Cryptocurrency Craze Among People Be Contained Or Even Regulated

 

Bitcoin 

Bitcoin appeared on the market on January 12, 2009, with the first transaction awarding a software developer 10 bitcoins. At that time, the combined value of the ten coins was $0. Within two years, the value of each Bitcoin hit $1; today, one bitcoin is valued at ~$55,000. Analysts forecast that a single bitcoin (BTC) could be worth over $100,000 – or even as high as $1,000,000. 

It takes about four years to mine 210,000 blocks; that milestone triggers a financial halving. 


Why is bitcoin mined?

Even though you can’t physically see or touch a BTC, the mining process has an arguably and equally large and negative impact on the environment. Significant resources, including electricity (where the bulk is purportedly fossil fuels versus renewable sources) and water for cooling, are essential for the computing power required to “mine” the bitcoin. At the dawning of the bitcoin era, computer enthusiasts could easily mine it. However, today’s efforts require sophisticated and massive computing server farms to make the endeavor profitable.


How to regulate something like that?

Mining is essential as it serves as a check and balance on the currency being traded. Trades valued at $1,000 or less require a single confirmation; trades up to $10,000 require three confirmations, and trades larger than that require six or more confirmations. Miners effectively track and authorize transactions to make it difficult for hackers to attack, alter, or stop the trades. More miners equal more security.

China’s latest move

China banned its banks from handling cryptocurrencies, but trading continued. The new ban, issued in September 2021, provides the strongest language yet. Perhaps the ban was issued to clear a path for The People’s Bank of China to release their electronic yuan to facilitate cashless transactions that can be tracked. And taxed accordingly. Comparatively, the US has recently stated that it has no plans to ban crypto.   

Regulating crypto does seem like a cat and mouse game. Each month, new cryptocurrencies are coming online. Despite their volatility, investors are attracted by the convenience of bitcoin, no need for paper documentation, lower transaction fees versus credit cards.


To know more about the crypto trend visit the website Shield.  

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