In several countries, bitcoin is not a currency but considered a property or an asset. People may ask: “Is it legal in mining bitcoin?”. If you reside in North America or Western Europe, it is not only legal in mining bitcoin but also legal to own one. In a few nations, it is illegal to mine and possess the cryptocurrency.
Mining Bitcoin is the method of adding documented transactions to a public ledger in the BTC network. The blockchain technology organizes the transactions in blocks called the blockchain. Every time a bitcoin transaction occurs it affixes up to the public ledger.
The process of mining bitcoins refers to the new blocks of transactions made. When a block reaches its completion, it adds up to the blockchain or the transparent ledger. Computing of algorithms by computer processors achieves the creation of a block.
As time goes by, computing for blockchains grows more difficult, requiring more time and energy consumption. Every four years, the system limits the creation of a block to half its produced number making it more difficult and consuming more time and resources.
At the onset of the BTC phenomena, Mining bitcoins achieve the maximum number of blocks to up to 50 units. Block creation went down to 25 with the same effort, time, and resources after four years. Today, it dipped to 12.5 blocks. The limitation of block creation makes it even more difficult for bitcoin availability in supplying the market. The difficulty is a factor that pushes up the value of bitcoins in the market.
Ways to Mining bitcoins
In the early days of the bitcoin, one way to mine for BTCs is by the use of a computer with the aid of a powerful microprocessor. Lesser processors cannot achieve in mining bitcoins.
The present method of mining bitcoin is by the use of tools called the mining rigs. These are equipment specially designed to solve computer algorithms needed to form blocks for the creation of the bitcoin cryptocurrency. Rigs have 100 times the capacity to mine bitcoins compared to older methods due to the performance of the Custom Bitcoin ASIC chips that is dominating the mining bitcoin industry.
Mining equipment like the Antminer S7, the AntMiner S9, and the Avalon are the most common type of machines available for mining bitcoin. The tools respectively produce bitcoins depending on their speed and power consumption.
For the mining bitcoin economy, the activity should be efficient so as to save time and money. Algorithms should have the least consumption of energy for the mining rigs and to solve the algorithms as quickly as possible.
Despite the positive effect of the bitcoin industry, other countries see it as a threat to their financial stability.
These are the countries that (seem to) ban the bitcoin:
■ Bangladesh – The government of Bangladesh is not comfortable with Bitcoin’s lack of a central payment system. Authorities that such setup could harm people using the cryptocurrency.
■ China – The Chinese government prohibits banking entities and its employees from engaging in bitcoins. Mining bitcoin is totally legal in China; it is only in the banking sector that BTC has an ordinance to ban its mining and possession.
For the ordinary Chinese, it is legal to trade with the crypto money.
■ Ecuador – The government of Ecuador truly justifies its ban on mining bitcoin and engagement with the cryptocurrency as it is in the building process of its electronic cash system at the national level. The government opts to protect their new currency which has a link to the US dollar than by the destabilization of digital money. The country does not want a cryptocurrency competing against its own.
■ Bolivia – The Central bank of Bolivia says that it is illegal to use a currency that is not under the control of the Bolivian Government or any controlling authority. Hence, mining bitcoin and its possession follow suit.
■ Iceland – The Central Bank of Iceland has an existing law that bans the digital money. Buying bitcoins using the local kroner may break the regulation of the “Icelandic Foreign Exchange Act.” The Act indicates that no Iceland currency leaves the country. The measure is to protect the currency and the Icelandic struggling economy, but Iceland allows mining bitcoin.
■ Sweden – The Government of Sweden bans the bitcoin in the buying and selling of scrap and waste material s. Banning of the BTC applies only to this area of business.
■ Russia – Bitcoin mining and practice is still not allowable in Russia; you can go to jail for the offense. It also protects its local ruble currency in its rebound. Other currencies, digital or not is not welcome as of the moment i Russia.
■ India – It is a general policy in India that the original bank that used to serve the BTCX in the country suspended its bitcoin services. It was not clear why the bank refused to accept the crypto money but it is happening all over India. Despite the bad remarks, India has no present legislation that bans mining bitcoin and the use of it.
■ Thailand – Bitcoin mining, business, and trading still goes on in the country despite the ban issued last July 29, 2013. The government banned bitcoin due to lack of existing laws that support it but somehow, it still managed to continue to operate.
■ Vietnam – The government of Vietnam outlawed the use and practice of BTC in bitcoin mining, business and trade for the reasons that it encourages criminal activities and a big risk to investors. Since the transactions hide the identity of the senders, Vietnam sees the use of BTCs as avenues for crime such as money laundering, tax evasion, illegal payments, and drug trafficking.
Steps for Mining Bitcoin
• To start mining bitcoins, you will have to buy the mining hardware designed for this purpose.
• Once you have the hardware, download the free bitcoin mining software.
• To run the software, you will need a special program for it to run. The most downloaded programs for the bitcoin mining software are the BFG and CG miners that are command line programs. If you want an easier way that goes with a Graphic User Interface (GUI), download an Easyminer and go Windows, Android program or Linux. The mining bitcoin software connects you with the other miners and the bitcoin pool.
• Once the software is working smoothly with the hardware, join a mining bitcoin pool. The pool is a group of bitcoin miners cooperating in solving the algorithms presented to create the blocks and share the rewards derived from it. Without these group of bitcoin miners, you may not earn one after a year of mining bitcoin.
• Open a digital Bitcoin wallet. You will need this facility for your BTC deposits from the mining bitcoin activities. Your wallet receives your mined bitcoins through a special address assigned only to you. Bitcoin wallets have a two-factor authentication that makes it secure from hacking threats or hiding the address in a computer that is offline from the internet.
• Follow the updates on Bitcoin News. It is important to stay updated on your bitcoin trading activities. You can view your profits from mining bitcoins, trading, or investing in it.
The acceptance of bitcoins is now prevalent in paying for goods and services online. It is more convenient to use this cryptocurrency as it is fast and charges less compared to credit cards and wire transfers.
One of the service providers that use the cryptocurrency is the online betting companies that provide online wagering to online players. Bigbook.ag accepts the Bitcoin in its online betting business as it is free from the control of any financial regulator. The site welcomes bitcoin gamblers with its bitcoin payment option facility giving more benefits and savings to bitcoin account holders.
With the benefits that big book.ag offers to its new online bitcoin bettors, the site provides pleasant betting experiences to its gamblers. The best service will increase the number of wagering patrons to the site which will add more profits and revenues to the business.