Bitcoin Forum

In dealing with "waste electricity", we can see that the advantages of bitcoin mines are very obvious. However, some policy makers are also worried that a large number of mines will trigger bitcoin speculation. The author believes that bitcoin as a new format, there are indeed advantages and disadvantages, this time should also be divided into two points of view.
First of all, after various types of virtual currency issuance and financing as well as non-standard and speculative activities, the Central Bank conducted an emergency containment and banned domestic ICO and transactions. It has largely cut off speculation from the source.
In contrast, after digging out digital currencies, the mine also trades overseas to obtain foreign exchange. The large amount of new funds flowed back to China for consumption and investment, boosting domestic consumption to a certain extent but did not bring speculation in the country.
Second, mine operations do need to be standardized in terms of taxation, environmental protection and electricity. Otherwise, the spread of a large number of small-scale mines will also lead to some unexpected situations.
Of course, policymakers here can choose to regulate or choose to follow market rules. After all, there are a large number of new mines in the United States, Canada and Iceland, and more foreign enterprises and individuals have entered the digital currency mining industry. As the total excavated quantity is determined and diminished, personal benefits will naturally decline, and the hot market conditions will also return to rationality.
At present, bitcoin has been approved by many developed countries such as the United States, the European Union and Japan and is also forbidden in some countries. Its future development trend seems to be positive and negative. Regardless of Bitcoin and the digital currency itself, the mining industry can to a certain extent the perfect solution to the big problem of "waste electricity" without any crisis.
Why does not policymakers give some space? As the central report said, "make the market play a decisive role in the allocation of resources?" Otherwise, the relocation of Chinese mines to Russia, Canada, Iceland and the like, which have the same problem of waste electricity, will result in the tax and wealth being overwhelming. This is a great waste of resources.