Bitcoin Shop, a bitcoin mining company based in D.C., was able to raise a total of $2.3 million from hedge funds and private investors to expand its operations. This was declared in the company’s SEC filing.
According to Bitcoin Shop CEO Charles Allen, the funds will mostly be used to enhance the company’s bitcoin mining. This involves verifying transactions made in the bitcoin network, allowing Bitcoin Shop to earn 25 bitcoins for each transaction verification.
What is Bitcoin Mining?
Simply put, bitcoin mining is a complex verification process to log each transaction in the public ledger called the blockchain.Whenever a new block of transactions is created, it is added to the blockchain, creating an increasingly lengthy list of all the transactions that ever took place on the bitcoin network.
Miners make use of an algorithm to solve math puzzles and are rewarded bitcoin for this, creating a way to issue new currency and giving incentives for bitcoin mining. The system is self-perpetuating and is the defining feature of bitcoin, making it a secure and anonymous mode of transaction.
Bitcoin miners are rewarded for successful verifications, as these add to the system’s security. This is necessary for the bitcoin ecosystem to exist since there are no monetary authorities or central banks that govern the cryptocurrency’s circulation.
According to its website, the goal of Bitcoin Shop is to enable users to engage in the digital currency ecosystem through one point of access, their universal digital currency platform. Apart from allowing users to shop for specific products they want to buy with bitcoin, dogecoin or litecoin, thy are also a publicly traded company with the ticker BTCS.
The company has also partnered with several digital currency companies in order to leverage their solutions and bitcoin mining operations. It has recently acquired additional equity in Coin Outlet for a systematic roll out of bitcoin ATMs in the country.
According to Bitcoin Shop CEO Charles Allen, the funds will mostly be used to enhance the company’s bitcoin mining . This involves verifying transactions made in the bitcoin network, allowing Bitcoin Shop to earn 25 bitcoins for each […]