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Nationalizing an industry… what could possibly go wrong.
https://www.criptonoticias.com/mineria/legalizada-mineria-bitcoin-venezuela-habra-pool-nacional/
https://www.criptonoticias.com/mineria/legalizada-mineria-bitcoin-venezuela-habra-pool-nacional/
TL;DR it is reported that Venezuela is creating a national Mining Pool. Miners that operate outside the government-run pool will be subject to infractions. i.e. they will be forced to join if they want to operate legally.
Venezuelan miners will make less money.
Mining Pools as narrow-focused, single-chain are coming to an end. They will be replaced by profit-switching pools and hash exchanges that yield higher returns per hash. https://hashrateindex.com/blog/end-of-the-mining-pool-era
Mining Pools as narrow-focused, single-chain are coming to an end. They will be replaced by profit-switching pools and hash exchanges that yield higher returns per hash. https://hashrateindex.com/blog/end-of-the-mining-pool-era
Venezuelan miners will have less access to financial services.
Mining Pools are increasingly being connected to financial services such as lending/borrowing, trading & hedging. Mining pools act as the bridge between the miners and these services. https://www.coindesk.com/bitcoin-mining-pool-poolin-blockfi-crypto-lending
Mining Pools are increasingly being connected to financial services such as lending/borrowing, trading & hedging. Mining pools act as the bridge between the miners and these services. https://www.coindesk.com/bitcoin-mining-pool-poolin-blockfi-crypto-lending
Venezuelan miners will be at risk of taxation/theft.
Given the mining pool controls miner payments they can easily collect additional taxes from miners or even freeze their funds. They may even eventually pay them out in fiat (petro) instead of Bitcoin for their compute power.
Given the mining pool controls miner payments they can easily collect additional taxes from miners or even freeze their funds. They may even eventually pay them out in fiat (petro) instead of Bitcoin for their compute power.
The Bitcoin network will be at risk of slight censorship.
Mining Pools decide which transactions are included in the block. The Government could censor transactions of people they feel are against the state, trying to skirt capital controls etc
Mining Pools decide which transactions are included in the block. The Government could censor transactions of people they feel are against the state, trying to skirt capital controls etc
Although this bill is real, we will see if it will/can actually be enforced. Also running a mining pool is tough just ask @NickHansen600...
Cc @theotoukou @guzmanpintos @BITVOLT7
Cc @theotoukou @guzmanpintos @BITVOLT7
