How Is Mining Bitcoin in Different Parts of the World?
c In different locations of the world, it faces various challenges. The intervention of some governments in controlling the process of mining Bitcoin shows that controlling and managing cryptocurrencies and Blockchain world are possible and the rules can lead to forming frameworks for the activity in this market. We will review mining Bitcoin in different countries around the world:
Mining cryptocurrencies is forbidden in China. One of the main reasons that the government of this country points out for such bans and limitations is the high electricity consumption which results in creating much environmental pollution, so the losses cryptocurrencies and Blockchain system will bring about will be much more than their benefits and advantages. There is some suspicion in whether the goodwill toward the environment causes China’s opposition to Blockchain and cryptocurrencies or there are some other reasons effective in it and no special suggestion can be given. Anyway despite all prohibitions, China is still among the countries with high number of activists in the field of cryptocurrencies and mining Bitcoin.
It has a dual relationship with cryptocurrencies which doesn’t have any clear dimension; that is, we cannot understand that whether this country is the advocate of cryptocurrencies and seek for making a framework to legislate it or it is fundamentally against it. Generally, the government of Russia has announced some bans against mining cryptocurrencies, but storing Bitcoins and activity with those which have not been mined in this country is permitted.
Canada is among the countries which are proponents of cryptocurrencies and it seems that it has a good understanding about this issue. In this country there are some classifications about paying tax for cryptocurrencies. If the people address acquiring Bitcoin in the form of the asset or revenue, they should pay the tax whereof; otherwise, there will be no need to pay it. Canada, too, is aware of high electricity consumption to mine Bitcoin; however, its difference with other countries is that it intends to start making revenue and launching businesses under the market of cryptocurrencies and Blockchain through recognizing Bitcoin mining processes and they can return consumed energy costs.
Bitcoin; a Global Phenomenon
High energy consumption to mine Bitcoin is among important challenges that this new technology adds to the world. But each phenomenon goes along with some advantages and disadvantages. It is this human intelligence which can use the advantages and change the threats into opportunities with their help. For example, using renewable energies to mine Bitcoin can lead to the increase of using these types of energies besides not causing any problem to mine Bitcoin. Energy consumption and environmental pollutions coming from it have some solutions and alternatives which should not turn into a factor to remove this fully-functioned and useful cryptocurrency.