Understanding Bitcoin Mining (3 of 3)

Original Show Notes: Bitcoin Mining

 

Dominic Florczak. He has a B.pharm with distinction from the university of Witwatersrand and an MBA in business administration from Herriot watt university.

He’s is currently the managing director of a pharmaceutical company and is in charge of the firms corporate cryptocurrency portfolio. He’s an experienced trader dealing with both stocks and cryptocurrency.

Welcome Dominic!

Round 3-

[2:8] Ok let’s chat about mining today. Loads of people have made a ton of money when they started mining bitcoin. So firstly, what is mining and secondly is it still a thing that people still making money off it?
·       Mining is getting paid to verify transactions
·       Kind of like a jury that works to audit the blockchain
·       Every time it happens you get paid
·       In terms of profitability, there are loads of calculators available, it’s profitable, that’s why people do it
·       New tech called Burst maps the free space on you hard drive & it’s eco friendly
·       There is a big difference between mining and minting, in minting you put down your own coins as proof of stake so you won’t do false verifications

[7:39] With the increased computing power and complexity of the transactions that are being verified, what happens if there are not enough miners verifying transactions?
·       If that happens to Bitcoin they will need to change to a proof of stake system
·       There should be such mass adoption that your wallet should automatically do it, but at this point the tech is not developed right now

[8:52] So mining is verifying transactions, what about Raiblocks, from what I understand there is no need to verify transactions? How does Raiblocks differ?
·       The transaction is being verified but it’s happening very quickly
·       Tech is new and difficult to explain
·       The lattice structure allows the transaction to verify much faster
[14:26] What would be some of the next steps someone could take to start investing in crypto? What coins do you currently hold?
·       Etherlend
·       CosCoin
·       Stellar Lumen
·       Ripple
·       Kucoin Shares
·       Vibe
·       Sonum
·       Neo
·       Funfare
·       Doubtem
·       Steam
·       Burst
·       Etc. J

[17:47] Cryptocurrencies- the word crypto means encrypted and secure. Let’s chat about security of cryptocurrency, what would you recommend?
·       Plan to hold in the long run, it’s a much better return
·       Buy an external wallet, make sure it’s not second hand
·       You can back it up and be very safe
·       Don’t be lazy and leave it on the exchange
·       2FA, Google Authenticator etc.

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Value Link Round (VLR)

[23:14] How much return have you seen from trading crypto?
·       On the corporate portfolio over 800% in less than 1 year.

[25:2] Do you have any other parting piece of advice for our listeners?
·       Do you research
·       Don’t jump on the hype bandwagon
·       Don’t gamble