Bitcoin mining farm regulation

“One” The industry with tens of billions of dollars is facing shutdown, why the central bank should close the Bitcoin mining farm

Recently, the news about “China quietly ordered the closing of the Bitcoin mining farm” spread like wildfire. Some media learned through insiders that the central bank held a closed-door meeting to rectify some mines with irregular electricity consumption.

As a matter of fact, the rectification and disposal of the mines started last year, especially after the domestic exchanges were closed last year. The reasons for the mines are not sufficient, and the mines have not caused more social problems, and the risk points are not clear, so no specific arrangements have been made. However, all localities have received “window guidance”, that is, local enterprises cannot participate in digital currency mining.

In 2016, China’s power generation was the world’s largest, and the total power generation accounted for 25% of the world’s total. In this case, according to common sense, mining power in China is indeed a The most abundant, especially with the decline of China’s economic growth rate, its own wasted power resources are increasing.

The electricity of the power station cannot be stored, but if the electricity is converted into digital currency, it can be stored. In fact, if the excess power generation in China can be converted into Bitcoin for storage, it should be A most efficient way of production and operation. It is equivalent to using electricity to produce dollars, and it is a processing export method with the highest added value.

In addition, according to the historical development, most of the electricity in the future may be consumed by computers. This is a judgment I have made, and our generation can bear witness. In human daily life, the proportion of electricity consumption will be lower and lower. In the future, human beings will use digital and blockchain-based methods to solve various problems, and “mines” will only increase, not decrease. Especially with the development of artificial intelligence, cosmic exploration and other fields, the requirements for computing power will increase exponentially.

Electricity is just a kind of energy, just like a person, the place that consumes the most energy is not the limbs, but the brain. The human brain is a machine that works 24 hours a day, a person who likes to think, Its brain consumes 75% of the blood sugar stored in the liver every day, and oxygen consumption accounts for 20% of the body’s oxygen consumption. The more the brain thinks, the more glucose its neurons need.

When the electric light bulb was invented two hundred years ago, people thought that the best use of electricity was to light a light bulb. Where electricity is most effective in the future should be determined by the market.

Electricity is something that no one can see. Until now, it is difficult for many people to understand the mystery of its existence, but electricity has changed the world. Many virtual things often have greater influence than physical things. I think it is difficult for many people, including the government level, to figure out what “digital assets” mean to China and the world at this time. What we need to reflect on is that, apart from the four great inventions, electricity, light bulbs, telephones, computers, digital currency, etc., which are propelling mankind forward, how many of them were invented by China?

When a phenomenon appears, it is necessary to study the big background and big logic behind it. Future competition can be said to be military competition, economic development competition, financial competition, but it can also be said that, It is a competition of ideas and computing power. Closing mines is easy, stopping trends is harder.

『Ⅱ』Is it illegal to open a bitcoin mine?

Legal analysis: In China, bitcoin cannot be directly converted into legal RMB. And it is illegal to use bitcoin in our country. So mining is illegal. Bitcoin is a virtual currency that is not represented by a specific physical object, nor managed by a central or central bank. It exists in a blockchain. Peer-to-peer, in the form of one user sending to another user.

Legal basis: “Notice on Preventing Bitcoin Risks” 1. Correctly understand the attributes of Bitcoin

Bitcoin has no centralized issuer, limited total amount, and is not used in geographical areas. Four main features are restriction and anonymity. Although Bitcoin is called “currency”, it is not a real currency because it is not issued by the monetary authority and does not have currency properties such as legal compensation and compulsion. In nature, Bitcoin should be a specific virtual commodity that does not have the same legal status as currency, and cannot and should not be used as currency in the market.

“Three” Will the export customs of bitcoin mining machines check?

1. The customs will check the export of bitcoin mining machines. Hangzhou Customs seized bitcoin “mining machines” Illegal entry, Hangzhou Customs recently seized 3 sets of Bitcoin “mining machines” illegally brought into the country by passengers at the Yiwu Air Port. This is the first time that Hangzhou Customs has seized a Bitcoin “mining machine” at the Yiwu Air Port.
2. It is reported that on December 16 last year, a foreign tourist was wearing a black back.�. He pulled a large suitcase by hand and entered the country in a hurry from Yiwu Port, which attracted the attention of customs officers. When the customs officers checked the passenger’s luggage, they found that there were 3 sets of electronic devices similar to computer cases in his suitcase, with many chips and interfaces welded on them. After further verification, it was finally confirmed that these electronic devices were all Bitcoin “mining machines”, which were of great value. At present, the customs have temporarily detained the three bitcoin “mining machines” in accordance with the law and are conducting further investigations.
Extension information
1. 1. Bitcoin is a virtual currency generated by computer software calculation. Usually, there are two ways to get bitcoin: one is to download the software to “mine”, and the other is to buy it on the trading platform. As the ratio of bitcoin to US dollar continues to rise, and computer mining takes too long to obtain bitcoin and the success rate is low, most players choose more “professional” bitcoin “miners” to obtain bitcoin. On September 30, 2017, Bitcoin China has stopped all Bitcoin trading operations.
2. The low ebb of China’s mining industry made cryptocurrency miners turn to Quebec, Canada. Cryptocurrency mining is an energy-intensive process. High temperature will cause too much damage to equipment. The instability of the cryptocurrency market also requires stable political situation to minimize risk. Therefore, the cryptocurrency mining companies in the regulatory wind began to transfer to Quebec, Canada, which has low electricity bills, low temperature and stable political situation. Among them are many of the world’s top mining companies, and the demand from these customers has already accounted for a large proportion.
3. It is understood that the Bitcoin mainnet was launched in 2009, and the first Bitcoin block named Genesis was launched. Satoshi Nakamoto obtained the first batch of 50 Bitcoins through mining. It marks the beginning of the Bitcoin network and the official birth of Bitcoin.
2. There are two ways to mine Bitcoin:
1. Buying mining machines to build a mine, which requires a high cost, mainly for some big players who plan to invest in mining on a large scale. Due to the regulatory policies of the mines, it is more difficult to build self-built mines, and some small mines have been closed.
2. Look for a professional mining company to purchase mining machines for hosting business. Such companies mainly use mine hosting as a profit point, but all the management and maintenance of mining machines and site power supply are provided by them. It is enough to buy a mining machine and pay the corresponding electricity fee. Compared with the first point, the audience is wider. After all, large households account for a small number of people, which is equivalent to centralized mining by retail investors.

『4』 How can we prove that Bitcoin mining is legitimate?

It is not easy to prove that there is no direct supervision of mining farms at present
If it operates properly, the mining company you invest in will continue to operate, and you may get the expected income
If the operation is improper, the mining company you invest in goes out of business or encounters other problems, your investment will be more It’s dangerous

So be cautious about mining, there are many pits in it.

『Wu』 The central bank requires the bitcoin mine to be powered off. Is there a power shortage or something else?

In the middle of this month, with the strengthening of ICO and Bitcoin supervision, Bitcoin China, Huobi, OKCoin and other virtual currency trading platforms have successively announced that they will stop all virtual currency transactions at the end of September and the end of October. Currency trading business.
In recent years, the rapid rise in the price of bitcoin has driven a number of virtual currencies to rise in turn, which in turn has led to a large number of people following the trend and entering the market.
However, Bitcoin’s surge has also caused a lot of controversy. JPMorgan Chase CEO Jamie Dimon blasted bitcoin mid-month, calling it “a scam”. Recently, the legendary fund manager Mike Novogratz, who has sung many digital currencies before, changed his mind and said: “Bitcoin will be the biggest bubble in our life.”
The following is the full text of the Bitcoin China announcement:
Bitcoin China will close the digital assets and people’s bank recharge functions at 12:00 on September 27th, Beijing time.

Is it illegal to be a bitcoin mining machine?

As of July 24, 2020, the state has not issued any laws stating that bitcoin mining machines are illegal.

Bitcoin mining machine is one of the ways to get bitcoin. Bitcoin (Bitcoin) is a network virtual currency generated by open source P2P software.

It is not issued by a specific currency institution, and is generated by a large number of calculations of a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors. The decentralized nature of P2P and the algorithm itself can ensure that the currency value cannot be artificially manipulated by mass-producing Bitcoin.

(6) Bitcoin mining farm supervision extended reading

Bitcoin issuance and trading.�Completion is achieved through mining, which is minted at a determinate but constantly slowing rate. Each new block is accompanied by a certain amount of brand new bitcoins that are created from scratch, which is rewarded as a coinbase transaction to the miner who found the block.

The reward of each block is not fixed. Every 210,000 blocks are mined, it takes about 4 years, and the currency issuance rate is reduced by 50%. During Bitcoin’s first four years of operation, 50 new bitcoins were created per block. 12.5 new bitcoins are created per block. In addition to block rewards, miners also receive fees for all transactions within the block.

Reference source: Network-Bitcoin Mining Machine

『柒』 The Financial Committee of the State Council cracks down on bitcoin mining and trading! Is Bitcoin going to cool in China?

Our country can have a stronger and stronger awareness, and our country can also introduce more policies to combat the operation of virtual currency in our country, and our country can also Resisting virtual currency can punish more mining behaviors.

The relevant agencies of our country can perform their corresponding responsibilities, and they can also condemn more virtual currencies more severely. The Financial Committee of the State Council cracks down on Bitcoin mining and trading! Is Bitcoin going to cool down in China? I think Bitcoin is indeed going to be cold in our country. There are three main reasons for this:

First, there will be no market for Bitcoin in our country.

I think Bitcoin will indeed be cool, because our country can have stricter regulatory behavior, and I believe that in the near future, Bitcoin will definitely disappear in our country. Bitcoin will eventually become marketless. If we still want to invest in Bitcoin, we should make ourselves more aware that Bitcoin will definitely be cooler and will not be valued by our country.

The above is my opinion. Do you have any ideas?

『渌』Bitcoin mining farm reporting phone number

『厖』Where should a bitcoin mining farm be reported and reported, is there any reward

Our country only prohibits the circulation of bitcoins. It is your personal freedom and right to mine bitcoins with your own computer, just like playing games.
Reporting an individual mining bitcoin is not accepted. There is no reward.
Of course, there may be some rewards for reporting that kind of centralized mining. Because the compilation of China is very power-hungry, and there is no output.

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