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South Korea: $26.170 per Bitcoin. Mining

20 July 2018 13:07, UTC
Diana Asadova
Mining has been a major way to get cryptocurrency for several years. However, digital finances remain a new branch of the economy and there are no clear (and, especially, global) regulatory statements. In some places it makes miners happy while in others they have to fight the government.

In Bangladesh, Nepal and Kyrgyzstan crypto is officially illegal and causes punishment. The Malaysian government declared that cryptocurrency is an illegal mean of payment. Well, it was everything they said, paying no attention to the other financial operations. Noone has restricted mining, so… is it possible to mine? The Court of Malaysia does not think so. In January 2018 the police raided two miners’ headquarters. They accused people in illegal turning a residence into an office and causing a fire hazard. Neighbours also complained about a noise and disorderly conduct of the site’s tenants. Wile Malaysian miners are paying for all their offenses, the Central Bank of the country is working on more concrete legislation which  class digital currency exchanges as reporting bodies under Anti-Money Laundering and Anti-Terrorism regulations.

The Chinese story is quite ironic: the first country to develop cryptocurrency has turned to be strictly regulated. Such words as “blockchain” and “ICO” are forbidden here. Of course it makes sense for miners - nobody wants to be repressed by Chinese governments. However, there are more brave entrepreneurs who continue working in China. Thus, China is still the world mining leader. The reason is simple: low electricity costs and and extensive coal supplies (its burning energy is also useful for mining). However, the Chinese government is going to restrict usage of electric power. But a miner can get out of everything! Many Chinese miners are replacing their farms to Canada, which is friendly to new technologies (for instance, blockchain usage in government researches). Moreover, renewing energy in Canada is not expensive. Of course, Hydro Quebec is unable to provide the whole float of miners with electricity but Canada will do its best while has step on the path of innovations.

Leaving the market China gives place to Japan which laws are getting more loyal to the digital economy. Electricity costs in the country are high, however, it is possible to fight them. Locally. Japanese city Kazuno is trying to attract companies to use its renewable energy. It is interesting that, blaming the lack of opportunities in their own country, the Japanese are launching a farm in Estonia which has got a status of the most hostile to Bitcoin EU countries.

Nevertheless, every country is perfect for miners from South Korea there one Bitcoin costs $26.170.

American governments decided to make it easier and give all the states freedom of choice. Following the ratification of a March 19 moratorium, miners have to pay a fine for electricity stealing. The proposed fees can amount from $5,000 to $10,000 (according to the place of a transaction). However, Washington restrictions are not for everyone, thus, New York, Arizona, Maine, Nevada and Vermont are blockchain friendly states.

The inflation in Venezuela made many residents of the country turn to digital finances. Thankfully electricity costs are mild here. One Bitcoin mining costs only $531 here - it is the lowest rate in the world. Moreover, the president of Venezuela Nicolas Maduro banks his own cryptocurrency “petro”. Volunteer miners, co-working with the government, are paid by stable cryptocurrency (instead of the weak bolivar) and a transaction fee. Although cryptocurrency operations are legal, police arrests miners. And that is the problem. Officially they are accused of unauthorized usage of sources (plus money laundering and terrorism, of course). Nevertheless, entrepreneurs believe that the real matter is a threat to bolivar which the government finds in mining.

It was the first material from the series dedicated to the global mining environment. BitNewsToday.com is in the topic and follows the up-to-date news, thus it is to be continued.

Image: calendar-ico.com