Bitcoin mining. CPU power, divided to take care of all computer components.

The second reason for choosing a graphics card is because it is, in general, only designed for a single purpose only. Graphics cards, as mentioned above, are intended to enhance the visual appearance. In general, Laptops do not even install a special graphics card. The graphics card's specialized work is then modified to, specifically, mine Bitcoin.

Bitcoin mining fever, Nvidia and AMD, as the creator of the graphics card capture a significant advantage. As Fortune proclaimed, Nvidia is said to experience an annual income increase of 56 percent. AMD, as Nvidia's competitor, saw an 18 percent increase in revenue.

Referring to Nasdaq data, in the last three months, there was an increase in the value per share of Nvidia, the company's market leader about graphics cards. At the end of August 2018, an Nvidia stock was priced at $ 169.44. A month later, the value of an Nvidia share rose to $ 178.77. At the end of October, a sheet of Nvidia stocks again increased to $ 206.81. And as of November 20th, Nvidia's price per share hit $ 214.08.

"(World of crypto digital currency) is a very important market that will continue to evolve over time," said Jen-Hsun Huang, Nvidia's Chief Executive at CNBC. "It's very clear that the new currency will go into the market, and it's very clear that the GPU is fantastic for cryptography," he added.