Saturday, May 21, 2022
UniqPaid - online rewards program
HomeMiningThe Politicization of Bitcoin Mining Is a Distraction

The Politicization of Bitcoin Mining Is a Distraction

Author

Date

Category

The Politicization of Bitcoin Mining

The Politicization of Bitcoin Mining is being considered by most governments around the world. Bitcoins are created as a reward for a process known as mining. Miners are in the Bitcoin business to earn bulk rewards, including transaction fees. They can be exchanged for other currencies, products, and services. As Bitcoin continues to grow, bitcoin miners should be very aware of the risks of third parties and try to mitigate them.

The US Treasury has sanctioned Bitriver, a Russian bitcoin mining company that hosts miners on behalf of the big miners. Any American who has his miners hosted by Bitriver or who owns a significant amount of capital in the company must immediately stop interacting with Bitriver.

Political risk comes in many different forms

In the United States, it is politically risky to host miners in New York State, as it is run by Malthusians who hate freedom and are ready to stop Bitcoin from flourishing in its territory. It also proved politically risky to mine in Quebec in the mid-2010s, as the government was scared and began treating bitcoin miners who used the excess electricity produced by Hydro Quebec as second-class citizens, raising their electricity tariffs. and sales tax.

bitcoin mining

Thus making their operations unprofitable and therefore unviable. And now we find out that it is politically risky to host your miner in Russia if you are a US citizen because the government seems determined to sever Russia’s ties with the Western world in response to the invasion of Ukraine.

There are many American citizens and companies now struggling to figure out what to do with their miners after the Treasury Department made the announcement regarding Bitriver. Will Bitriver give them their cars back and let the US government get these people to get their cars if Bitriver is an ethical business and they are trying to do that?

Bitcoin miners should analyze the situation before loading their operations with third-party risks.

I’m a big fan of the incredible work that large-scale miners are doing around the world. We should all be concerned that governments in the United States, Canada, and the rest of the world will see these as easy-to-choose political targets for the future. Hopefully, this will not happen, but it is hard to argue that there are no massive targets against which insane federal governments can try to launch attacks.

Bitriver and their clients have been dragged into a political show and are now financially affected, as those in the political class are stunned by escalating geopolitical tensions. Honest people and hard workers are hurt as the war between the superpowers continues.

If you are conducting a mining operation, make sure that you consider local government policy contests and the size of your operation when building it. All present failure points where you do not want to focus your risk.

According to BitInfoCharts, Bitcoin miners were taking in 10 to 15 bitcoins per day from transaction fees for all of 2014 and half of 2015. An increase in fees started around the time Bitcoin’s scaling debate spilled out of the technical forums and into the media in the summer of 2015. Bitcoin miners were collecting around 30 bitcoins per day in fees by the end of 2015.

Keep in mind, that these transaction fees are collected in addition to the block subsidy, which was halved from 25 bitcoins per block to 12.5 bitcoins per block in the summer of 2016.

The block reward is the combination of the block subsidy and the transaction fees

Success in Mining!

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe to the Latest News

Loading

Recent posts