Bitcoin is exploding all over Thailand and is quickly a
foothold in international economic flow and function. The primary concept
behind bitcoin is that transactions are able to be completed securely and
anonymously. The process is largely unregulated and has no ties to a specific
government or agency. As a bitcoin user, you can enjoy direct financial
connections to a client without having to work through a bank.
Being a bitcoin user allows you to quickly and easily make purchases,
transfer money between accounts, and make money through buying and selling a bit
coins in a market with other users.
Bitcoin transactions are secured and recorded through a
public transaction ledger called a blockchain. The blockchain is monitored by
a series of networked software applications which verify all transactions to
protect against fraud and user exposure.
The reason this is becoming so popular in Thailand is due to
of the opportunity to mine bitcoins. Mining is the process by which users
validate and secure the blockchain. Miners are individuals or groups, and the
process allows users to get involved in the release of available bitcoins, and
earn a few coins along the way.
How to acquire Bitcoins
The bitcoin system works through using normal funds, Thai
baht, to purchase a certain quantity of currency. The current exchange rate
value is roughly 130,000 THB to 1 BTC. Much like conventional currency
exchanges, users go through bitcoin exchange services to complete secure
transactions and build their bitcoin wallet.
Another method of procuring bitcoins is to get involved
bitcoin mining. Mining is like working by a commission to earn a bitcoin
paycheck. Miners use specialized software and hardware to solve complex
mathematical equations. When a problem is solved the user is given bitcoins in
exchange for the answer.
What you are “mining” are transaction blocks within the blockchain. The math performed is designed to verify and secure all network
transactions. When transactions are verified more bitcoins are made available
to users. The more effectively and efficiently you are able to mine, the more
bitcoin you can acquire.
Bitcoin is a limited supply currency so that efficiency is
important because only a certain number of bitcoin are released daily. In
order to control the bitcoin flow, miners are paid a fee per mined block and
then given a subsidy of each uncovered coin.
Buying bitcoins in Thailand
The easiest way to purchase bitcoin is through the official
bitcoin website https://bitcoin.co.th. On
the website, you simply decide how much bitcoin you want and transfer funds via
bank transfer, ATM transfer, or cash deposit. After the transfer is complete you
upload the confirmation receipt to your bitcoin account and the coins are
released to you the same day.
As part of the mining process, described above, all
transactions are verified. When purchasing bitcoin, the transactions are
verified by a real person. This verification process is the reason why there is
up to a twenty-four-hour delay for the reception of your bitcoin. The process
of verification goes through six confirmations to give further assurance of the
safety of each transaction.
Bitcoin wallet Thailand
To get started with bitcoin you need to have a bitcoin
wallet. Wallets are created and managed through either mobile apps or desktop
programs. Wallet applications are programmed to work within the complex blockchain system in a seamless and user-friendly manner.
Wallets work by establishing independent addresses for your
balances and transactions. Addresses are required to conduct transactions, and
the wallet creates the virtual addresses to protect your identity within
bitcoin. A simple way to envision this is that each bitcoin address is like email.
You give out an address to a friend, customer, client, etc. this address is
used as the pivot point for all information exchanged between both sides of the
equation. With a wallet, you can create unlimited addresses, and assign bitcoin
to each address. This allows you to be more secure, and have easier control
over your balances. After an address is used, it is removed from the account
removing the link back to you.
Is bitcoin legal in Thailand?
One of the first
questions to pop up when discussing bitcoin is, “is it even legal?”
Understandably, the concept of having completely decentralized and unregulated
financial system seems fishy and completely illegitimate. However, the system
is completely legal. Since bitcoin relies on a trade of good, bitcoin, and not
actual currency there is currently no law that prohibits its use.
This all hinges on what you are using the bitcoin for,
however. Governments still have laws that govern how goods and services are
exchanged and disseminated. If you are using bitcoin to acquire illegal goods
and services than it is just as illegal as if you were using any currency.
Bitcoin’s network may be built on an untraceable system to protect your
identity, but you should still avoid using it to participate in immoral or
What to spend Bitcoins on
Once you have set up your account and set up your digital
wallet, bitcoin becomes like using a credit or debit card. You can use it
wherever and whenever you want to depend on if who you want to buy accepts the
At the onset of bitcoin finding retailers that accepted the
currency were scattered and few, but as the legitimacy has gained ground more
retailers are accepting bitcoin in exchange for goods and services. While it
remains a largely internet-based currency, more physical stores are accepting
bitcoin as payment for hard goods and services. There is even a trend of users
exchanging gift cards to non-accepting companies for bitcoins. This option opens
up the possibility for almost limitless available use of bitcoins across the
Using bitcoin in a traditional economic transaction is made
easier and more possible through bitcoin debit cards. These cards work similar
to a regular debit or credit card, except they are funded by your bitcoin
wallet instead on a normal bank account. Users can get a card that is backed by
Visa, and is usable almost anywhere debit cards are accepted. Fees are
associated with using the debit card and will vary depending on the card you
select. This is similar to most banks and credit card processing companies.
Make sure you research all options available before you decide to use your
bitcoins with a physical debit card.
How to get started with bitcoin mining
The first thing you need to understand when it comes to
mining is the concept of “hash rate.” The hash rate is the name given to the
mathematical data that your mining will have to solve. Each individual problem
is a hash, and the rate refers to how quickly your computer system can resolve
each hash problem. The higher the hash rate the faster your system verifies
data and the more opportunity you have to release and earn more bitcoins.
Bitcoin per block variability
transaction data block that is verified through mining releases 12.5 bitcoins.
The rate changes over time to allow a consistent release of bitcoins. A number of coins released per block halves at a rate of about four years.
Before we go any further into the details of bitcoin mining,
we should talk briefly about the competition factor. Bitcoin is limited to the
number of released blocks, and available hashes to solve. With no current limit
on the number of miners, that means when you start mining you will be going
against any number of other miners to secure the same transaction block.
To keep a level playing field amidst the competition the
difficulty for solving each hash increases according to the overall hash rate.
When a global hash rate is high, the difficulty increases to slow the rate at
which the blocks are unlocked. When the rate decreases, the difficulty
decreases to keep a level rate.
The competition has further increased due to mining
companies being established. Originally the mining was done by individuals at
home, but as the process has become more popular people began to set up entire
warehouses dedicated just to set up bit mining computer systems. For you,
this means that for your one computer some company has an entire server
dedicated to trying to run the transaction verification.
Fortunately, the bitcoin system has evolved to balance the
accessibility of bitcoins blocks. The current system has users share credit for
each block mined. So, basically, you are put on a team of miners working on a
single block. Upon successful decoding, the bit pot is shared amongst the group.
Granted, a company may have more members on the team than you do, but at least
you aren’t being shut out of the process altogether.
Starting your own mining
If you are interested in striking out on your own and
turning your home office into a digital mine you will need specialized
hardware, software, and an understanding of the investment costs. One of the
chief operating costs of having your own mining is the cost of electricity.
Obviously, the CPU you will be using needs electricity,
which you will have to pay out of your pocket to maintain. Mining bitcoins can
help you make money as you buy and trade services and coins, but like any
business, you need to weigh the cost of just the electricity to how much
potential income you can generate. Mining bitcoin isn’t a get the rich quick game,
and this is just one of several real costs to becoming a bitcoin miner.
Generally, unless you have access to inexpensive electricity that can handle a
mining system, bit mining for profit isn’t the best way to go.
As bitcoin mining has grown more popular the technology has
changed as well. Early on, almost any computer with excess processing power
could be used for mining. Now, miners are required to purchase specialized CPUs
called ASIC bitcoin miners.
ASIC miners are an evolution from the practice of using
graphics cards to power the hash processing. Essentially ASIC miners are built
solely for bit mining. The hardware is designed to be able to handle a large
dedicated load of data, and process the data as quickly as possible. ASIC’s are
divided into categories and prices based on their hash rate, and the amount of
electricity they consume. You can pick up and ASIC miner starting at about 4650
THB, and spend as much as 99626 THB.
Two of the top-rated ASIC miners are the Antminer S5, and
the Antminer S7. Both of these units offer a good hash rate and good
electrical efficiency. They also have a lower entry purchase price, 4650 THB
and 16272 THB respectively, so if you are looking to set up your own bitcoin
mining business, these are good options.
If you want to go the route of being your own miner, you
will need to invest in purchasing mining software. Like your wallet, the
software is what allows your hardware to connect to the Bitcoin servers, and
access the data of the blockchain.
The software is also designed to monitor your hardware, and keep
you up to date on temperature, hash rate, cooling fan speeds, and efficiency of
your bit mining operations. The software is made by different developers and
is available for Windows, Mac, and Linux. Getting the right software can make
bit mining more efficient, and much easier to manage. Some of the highest rated
software suites are CGMiner, BFGMiner, and EasyMiner.
Another option to get involved in bitcoin mining is to
purchase a contract with a cloud mining service. The cloud mining allows you to
get involved in earning bitcoins without actually purchasing mining equipment.
The gist is that you are investing in a mining center that handles all the
physical logistics. Users have three options to get involved with Cloud mining:
Lease a mining machine that is hosted by a
provider. You pay to have a machine dedicated to mine just for you, without
having the machine in your home.
Virtual hosting gives you the opportunity to
create a private virtual server. This server can handle the software needed to
mine. You manage the server, but the physical equipment is out of your control
You can lease processing power dedicated to
increasing hash rate. This is similar to leasing a mining machine, but you are
just investing in the processing power instead of a physical setup.
Cloud mining can be a great option to become a miner without
requiring a significant financial or physical investment. However, because of
the ease of fabricating a cloud mining company, there is any number of
fraudulent systems flying around cyberspace that can easily trap you and steal
your money. Do your research, thoroughly, to make sure you don’t get caught.
Some of the more reputable companies are; Hashflare, Genesis Mining, Hashing
24, and Minex.
While Bitcoin is the largest form of cryptocurrency in the
world, it is not the only option. Ethereum is a similar blockchain based
platform that relies on users trading the currency for good and services. Ether
is the name of the individual currency of Ethereum and can be mined and
purchased just like bitcoin.
Though it is smaller than Bitcoin, this platform allows
users to get involved in the mining, development, and use of the international
British expat living in Thailand for over 10 years, with a passion for computers and technology.