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Why can’t the country stop mining

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Why can't the country stop mining

Why Can’t the Country Help Mining | Edited by Qin Xiaofeng | Produced by Hao Fangzhou

| Daily Planet Daily (ID: o-daily)

Why Can the Country Help Mining

After the implementation of the Economic and Information Technology Law of the Economy of China, the “illegal use” of virtual currencies such as Bitcoin and Ethereum will be strictly supervised. At the same time, the Notice on Preventing Financing Risks in Token Issuance (Yin Fa [2021] No. 37) will also officially take effect in the near future At present, China has made clear the relevant policies prohibiting the mining of cryptocurrency, including: severely cracking down on illegal activities such as ICO and IFO; Strengthen education and training on network information security technology; Resolutely resist enterprises and institutions that use computers and computing resources to carry out illegal and criminal activities. (China News, Publication, Radio and Television News) [original link]

Why the country does not prohibit mining

Today, under the leadership of the National Development and Reform Commission and the Central Cyberspace Office, the Opinions of the China on Several Issues of the Law of the People’s Republic of China on Combating and Dealing with the Speculation of Virtual Currency Trading was officially released. It mentions the ‘prohibition of Bitcoin mining’. This sentence means that the prohibition of Cryptocurrency related acts is a policy provision (the Notice for short) to protect the interests of investors, but in fact it is not, because it is not a mandatory prohibition or administrative regulation. Therefore, we believe that the focus should be on treating blockchain technology at the national level, not only focusing on the price fluctuations of digital assets, but also using more cost-effective technologies, rather than engaging in illegal fundraising activities such as financial fraud or money laundering, as some internet giants do So why can’t this government ban mining? That’s because it has several characteristics:

1. There is no clear definition of the relevant attributes of mining and other industries For enterprises, if they are engaged in virtual currency and related businesses, it is impossible to take regulatory measures, including but not limited to: issuing stocks; Selling futures contracts, foreign exchange brokers, etc Due to the anonymity and privacy of virtual currencies, they cannot be recognized and tracked 4. The equipment used in the mining process often generates a large number of data center failures and other issues, leading to power shortages

5. Through various methods, point-to-point transmission can be realized, and the normal operation of the whole process can be quickly confirmed, thus improving energy efficiency. But these are not true electronic information technologies, but refer to computer program code in the network, which is written by professionals responsible for computing work before generating corresponding databases, and then used for sending, receiving, storing various types of information and operations

In addition, at present, domestic enterprises that mainly focus on Bitcoin mining are mainly overseas. For example, Bitmain has said that it has the largest computing power in China, and it may also use this way to conduct business in the future.

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