BitCoin: The CTKH relationship
As of early 2014 the BitCoin hype hit the OTC. Many symbols have experienced 2,000-5,000-10,000+% gains from the mere PR of BitCoin Exchange. Beyond the incredible gains we've all asked the same question at some point,"What exaclty is BitCoin and how are we involved?".
BitCoin is a peer-to-peer digital cryptocurrency that uses cryptography to control the creation and transer of money. BitCoin itself is referred to as the technology and network, bitcoin is referred to as the currency itself. Overstock.com is just one of many to begin accepting bitcoins as a type of payment. By the end of 2014 it is anticipated that merely all large online retailers will accept bitcoin as a payment source. Since BitCoin is a peer-to-peer digital currency is requires no middle man and effectively streamlines the process. Purchasers are protected by cryptocurrency as are retailers. Retailers also wont see merchant fees for purchases made.
bitcoins were introduced in 2009 by a pseudonymous developer named Satoshi Nakamoto. In its creation only 21 million bitcoins are said to exsist. To create a single bitcoin it must be mined, or unearthed, in cryptography. Of the 21 million, 12 million have already been mined of which 9 million are unmined. The last bitcoin is predicted to be mined in the year 2140. bitcoin supercomputers run complex algorithms to find these bitcoins and once mined each bitcoin is asigned its own unique code. This code is the value for that bitcoin and can only be used once. Once it is used that particular bitcoin is useless making the 21 million in exsistense a finite number.
What is CTKH's relationship?
Because these ASIC mining supercomputers will only continue to run more complex algorithms they will require new hardware to keep up with the software. It IS NOT the software that will change how bitcoins are mined. It IS the hardware that will change how bitcoins are mined. Lets take for instance the value of a single bitcoin. The value is determined by the demand of the bitcoin and its supply into the market. As the increase in demand for the bitcoin is currently happening the increase in supplying the bitcoin has begun. With a finite number of 9 million bitcoins unmined the race to mine those remaining 9 million is in process.
Since the software will not change but the algorithms in mining these bitcoins become more complex the stress will ultimately be put on the hardware. Currently, the most advanced ASIC mining supercomputer requires more energy to operate than the top 500 supercomputers in the world combined. Because of the massive amounts of energy required by this ASIC mining supercomputer heat is its number one enemy. Recently this supercomputer has been liquid cooled to keep operating temps at a managable temperature. Daily the liquid is cycled and replaced as temperatures creep near boiling. Facing the fact that this one mining supercomputer will only see more difficult algorithms, increased temperature stress and increased energy demand in the future its clear the only solution is new hardware.
The hardware solution seems to be ceramic. Liquid cooling the mining supercomuter at first helped but it quickly was surpassed by the cost of cooling, energy consumption and efficiency loss in the mining process. This loss in efficiency combined with increase in cost of cooling and the energy consumption has created what many believe as a "lost leader". Because of the demand however the mining process will not slow down, it will only speed up! Internal ceramic components to these ASIC mining supercomputers is what many in the mining community believe to be key. These ceramic hardware components would allow for lower operating temperatures, lower energy consumption and more cost efficient proponents to these ASIC mining supercomputers. Thus, leading to more profitable margins.
Bottom line:
If the demand continues to increase in BitCoin, more bitcoins will need to be mined. At current pace the most advanced ASIC mining supercomuter cannot handle the load itself meaning other sub-par ASIC mining machines will not be able to handle the load either. In order to increase margins the most advanced ASIC miner needs to operate more efficiently. This efficiency seems to be atainable using internal ceramic components. CTKH has many ceramic components available that seem to work well with these applications.
This is my own Due Diligence that I have constructed based on my own opinions. These opinions are mine and mine alone. When investing it is suggested that you do your own due diligence and dont rely on any other one persons due diligence. I am not a professional investor just merely a private individual investing my time and effort.
