https://padlet.com/christopher_hinton/dk8a66ol2xv6 By: Chris Hinton en-us 2017-03-26 15:06:51 UTC 2025-04-30 15:58:45 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Diskette.png christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162628028 Money Matters - Assignment 2
By: Chris Hinton]]> 2017-03-26 15:13:07 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162628028 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162628909 Digital currency, such as "Bitcoins" are a form of virtual money. Sometimes also refereed to as "cryptocurrency", digital currencies like this exists only in the virtual world of computers, but much like traditional currency it is used to pay for goods and services. With this presentation we will examine digital currency and attempt to answer some fundamental questions about it: How is it regulated? How is the supply of currency controlled? What sort of goods/services are available to purchase? Is there a down side? ...and more.]]> 2017-03-26 15:21:29 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162628909 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162631016 In the following video, we can see how Bitcoin has gone from something relatively obscure, with little value to becoming a major force where even major countries have had to sit up and take notice. It also shows that slowly even retail type establishments are beginning to accept Bitcoin as if it was actual currency. The rate in which this digital currency has gained popularity and monetary value is quite impressive.

Video source: http://www.voanews.com/a/digital-currency-bitcoin-creating-interest-and-controversy/1811511.html]]> 2017-03-26 15:48:51 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162631016 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162632479 Bitcoin is currently the most popular and quickly growing form of digital currency. As such, it will be used as the prime example of digital currency for the purposes of this presentation.

Though Bitcoin is a decentralized form of currency, there are groups that monitor and regulate it. One such group is the Bitcoin Foundation, whose website may be found at the end of this post. Their website includes information about their principles, financial policies, basic information about "what is bitcoin?" and more. If one is so inclined, one may also donate or become a member of the foundation.

Bitcoin Foundation Web Site: https://bitcoinfoundation.org/]]> 2017-03-26 16:09:15 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162632479 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162646885 Bitcoin mining is the process used to add additional bitcoins into the digital currency supply. Basically, the "miner" uses software to solve mathematical problems and in return Bitcoins are added to the individual's account as a reward. Specifically, the problems are part of the Bitcoin network to do with tracking transactions. With adequate starting capital to invest in hardware and electrical costs, anyone who can put forward the computational time can become a Bitcoin miner. The following website explains the process in more detail.

Website: https://www.bitcoinmining.com/]]> 2017-03-26 18:57:08 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162646885 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162660792 The following chart shows the trend of Bitcoin prices from 2012 until the present. Note: Prices are shown in US dollars (finding a long-term chart in Canadians dollars proved exceedingly difficult). For reference, at the time of writing this the Canadian to US exchange rate is 0.75USD.

With the exception of the dramatic rise and fall in price between 2013 and 2015, from 2015 onward one can see a steady trend of continuing increase in the value of Bitcoins. With this method of currency increasing in popularity, there is no reason not to think that the trend will continue.

Image source: http://fintrend.com/2017/02/25/cryptocurrency-is-bitcoin-the-future-of-money/]]> 2017-03-26 21:47:07 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162660792 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162662204 Understanding exactly how the whole system of Bitcoins works gets a little complicated. The following video, brought to us by Khan Academy does a pretty good job of explain the basics. In addition to clarifying a bit about what Bitcoin "miners" are, it also explains how it is very difficult to defraud the system by the nature of the way it carries out transactions. To do so requires tremendous computing power and anyone with such computing power is better off just mining Bitcoins honestly. This incentive for honesty is built right into the system. The video is a little long at 15+ minutes, but really worth a watch if you wish to understand how transactions with Bitcoins work behind the scenes.

Video source: https://www.youtube.com/watch?v=8zgvzmKZ5vo]]> 2017-03-26 22:08:49 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/162662204 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163423640 While any individual can get into Bitcoin farming, it's hard to compete with the computing power of those who are already in the business. Some individuals and companies have invested in large Bitcoin farming facilities, as can be seen in this picture. Many such facilities, large and small are at this very moment processing away solving the transaction validation puzzles. However, there still is the aspect of luck in the system and even a smaller setup does have a chance at solving puzzles. Since Bitcoins are currently worth over $1300 Canadian, even solving a couple of puzzles could pay for the cost of setting up a small system.

Image source: http://www.bitcoinisle.com/2016/04/20/worlds-largest-bitcoinether-mining-farm-unveiled-by-oxbtc/]]> 2017-03-29 13:54:37 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163423640 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163430472 There are a number of Bitcoin exchanges available in Canada, where one can get an account to purchase Bitcoins. Some exchanges may also facilitate transferring Bitcoins into cash, though this is a little more rare. With Bitcoin becoming more popular daily, many traditional banks are not happy about a currency they have no control over. Some of these banks are making efforts to make turning Bitcoins into cash more difficult. The following website lists a number of popular Bitcoin exchanges currently operating in Canada.

Website: http://www.buyingbitcoin.ca/exchanges/]]> 2017-03-29 14:13:08 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163430472 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163435401 Though Bitcoin is now becoming more mainstream, at one point it was often the payment method of choice for illicit activities. The "Silk Road" was a prime example of this, being a virtual black market facilitating all manner of criminal activities including, but not limited to illegal drug sales, identity theft and theft/sale of credit card information. The silk road has since been shut down but one wonders what sites may have sprung up in secret to take it's place. The following video explains a little about the silk road and it's fall.

Video source: https://www.youtube.com/watch?v=LkRhBOZSw38]]> 2017-03-29 14:25:41 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163435401 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163588757 Originally, Bitcoin mining was intended to be carried out on normal computer CPUs. Soon however, miners discovered that GPUs (graphics processors) could accomplish this task faster and started modifying special systems to link multiple GPUs together. Eventually, specialized "ASICs" (Application Specific Integrated Circuits) took over this market and now most Bitcoin mining is done by this method, often in large data centers. These units can be purchased by anyone and individual units sell in a range anywhere between $180 to several thousand dollars each. The below is an example of such a unit, the AntMiner S9. This is a higher end model, selling for about $2000.

Image source: https://bitcoinworldwide.com/mining/hardware/antminer-s9/]]> 2017-03-30 02:24:24 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163588757 christopher_hinton https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163591160 The following are my answers to the assignment questions.]]> 2017-03-30 02:56:19 UTC https://padlet.com/christopher_hinton/dk8a66ol2xv6/wish/163591160