Even if you are finally able to wrap your head around what cryptocurrencies like bitcoins are about, bitcoin mining is a different scenario altogether. Even the Bitcoin owners are not very aware of this idea, but that doesn’t make a difference about how important it is. Bitcoin mining is the process which helps the cryptocurrency work as it is intended to. And helps in producing Bitcoins to digital wallets all across the world.
What is Bitcoin mining ?
To define it accurately, bitcoin mining is the process which helps to add transactions conducted via bitcoin to public ledger. Cryptocurrency mining, specially
Bitcoin Mining, is not very easy to understand from the given definition. “Miners”, as they are called, purchase powerful computing chips, specially designed for this purpose, and use them to run specifically composed software all day and night. This software pushes the system to solve complicated calculations, as the minors dig through layers of ground, and if everything goes as per plan the miners are rewarded with some Bitcoins for their effort.
The process itself is very risky. Along with the heavy lifting from the mining chips, it requires loads of electricity, powerful cooling system and smoothest network connection. What makes Bitcoin mining not so desirable is that the reward at the end is not guaranteed. So whoever is undertaking the job, must not take it lightly.
Is Bitcoin mining legal ?
The legal status of Bitcoin obviously varies from country to country and still remains undefined and changing in many of them. Most of the countries have not made Bitcoin itself illegal, but its value as a status of money varies with changing regulations. While some countries have openly given permission for its use, some are still not comfortable with the idea. Different government agencies, departments and courts have approach to Bitcoins differently.
Now coming to Bitcoin mining, in most countries like North America and most of Western Europe bitcoin mining is totally legal. The government even provides regulatory framework to serve protection and basic oversight.
It has been observed that in some countries, Bitcoins are treated as asset or property and not as currency And just like properties, bitcoins are protected with legal protections. There are only a few exceptional countries which have not made bitcoin mining legal yet.
Why Bitcoin mining is considered illegal in some places ?
The reasoning varies from jurisdiction to jurisdiction. In some countries the idea of Bitcoins are totally misunderstood. The people believe it’s like counterfeiting money, making fake duplicates, which is not true at all. Bitcoin is like a new currency altogether.
Others consider bitcoins as a major threat to national currencies. Some governments even feel that Bitcoins are undermining the state power, and hence the government, as they are offering non-state currency.