Another day, another cryptocurrency. Which pop star is responsible for this one? Good luck finding out, for Burstcoin (much like Bitcoin) appears to have sprung out of the internet of its own volition. Yes, the founders of Burstcoin might be hard to find, but that isn’t stopping investors and miners from jumping on board. So what makes Burstcoin different from the other cryptocurrencies saturating the market? Slow down there; let’s cover some details on cryptocurrencies first.
A Quick (Simplified) Recap of Cryptocurrencies
Cryptocurrency mining is the process in which a network of computers work to verify that transactions have taken place. This is done through various methods – hashing being the most well known. Each transaction using a cryptocurrency forms a unique code and is then encrypted or ‘hashed’ to make the transaction secure; currency miners then try to decrypt or guess the ‘hash’. The winning miner is the one which has cycled through all the possibilities and found the right unique code. This information is then locked into the network, and the mining computers act as a storage facility for all past transactions. The winning decryptor is awarded currency for each successfully decrypted transaction. Rinse and repeat.
Hardware Requirements That Are Easy on the Pocket
One of the difficulties of cryptocurrency mining is that many of the major currencies rely on a specific bit of hardware: the graphics processing unit (GPU). GPUs are responsible for powering the visuals of computers; however, GPUs are also really good at hashing cryptocurrencies. If a central processing unit (CPU) is a kind of genius boss controlling an organisation, then a GPU is more like an army of toddlers; if you have enough, eventually you’ll get the answer you’re looking for, but individually they’re not the most useful employees. The nature of Bitcoin mining heavily favours using powerful GPUs.
Unfortunately, the market for GPUs has exploded due to mining. That’s sad news for frame-per-second seekers (gamers) and those interested in building a computer for mining alike. An average price increase of 25% across the board for GPUs (and in individual cases, a 50% rise) is causing severe supply and demand issues for PC builders.
Burstcoin has been around for a while, yet until recently it’s flown under the radar. The reason it’s gaining traction in the mining community is (in our opinion, anyway) because it uses hard drive space. In comparison to GPUs, even at their pre-mining price, hard drives are much, much cheaper. Hard drives also have the benefit of have much lower power consumption. Essentially, traditional mining is a pay-to-win game: those with the most powerful GPUs (and the largest quantity) earn the most. Burstcoin instead looks to flatten the playing field to make mining less dependent on expensive equipment; all users should earn roughly the same per gigabyte of data storage dedicated to mining Burstcoin.
The Market Price
The difficult part comes with predicting the rise and fall of the currency’s price. Certainly, being so accessible to casual users makes the mining side of Burstcoin seem very attractive. Like Bitcoin, Burstcoin is also a limited currency; as a limited amount is built into the system, if the currency became popular, the price increases could be gargantuan. On the other hand, the cryptocurrency could go the way of Coinye. Currently, Burstcoin is on a downward trend; this could mean it’s the perfect time for budding miners to start racking up some digital dollaridge in preparation for when the currency takes off, but it could just as likely be a flash in the ever-growing cryptocurrency pan.
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