Why More Government Bans Mining Operations Bitcoin Currently Because Of What!
The mining industry has been a Bitcoin is advantageous for many people in the community of cryptocurrency. Despite the growing popularity of bitcoin mining around the world, there are few places that are illegal. In a recent article, we look at where the mining bitcoin is currently prohibited. In this article, we'll look at some different cases to get a better picture of why more Government stopped the operation.
Chinese.
In many countries, have and/or trading cryptocurrency has officially banned. However, this decision would not necessarily lead to the closure of mining bitcoin. China is one of the few countries that have national impose restrictions on trade and mining.
Before the ban on mining bitcoin announced earlier this year, China accounts for more than 70% of the mining operations of the bitcoin world. Mining is not available stats after the block, making it difficult to tell the overall impact of the ban at this writing. There are several coordinated attacks, including one in April 2018 in Tianjin where 600 computers and eight mining high-power fan seized.
Chinese officials are formulating strategies on how to shut down the mining operations. This is evident with the leaked documents released in 2018. According to an article published by the representative, "in the document, issued to local offices of the financial regulator – the internet, authorities ordered to force mining operations out of business using measures related for the price of electricity, tax, land use, and environmental protection.
Environmental factors are important to consider as valid a reason for the ban on mining bitcoin in China. While the growth of annual carbon emissions in China only grew 1.4% (well below 2.0% projected) in the year 2017, China still accounted for around 30% of global carbon emissions. Considering that mining bitcoin now reaching 0.6% of total world energy consumption, and possibly more in the future, this is a real concern that the cryptocurrency community had to deal with it
However, others say that the reason for the ban on mining only associated with the purpose to enforce the closure of all cryptocurrency in general throughout China. The ability to create a new financial system can be seen as a threat to the financial system at this time. Although this possibility is not unique to China, it is important to consider the Chinese reaction against this change now because it is the world's top economy based on GDP. As a reaction to the ban, some miners bitcoin has moved them into mining operations overseas to places where trade is bitcoin and mining is legal.
Malaysia.
As written in the previous article, Malaysia has cracked down hard on illegal housing-based mining operation. In coordinated attacks, two mining bitcoin in the country closed. This operation is illegal, not because the overall ban on mining bitcoin, but because the people in charge of these operations do not have official business permit.
Although it is not clear how easy or difficult it is to get permission to run the Government in Malaysia mining operations, it is clear that the complaints of the neighbors is an important factor that led to the closure. Neighbors reported that the operation caused fluctuations in power and that the tenant was hard and irregular.
Although the United States federal Government does not put a ban on mining bitcoin, some local governments have enacted laws of their own.
For example, Plattsburgh, New York, a city of 20,000 inhabitants located about 20 miles from the border of Canada, has put a moratorium on mining bitcoin 18 months. In recent years, Plattsburgh has been the Center for miners because of cheap electricity prices bitcoin thanks to hydropower production in the St. Lawrence River.
However, the introduction of the bitcoin mining has led to higher electricity costs for all residents. This is because the hydroelectric facility must produce more than the amount of energy allocated to support the mining operations. For example, in December and January 2017 2018, even some residents who don't dig seeing electric bills rise $300.
Those who might consider breaking this new law might want to think again – the penalty set at $1,000/day of illegal mining. In the District Public Utility District (PUD) Chelan County in Washington, there was also a similar ban in place. One mining operation unauthorized bitcoin with electricity consumption of more than 11,000 kWh has been closed. Before authorities pulled the plug, this surgery spend around 20 x the standard household electricity
Even Mining Bitcoin Legal Could Lead To Illegal Activities.
**Many countries or cities do not have laws that prohibit mining or even require the permission of the business such as in the case described above; However, there are many individual operations that have been closed due to several different reasons that illegal mining activities.**
One such incident happened in Orenburg, Russia in April 2018. In this case, two people were arrested after it is known that they have made mine mining bitcoin in an abandoned rubber plant. They were charged with property damage and several other crimes. Also, these illegal miners stealing 8 million kW/h of electricity worth about 60 million rubles (~ $1 million).
Incidents like this are more common than you think. For example, in the U.S., State Government officials in New York and Louisiana illegally using government resources for the mining operation.
Workers at Australia's weather reporting agencies also undertake similar illegal activity. In all these cases, it is important to note that bitcoin mining itself is not illegal. However, the ways in which mining operations are running about mining is illegal. If the individual uses of time, money, and resources of their own to mine, chances are they will not face legal problems.
Although there are still some areas where mining bitcoin is illegal, it seems like the trend of banning of slow down. During the miners ' walk in a manner that does not negatively impact the lives of those around them, it is not surprising if the Government is reversing a ban that has been in their set.