What is Bitcoin?

BTC

Digital Currency – Bitcoin is a digital currency. The reason that we and so many others think it is so remarkable is that this digital money is not controlled by any central authority – that can fail or be banned from taking part in the global money remittance network. The Bitcoin network is completely decentralised & the currency is produced by a community that anyone can freely join.

Banking the Unbanked – Bitcoins can be transferred almost freely and instantly, unlike conventional banks where one must pay a significant amount of money and the transfer may take days.

Diamonds or Gold – Bitcoin is not like the money that we know. It is produced and held digitally. It is created by miners that use open source software to solve mathematical problems. There will only be 21 million Bitcoins that can ever be mined and thus is a deflationary good unlike money produced by central banks in uncontrolled amounts. Right now, almost 16 million are created. One Bitcoin can be divided into 10 million pieces.

Usable and Userfriendly – An online payment with Bitcoin is fast, secure, and at next to no costs The number of goods and services that can be purchased with digital currency is also rapidly expanding. Debit cards are available that can be used for making payments in any known currency using Bitcoin as underlying.

What is Bitcoin Mining?

Mining

Bitcoin is created by the act of mining. The members of the network provide their computational power for calculating mathematical problems, and they are rewarded for this effort with Bitcoins. However, the more people that are mining, the more competitive it gets. Computers are good at solving these equations, so the Bitcoin Network  makes the solutions more and more difficult, otherwise all of the Bitcoins would be mined in a couple of minutes. There are already numerous types of specialised hardware on the market that have been designed specifically for Bitcoin mining.

As new models come out quite frequently, everyone must regularly optimise its mining gear, in order to remain competitive. Once a new mining rig is introduced to the market, the old ones quickly become outdated and therefore unprofitable. At the same time this gradual development of the technology increases the overall difficulty of mining again. The result is a never ending circle of the constant need to optimise. This explains why it’s a must to start with the best available hardware and to start immediately in order to mine profitable for as long as possible as well as not to lose a minute of precious mining time.

Logos Fund’s aim is at using environmental friendly sustainable energy sources (e.g. Icelandic water power) to make the mining process as green as possible!

Learn more about mining

Other Cryptocurrencies

ETH

Besides Bitcoin, there are various other cryptocurrencies that have evolved into a tradable asset with can be freely exchanged into existing currencies at public exchanges. The most prominent cryptocurrency besides Bitcoin is Ethereum.

Ethereum is a decentralised platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.

These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.