Bitcoin Minnig Future in Disarray..

kingjan (53)in #bitcoin • 6 years ago (edited)

2018-01-11 12.15.49.jpg

China is closing down on Bitcoin mining.

Regulatory authorities taking steps to centralise cryptocurrencies and departments of government taking action to stop cryptocurrency trading in several countries South Korea and China also crackdown the Bitcoin mining industry. There is no good news for Bitcoin anymore Bitcoin has received another below last week China has started to crack down the Bitcoin mining industry Bitcoin mining is not allowed in China.

Bloomberg reports:

Chinese authorities outlined proposals this week to discourage bitcoin mining — the computing process that makes transactions with the cryptocurrency possible. Officials plan to limit the industry’s power use and have asked local governments to guide miners toward an “orderly” exit from the business, people familiar with the matter said [...] Miners have until recently flocked to China because of the country’s inexpensive electricity, local chipmaking factories and cheap labor. They now have little choice but to look elsewhere.

Cryptocurrency mining is a computerized process in which the transaction rule on the blockchains are confirmed by the miners these data plans are distributed on the blockchain and the miners using their computers and specific software is tried to crack the code by solving that block they confirm the transaction by writing it on the blockchain. As the new cryptocurrency is maintained the difficulty of the blocks increases does the high powerful computing power is required to solve these complicated mathematical problems. With the result which consumes whole a lot of energy power. By solving these blocks and the confirmation of transaction on the blockchain, transaction are paid to the miners in terms of Bitcoin or the particular currency they are currently mining. The difficult mathematical computations required user computing power. Specialised hardware is used to mine Bitcoin calledusing specialized hardware (called ASICs) . In the beginning block solving reward was around 50 BTC which reduced to 12.5 BTC and expected to fall Fall More to 6.5 BTC. This requires thousands of ASICs devices connected and devoted for Bitcoin mining. Countries where electricity is cheap this is trending today everyone is trying to get something out of Bitcoin. Which has raised the increase of electric power in countries such as China the power consumption has Rose more than 200% within past few years, thanks to the Bitcoin miners huge amount of electricity is consumed every month by professional mining hardware.

If China is not allowing anyone to mine Bitcoin so the transaction validation will become a problem in the future this might have a huge effect in the long run on the Bitcoin.

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6 years ago in #bitcoin by kingjan (53)

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svkrulze (52) 6 years ago

I think there is both positive and negative news doing the rounds. Several govts I think will take negative steps towards Bitcoin and other cryptoes in the short term, in the long term we will have to wait and see

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kingjan (53) 6 years ago (edited)

Yes you are right , bitcoin may have a diminishing future in my humble opinion. .

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jerrybanfield (74) 6 years ago

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