What is Cryptocurrency and Crypto Mining

What is Cryptocurrency and Crypto Mining

What is Cryptocurrency?

Cryptocurrencies are Digital/Online cash. It does not have a physical existence
like banknotes and coins, but exists purely as a digital entry in an online database.
The database is simply a collection of numbers and letters protected by a password,
hence the name cryptocurrency.
Cryptography is a method of encoding and decoding information that can
only be read and processed by the members participating in the transaction
with the correct public and private path.

Unlike traditional currencies, cryptocurrency is decentralized, which means it is
created, stored and processed outside the confines of a central bank or government.
Therefore, cryptocurrencies avoid any interference from government agencies
or financial institutions. Traditional financial models often control individuals'
access to their own funds.

Few people realize that Bitcoin was the first and most valuable cryptocurrency

Cryptocurrencies other than Bitcoin

Cryptocurrencies other than Bitcoin, also known as altcoins and altcoins are partly
generated with reference to the ideas, principles, and source codes of Bitcoin, and
are similar to Bitcoin. There are more than 800 kinds of cryptocurrencies.
in circulation.

From February to April 2017, the total share of altcoins in the total cryptocurrency
market increased from 15% to nearly 40%.

What is Crypto Mining

A study published online by the British "Nature Sustainability" on the 6th pointed out
that the energy cost of cryptocurrency mining is almost equal to or more than
equivalent physical metal mining.
Cryptocurrency is a type of digital currency that uses cryptographic principles to ensure
transaction security and control transaction mediums created by transaction units.
In the context of cryptocurrencies, "mining" refers to a competitive activity that requires
computers to perform intensive computations to determine new transactions and add
them to the currency's public ledger - otherwise known as the "blockchain" ".
The first computer to successfully complete such an operation earns the new currency.
So not only do cryptocurrencies have real-world value for online transactions or
consumption; at the same time, computers also incur real energy costs as they race
to create these currencies.
$1 worth of cryptocurrency created between January 1, 2016, and June 30, 2018,
according to calculations by Oak Ridge Institute of Science and Education scientists
Max Krause and Seibert Torremart The average energy consumption of Bitcoin,
Ethereum, Litecoin and Monero is 17, 7, 7 and 14 megajoules, respectively.
The researchers compared this to mining $1 worth of different metals, including
aluminum (122 megajoules), copper (4 megajoules), gold (5 megajoules),
platinum (7 megajoules). Comparing the energy cost of rare earth oxides (9 MJ),
it is found that the energy cost of cryptocurrency mining is comparable to or greater
than that of physical metal mining, except for aluminum, and this cost will vary with
cryptocurrency usage. , purchases, and the number of mining people increase.
In addition, team members estimated that the CO2 emissions from cryptocurrency
mining during the period they studied were between 3 million and 15 million tons.

National Policies

India ________________________

In February 2022 news, in India, cryptocurrency transactions are not illegal activities,
the country's government will tax virtual asset transactions at the highest.
“Cryptocurrencies are in a gray area.” T. V. Somanathan, secretary of the Indian Ministry
of Finance, said in an interview with the media that buying and selling cryptocurrencies
is not illegal, and India has now developed a relevant tax framework to equate crypto
assets with other speculative transactions such as horse racing. treat. A tax rate of up to
30 percent on cryptocurrencies could partially dampen domestic transactions in India.

U.S. _________________________

On May 16, 2022 (EST), SEC Chairman Gary Gensler said at the 2022 Financial Industry
Regulatory Authority (FINRA) Annual Meeting that the SEC and the Commodity
Futures Trading Commission (CFTC) are developing a A document will stipulate the
division of labor between the two to supervise cryptocurrencies.
Previously, the SEC had jurisdiction over securities, and the CFTC was responsible
for overseeing the U.S. commodity and derivatives markets. Whether the two have
the power to regulate digital currencies and which agency to regulate has sparked
many debates.

EU __________________________

In June 2022, the European Parliament announced that the EU has reached
an agreement on anti-money laundering Policies for cryptocurrencies, which means
that the savage cryptocurrency market will face stricter Policies. Policies require
cryptocurrency companies, such as exchanges, to obtain and retain information
on cryptocurrency traders, if required by regulators in an inquire.

Related Events

On May 26, 2021, it is reported that the "Philippine Star" website published
an article titled "The Rumor of "Death of Cryptocurrency" is overstated.
The article believes that cryptocurrencies will definitely not disappear, and analyzes
the problems faced.
On November 23, 2021, the Indian government said that India is seeking to introduce
a cryptocurrency regulation bill at the winter session of the parliament to ban all
private cryptocurrencies.

On January 12, 2022, Pakistan’s SAMAA TV reported that the State Bank
of Pakistan and the federal government have decided to ban the use
of all cryptocurrencies, according to a report submitted to the
Sindh High Court (SHC) during a hearing in a case concerning digital currencies.

In 2022, Binance announced that Binance France SAS has been approved by the
French Financial Prudential Supervisory Authority (ACPR), becoming
the world’s first major cryptocurrency exchange registered in France.