Will the US ban Bitcoin mining?
Let's find out.
What is Bitcoin mining?
It is a validating process for Bitcoin transactions to go through; nodes are miners working to resolve computer puzzle games and try to guess the correct number of sequences to process the payment.
It is a technology advancement and energy consumption game.
Master two factors that will help you to win the game:
- faster speed of the computer power
- a large amount of energy consumption
Both factors bring down the cost of obtaining Bitcoin, making the process financially feasible.
It means Bitcoin needs to stay at a certain price level to make participants contribute to the mining game.
Creator's assumption
Satoshi argued that Bitcoin mining mimics gold mining. The assumption was built on the top that Bitcoin worthed more than the energy consumption contributed.
Current energy crisis
Europe is facing its energy crisis and likely has no solution in the short term.
There is no way to walk around the crisis but to continue spending more money, increasing inflation more.
Or we are in miracles to find an infinite energy pump - nuclear energy.
Or simply, everyone turns the light off during the night.
Or find alternative energy suppliers like this:
Why banning Bitcoin Mining
The real deal behind the ban is that if Bitcoin has more incentives, energy companies will mine Bitcoin through the government incentives program, which results from the government investment in Bitcoin.
Banning Bitcoin mining can stop energy companies from accessing Bitcoin directly through the government's funds which are opposite to what the Government intents to achieve.
There are many other debates on Bitcoin mining, but the main point is that when the government prints more money, it should not directly go into the mining business.
The government will not care of 0.1% of energy consumption but the future of how Bitcoin grows.
In Conclusion
Of course, that is just my first reaction, and I may be wrong about it. What do you think?
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Photo by Karsten Würth
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