Investigation report on virtual currency mining activities

1.

mining is a nickname for the exploration method of acquiring bitcoin. Because of its working principle is very similar to mining minerals, so named. In addition, bitcoin explorers who do mining work are also known as miners

bitcoin network generates new bitcoin through "mining". In essence, the so-called "mining" is to use computers to solve a complex mathematical problem to ensure the consistency of bitcoin network distributed accounting system

bitcoin network will automatically adjust the difficulty of mathematical problems, so that the whole network can get a qualified answer about every 10 minutes

then the bitcoin network will generate a certain amount of bitcoin as a reward to reward the person who gets the answer

extended data:

to be a miner, just "mine" bitcoin and search for 64 bit numbers by computer. By repeatedly decrypting with a computer, it competes with other gold miners to provide the number needed for the bitcoin network

if the computer can successfully create a set of numbers, it will get 25 bitcoins. Bitcoin is decentralized. It needs to create a fixed number of bitcoins per unit of computing time. It can get 25 bitcoins every 10 minutes

by 2140, the upper limit of bitcoin in circulation will reach 21 million. In other words, bitcoin system can be self-sufficient, which can be translated into coding to resist inflation and prevent others from sabotaging< br />

2. Reason: with the rapid development of information technology, real money is far from meeting people's demand for capital flow. If there are enough people to recognize the value of a virtual currency, it may become a substitute unit of material exchange, and the existence of virtual currency will inevitably cause another upsurge in the financial sector
in view of the possible risks of virtual currency, many international organizations and central banks have responded publicly to the supervision of virtual currency system. These responses can be roughly divided into four categories: warning and risk warning, supervision and registration permission, legislative norms, and explicit prohibition
(1) warning and risk warning
some central banks and regulators have issued risk warnings against the special currency and virtual currency system. The federal financial regulatory authority of Germany, the Bank of France, the central banks of the Netherlands and Belgium have issued public warnings against the possible money laundering and terrorist financing caused by the use of bitcoin. In the report released at the end of 2013, the European Banking authority (EBA) warned consumers of many risks of virtual currency, such as exchange loss, e-wallet theft, unprotected payment, price fluctuation and so on. Although Spain did not have a similar risk warning, it issued a timely information announcement related to virtual currency
(2) supervision and registration license
generally speaking, international organizations believe that the supervision of virtual currency should find a balance between risk prevention and innovation promotion. Since 2012, Sweden has required transactions related to virtual currency to be registered with financial regulators. Other countries pay attention to qualification supervision, so as to make it indirectly meet the requirements of prudential supervision. In other countries, the regulation mainly focuses on the business model of virtual currency transaction. The financial prudential regulatory authority of France regards the provision of bitcoin circulation and trading services and the act of earning funds in the process as a payment service and requires the authorization of the government. In addition, some countries focus on the intermediary institutions related to virtual currency. The German federal financial regulatory agency and Danish regulators believe that the provision of intermediary services for virtual currency needs to be authorized< (3) legislative norms
at present, some countries have proposed legislation to regulate virtual currency transactions. Canada plans to legislate to allow the government to supervise the transaction of bitcoin, and to include the transaction of more than US $10000 into the scope of suspicious supervision. The United States hopes to adjust the relevant legal structure should be compared with the development of the special currency. In order to make the Bank Secrecy Act (BSA) applicable in the context of network, the financial crime enforcement network (FinCEN) of the U.S. Department of the Treasury issued the explanatory guidance on the behavior and subject definition of private generation, holding, distribution, trading, acceptance and transmission of virtual currency in 2013. The European central bank stressed that it should strengthen international cooperation under the existing legal framework, and regulate virtual currency from the European and global level under the existing legal framework. More countries believe that bitcoin is not a currency in circulation, has no legal status, and does not meet the definition of financial instruments, such as Finland, Sweden, Malaysia and Indonesia
(4) it is forbidden
in some countries, bitcoin related transactions are prohibited. In December 2013, the people's Bank of China banned financial institutions from trading in bitcoin, which was subsequently extended to payment service providers. The central banks of Thailand and Indonesia share the same attitude. The circulation of anonymous internet currency (including bitcoin) is prohibited by the Russian judicial inspection department as a substitute for currency. The Central Bank of Russia has earlier included the provision of bitcoin services in the scope of suspicious transaction monitoring. The U.S. Securities and Exchange Commission (SEC) has banned the issue of unregistered shares in exchange for bitcoin, and unregistered online securities trading activities in virtual currency.

3. This is done intentionally by the platform. If the coins are mined by users' wallets, there will be less money in the hands of the platform. Users may throw money at any time, and the cost of the platform to raise the price will naturally increase. This is not what the operators of platform and Shanzhai coin want to see. The plates of these coins are generally small, and users will subscribe for some of them
however, it is recommended that users invest in bitcoin, Ruitai coin and Laite coin, which are digital cryptocurrencies with market depth, and the risk is relatively small. For other Shanzhai coins without market depth, the platform may run away at any time, and users may become disk takers at any time.

4. There must be radiation from virtual currency mining, including mobile phones and computers, not to mention mining
mining is a process of consuming computing resources to process transactions, ensuring network security and keeping everyone's information synchronized in the network. It can be understood as the data center of bitcoin. The difference lies in its completely decentralized design. Miners operate all over the world, and no one can control the network. This process is called "mining" because it is similar to gold panning, because it is also a temporary mechanism for issuing new bitcoin. However, unlike gold panning, bitcoin mining provides rewards for services that ensure the safe operation of payment networks. After the last bitcoin, mining is still necessary
now POS coins don't need to be mined, most of the new coins are POS coins, and Ruitai coins don't need to be mined either.

5. At present, in addition to bitcoin, most of the other virtual currencies are not used in the market. They are pure speculation, and the price is not as stable as stocks. Moreover, some virtual currencies are not open source, which is pyramid schemes
Mining requires a lot of graphics cards and consumes a lot of power resources. The bitcoin pool itself is nearly exhausted, and other coins have no mining value. It is likely that the coins g out will not sell a single electricity bill, resulting in a lot of waste of resources
finally, virtual currency trading is prohibited in China, so the risk of hyping virtual currency is too high, so it is normal for mining to be included in the eliminated instry

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7.

Recently, bitcoin and Ethereum's two major digital currencies have gone up and down, which has led to a new upsurge in mining. However, the waste of electricity in mining has also become a hidden danger. Inner Mongolia officially announced today that all virtual currency mining projects will be closed at the end of April. The development and Reform Commission of the Inner Mongolia Autonomous Region recently issued the "on ensuring the completion of & lt; The fourteenth five year plan; It is planned to comprehensively clean up and shut down the virtual currency mining projects, withdraw all of them before the end of April, and prohibit the construction of new virtual currency mining projects. Inner Mongolia has set the goal of double control of energy consumption in 2021, that is, the energy consumption per unit GDP will decrease by 3%, the increment of energy consumption will be controlled at about 5 million tons of standard coal, the growth rate of total energy consumption will be controlled at about 1.9%, and the energy consumption per unit instrial added value (equivalent value) will decrease by more than 4%. The consultation period is from February 25, 2021 to March 3, 2021{ RRRRR}

according to 2020 data, the power consumption of a single bitcoin transaction is equivalent to that of a British family in the past two months. According to researchers at Cambridge University, bitcoin consumes about 121.36 billion kilowatt hours (TWH) of electricity a year, which is unlikely to decrease unless the value of bitcoin declines

How big is

121.36 billion kilowatt hours (TWH)? By comparison, bitcoin's annual power consumption exceeded that of Argentina, the Netherlands and the United Arab Emirates, and approached that of Norway. Enough to see, the virtual currency mining project is really electricity consuming

8. No, it's all reasonably calculated, and judging whether it's deflation or inflation is not based on whether the total amount of money is decreasing or increasing, but on whether the overall price level is falling or rising.

9.

On February 25, the development and Reform Commission of Inner Mongolia Autonomous Region issued the "on ensuring the completion of the & lt; The fourteenth five year plan; Several safeguard measures for al control of energy consumption (Draft) (hereinafter referred to as "several measures") are open to the public for opinions{ RRRRR}

a mine owner who has built a mine in Inner Mongolia said to the surging news: & lt; Now it's time to limit energy consumption, and we haven't received the notice to close it& rdquo;

"several measures" can be regarded as the continuation of Inner Mongolia's many years' efforts to clean up the virtual currency mining. Inner Mongolia is sparsely populated and rich in wind energy. Because of abundant land and cheap electricity price, Inner Mongolia has become a virtual currency mining destination; Main positions; One

the virtual currency mining instry was also included in the list of eliminated instries. On April 8, 2019, the national development and Reform Commission issued the guidance catalogue for instrial structure adjustment (2019 version, draft for comments), which defined the virtual currency mining as an item not marked with the elimination period or elimination plan, which was explicitly or immediately eliminated by the national instrial policy. In November, the national development and Reform Commission issued the guidance catalogue for instrial structure adjustment (2019 Edition), which was originally listed in the list of eliminated instries; Virtual currency mining activities & quot; Was deleted

although some people think that this change may mean that the legitimacy or possibility of virtual currency mining has been recognized, judging from the contents of the announcement issued by Inner Mongolia Autonomous Region, the direction of its liquidation and withdrawal has not changed