Even though bitcoin mining is a good road to get cryptocurrency, there is presently a lot of worry regarding the Genuity both the ownership of cryptocurrency and global mining operations.
Earlier in January this year, the Malaysian authorities raided the premises that were involved in criminal bitcoin mining activities. Even though Malaysia had previously considered cryptocurrency as illegal, it was not the official charge that the government used to ban these mining operations. Rather, local authorities crackdown was based on other allegations. For instance, they claimed the miners were not equipped with an official business permeant and also came up with other justifications.
What makes this case very critical is the fact that, usually, other governments in other nations will make use of these reasons to ban mining activities, even if places where mining is permitted. Will this come to pass? Most likely not, but rather it worth considering.
Even though mining represents around 0.60% of the world’s overall energy consumption, cryptocurrency mining is legal in most countries globally. Looking at the EU, for instance, there hasn’t been many official debates regarding restricting crypto itself. Yet there have been discussions concerning prohibiting cryptocurrency mining as a result of the high energy consumption related to mining.
Authorities fear mining may hinder countries trying to actualize their carbon reduction goal established by the Paris Agreement that will come into action in 2020.
With the fear that their national currencies will lose their value and governments will lose control over their individual financial systems, several governments restrict the ownership of cryptocurrency.
On the other hand, cryptocurrency projects have likewise come to the realization that there is a course for them to stop centralization of their new currencies. They are going all over to ensure that no government controls their supply using large mining operations.
To avert centralization, numerous activities utilize Proof-of-Work agreement calculations like SHA-256, which is expected to prevent miners from utilizing ASIC chips. While this isn’t as extraordinary as restricting mining inside and out, it limits how individuals can set up and benefit off of mining activities.
The good thing is that this kind of self-direction guarantees the decentralization of cryptocurrencies as well as counteracts occasions like vast scale 51% attacks from happening.