Before discussing the legality, we’d like you to know exactly what is Bitcoin mining is and how does it work.
Bitcoin mining illegal refers to the process of adding transaction records to a public ledger called Blockchain. In this ledger, every single Bitcoin transaction is recorded, and the record is always open for the public access. The record of these transactions is organized into blocks.
The creation of these blocks is what Bitcoin mining is based on. Every time a new block is created, it is added to the Blockchain for public to see it. However, it does not reveal the identity of parties involved in the transaction.
The block creation is done through solving mathematical algorithms using powerful computers.
So Why Would It Ever Be Considered Illegal?
There may be several reasons as to why people consider it illegal. More than often Bitcoin mining is confused with counterfeiting the money, which is completely false.
You are not counterfeiting your national currency, but rather creating a completely new currency.
Another reason behind some governments opposing Bitcoin is due to it being decentralized. Due to the fact that Bitcoin cannot be regulated or controlled, several governments view it as a threat to their national currencies. Some governments also believe that Bitcoin is actually undermining the government itself by offering non-state currency.
Moreover, the Bitcoin cryptocurrency can be mined illegally. One of the most common examples is the miners hacking your PCs through malware and using their processors to mine coins.
In Which Countries Is Bitcoin Mining Illegal?
The governments all around the globe have a mixed stance on this subject. For example, in Russia, the possession, as well as the use of Bitcoin is illegal. In fact, Russia is considered to be one of the biggest anti-Bitcoin countries out there. Presumably because of the current financial crisis brought about by low oil prices and the sanctions instituted as a result of Russian activities in Ukraine.
Ecuador is another country to oppose Bitcoin, but interestingly enough, has launched its own digital currency. The currency is designed to lower the government’s reliance on fiat currency.
Another country to outlaw Bitcoin is Iceland. Then there are other governments such as Indian government that have made negative comments against Bitcoin but haven’t launched any official bans on the mining/ownership of the currency.
Legal Bitcoin Mining:
The majority of governments seem to be okay with Bitcoin and have not made any negative remarks or launched an official ban as of yet. US, China, South Korea are few to name.
In these countries, you can legally mine the coins by using your own Bitcoin mining hardware and electricity resources. However, stealing the said resources may still result in prosecution.
For more information on mining hardware, Read our guide on how to set up a bitcoin miner.
In all, Bitcoin mining is completely legal and safe for the users. Although there are some countries that have outlawed the currency, many countries remain to be silent on the issue and have passed no legislation for or against the most widely used cryptocurrency.
Do you think Bitcoin is decentralized? I guess 95% of you will say YES but after this little analysis, I think that number will be lower. First of all, I am not hating on Bitcoin, I love BTC because without BTC, market would collapse. However, I was just curious whether Bitcoin is really decentralized? As I said, most of you will say ” Yeah, it is “, I would say so too but after giving it a few hours of thinking I am not sure if it is decentralized or not.
To understand this whole review, first you have to know what mining means. Mining is a process where we use special algorithms to find solution on how to confirm transaction. Without mining, transaction won’t be confirmed, price will slump and all bad stuffs would come. So, without mining, there would be no Bitcoin.
Let’s Suppose If there are 1 million miners, Bitcoin will be decentralized because none of them is able to control Bitcoin. And here is the biggest problem, there are a lot of miners but there are also mining pools. They are huge. For example, AntPool and BTC.com are the biggest at the moment with percentage of 16.9% and 15% respectively and total 31.9%. So only 2 mining pools are almost one third or all mining power. 3rd one is BTC.top with 13.3%, 4th is SlushPool with 12.4%. These 4 pools have total mining % of 57.6 (Dated: 11 December 2017). So, they are mining more Bitcoins than all others together.
Still think that BTC is decentralized?
What would happen if they decide to cooperate and decide to stop mining or something like that? Bitcoin will encounter a HUGE price inflation. These problems wouldn’t be unresolvable but enough to make big correction that would last for few months if not years. What would happen if they decide to make their own version of BTC and stop supporting current BTC? As we have seen Power of Forked Bitcoin Cash and some glimpse recently when it touched ATH of $1758 back in November.
This is a big problem for BTC. Main idea was to create decentralized money but, for me, result is not same as the idea. They are able to manipulate and make huge money and grow every single day.
James Howells, the IT laborer who unwittingly disposed of a hard drive containing what is currently valued at around $75 million worth of bitcoin, knows where the missing hard drive is, but he can’t try to recover it. That’s because the city in which the fortune is covered won’t enable him to delve into the landfill.
The missing hard drive is sitting somewhere under 200,000 tons of junk in a Newport, South Wales landfill.
Howells used an old PC to mine a sum of 7,500 bitcoins in 2009. Presently, he sold the parts to the Dell M1710 on eBay after his girlfriend complained about the mining’s clamor. He kept the hard drive in a cabinet, just in case the bitcoins increased in esteem. However, he overlooked the hard drive, and after four years, he disposed of it with the trash.
Howells has not been able to get consent from city chamber to dig into the landfill to recover the hard drive. Doing as such would require particular hardware that is typically used as a part of criminal examinations.
He was informed that a situation where even the police needed to go digging would require a group of 15, incorporating diggers with compulsory personal protection equipment. He couldn’t reserve such an operation, so he set up a wallet for donations:
City Council Denies Permission:
A Newport City Council representative said somebody has reached them in the past about recovering IT equipment containing bitcoins, but the chamber has shied away because of the expenses of uncovering the landfill and treating the trash, as per Wired. Such an exertion would cost millions and be environmentally destructive, with no assurance that a working drive would be recuperated. Around 50,000 tons of waste is added to the landfill every year.
A city chamber representative said the drive has likely experienced genuine galvanic corrosion from landfill leachates and gases. The landfill isn’t open to the public use.
Howells has the public address for his bitcoin, so he knows the bitcoins have not been moved. Since the information is encrypted, any individual who finds the hard drive would require Howells’ assistance to get to it.
Story credits: ccn.com
Image: Google images
In earlier days, the concept of money used to be a physical substance, such as gold and silver. Some ancient cultures used living things as a form of money – cattle were one of the oldest forms of money.
However, the modern world is becoming more technology centered. Ever since the introduction of the internet, everything, from space to schools and shopping centers is dependent on the internet, and even online transactions have suddenly become a THING! More and more people are starting to make online trades, as it gives them the ease to purchase any desired item without having to leave the comfort of their bedroom.
Many of these purchases are often made with e-money or Bitcoin – the most widely used form of digital currency.
The currency first came into circulation in 2009. During that short time span, Bitcoin was able to spark a lot of attention and worldwide interest. As a result, many merchants are now starting to accept Bitcoin payments for their services.
However, despite all the talk about how people nowadays keep themselves updated with the latest technological innovations, many still seem to struggle when it comes to differentiating between Bitcoin and e-money.
In this article, we’ve outlined how E-money and Bitcoin are different from each other. Let us begin.
How are they different?
Electronic Money aka e-money and Bitcoin are two systems for making payments that are digital in nature. Besides that, nothing is common between the two.
Electronic money is a mechanism designed to interact with traditional currency such as Euros and Dollars. Whereas, Bitcoin is an independent cryptocurrency with its developers and users having complete control over it.
Some anonymous programmers using the pseudonym, Satoshi Nakamoto, launched Bitcoin in 2009. It’s a digital file that consists every transaction that has ever happened in the network in its ledger, aka, block chain.
Bitcoins are not like fiat money, they are mined using computer power of high-tech computers in a distributed global network of volunteer “miners”.
The money balance recorded electronically on a stored-value card is electronic money. Unlike Bitcoin, e-money is under the regulations and controlling of the Government central banking system. Banks and customers would have public-key encryption keys. Public-key encryption keys come in pairs. Only the owner knows the private key whereas the public key is available to everyone.
In comparison, Bitcoin is strictly limited to Internet connection but E-money just requires access to electronic devices like mobile phones and an agent network. Also, e-money is equal to the amount of fiat money in exchange for electronic form whereas, Bitcoin has no possibility of reaching the real world in the form of a bill.
Example of a system supporting E-money
M-PESA is a mobile phone money transfer system that had launched in Kenya in 2007. It starts with converting fiat money into an equal e-balance, by only entering the recipient’s mobile number and the transferred amount. The issuer confirms the transaction by sending an SMS to the recipient. The benefit of this method is to eliminate the interference of banks which makes it so popular and successful in Kenya.
E-money and Bitcoin have their pros and cons but it is solely the responsibility of the user on how they handle their earnings. If more and more people shift from paper money to virtual currencies, this could irreversibly change our lives and social interactions.
It has been about two months, hedge fund billionaire Michael Novogratz thru a brave announcement, he’d put 10% of his net wealth into cryptocurrencies with Bitcoin and Ethereum. But a very much could happen in a few days like the worth of Bitcoin has more than doubled, and the worth of Ethereum has increased six-fold.
So, around the time digital currencies touched all-time high earlier in June, by hitting the price of Bitcoin to $3000, and the worth of Ethereum breaking $400 these days. Novogratz believed that the recent crypto boom had topped out. He sold a lot of his digital coins.
Image Credits: newsbtc.com
“I sense the market had a great run, and trees don’t raise to the sky,” Novogratz spoke this week, talking at CBInsights’ in New York, “I have a lot fewer coins, they just value more,” Novogratz added.
Some days after setting highest, the price of Bitcoin and Ethereum fall down about 25% in just 24 hours, and Ethereum is still on falling.
Digital Currency dealers have become adapted to their prices aggressively doing push and pull, up and down in waves. A 30% fall in the Bitcoin worth in May headed its current highest by about two weeks, but the recent downdraft seems more constant. However, the digital currency entrenched in a technology system identified as the blockchain, have individually since improved some of their losses, they have to drive anywhere near to their high.
Now, investment groups are investing in blockchain companies. They think that the digital currencies have peaked for some time, and it can be a while before they come back to the highest level. Novogratz still has a firm stance on cryptocurrencies and their performance in the longer run. The only thing he is waiting for is the right purchase time so he can start from where he left off.
Eventually, Novogratz has faith that there will be a time when stockholders are recovering off getting out of digital currencies entirely, However, it is almost a long way off. Novogratz predicted that “I think that Bitcoin, Blockchain, Ethereum, and ICO revolution is leading us to the single extreme bubble of our lifetime”. No doubt, when that bubble pops, it is possibly a perfect time to buy back in.
Story Credit: fortune.com