It makes perfect marketing sense: TigerDirect, the online and store retailer of computers and consumer electronics, has started accepting bitcoins as payments.
“Bitcoin is an innovative payment network and a new kind of money,” TigerDirect says on its website.
Meanwhile, the company is aligning the bitcoin introduction with product promotions for cryptocurrency mining equipment in a bid to draw more business from bitcoin miners and entrepreneurs.
Those products include already hot-selling graphics cards and other hardware components necessary to mine bitcoins, litecoins and other altcoins — including AMD Radeon GPUs (up to $600 each) and offerings from Butterfly Labs, which manufactures a line of high speed ASIC bitcoin miner and encryption processors.
TigerDirect even provides instructions on how to get a digital wallet for storing bitcoins and how to obtain the virtual currency.
And most important for marketing purposes, TigerDirect explains — in layman’s terms — how bitcoin mining works:
“Think of it like an army of accountants constantly writing who has how much and who paid whom in a huge piece of paper for all to verify (the blockchain). The process called bitcoin mining confirms each of these transactions before it is saved into the blockchain. On a few occasions, a transaction is really a reward of several bitcoins. This reward is what gives bitcoin miners the incentive to mine. Because the process of searching for bitcoin takes a lot of effort for computers, it is has come to be called ‘mining’.”
Mining involves costly computer power to run graphics processing units around the clock. These GPUs solve computations, a cryptographic “hash” repeatedly until the result confirmed by the bitcoin network.The process yields blocks of bitcoin transactions, and rewards are divvied up among miners. The process has similarities for altcoins, such as the popular litecoin.