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Joy of Medina County Magazine | November 2021
BUSINESS: FROM A TECHNICAL MIND
Cryptic Crypto Clarified by Tyler Hatfield mentioned. What is interesting is that anyone can do this with their personal computer, but there is a catch or two. Processing cryptocurrencies requires a very powerful computer to generate coins at a reasonable speed. The process is called mining, and the speed at which coins are processed is referred to as the hash speed. The hash speed is very important because it directly affects how much money is being created. A powerful computer may mine up to $7 in coins per day, but the cost of the electricity spent producing those coins is often photo by Andre Francois McKenzie near or more than the amount earned. Because of this, cryptocurrency mining In last month’s column about ransomware, https://bit.ly/ has fallen out of favor with small or individual groups, while it 2Yr3HHj , the term “bitcoin” was briefly mentioned. But what is has continued to grow in large mining corporations that can it? produce currency on a much larger scale. Bitcoin is a digital currency or cryptocurrency used to pay for Then why do cryptocurrencies exist? Because they have many things online, and there are several different ones in existence. legitimate uses, as well as some less savory ones. These currencies exist only online, which is why they are On the positive side, cryptocurrencies are nearly impossible to called cryptocurrencies. They are traded the same as paper manipulate and very secure when stored correctly so they are money is online. They also have a specific value that allows great for investments; paying off large debts, like tuition; and them to be traded for real money, but this value is very volatile general online shopping. and changes by the second. However, on the dark side, because cryptocurrency The major difference with cryptocurrency is in how they are transactions and the coins themselves cannot be tracked, created and stored. cryptocurrencies are the top choice for things like online drug Unlike traditional paper money and funds stored digitally with transactions, human trafficking and scams. banks or credit cards, bitcoins are made up of long strings of As noted in last month’s column, a common bitcoin use is in encrypted letters and numbers. ransomware demands. Since it cannot be tracked, data These chains of encrypted data get stored in online pseudokidnappers cannot be tracked like they could be if ransoms banks that hold them on heavily secured and encrypted data were paid through debit cards or bank accounts. storage drives until the account holder “trades” them, the same Cryptocurrencies currently are not for the average person and way money is spent from a debit card. have few uses for people outside of special jobs and hobbies. What makes these currencies bizarre comes down to how they are made and handled. Rather than being printed like standard Tyler Hatfield has a passion for technology that he would like to someday turn into his own business. He runs a small media money, these coins are calculated by computers. group, hatsmediagroup.com, and works on computers on the This is done using a hash, which, in simple terms, is a very advanced mathematical formula. A computer runs the formula side. He can be contacted with questions and for recommendations at hatsmediagroup@gmail.com and, after some time, calculates one of the long strings that makes up a coin. These are then stored in the banks previously
