August 04, 2021

Should Chinese Bitcoin miners move to the world and the United States should welcome it with open arms?

Featuring Yaya J. Fanusie

Source: Voice of America

Journalist Wei Zhi

Since May this year, the Chinese government has severely cracked down on Bitcoin trading and mining, causing Bitcoin miners to have to look elsewhere. Including the states of Florida and Texas in the United States, they all hope to attract Chinese Bitcoin miners to settle down with cheap electricity. However, experts worry that in addition to short-term economic benefits, not only will the mining of mine owners not bring long-term economic benefits to the local area, but may also bring hidden dangers to the law and the energy environment.

What is Bitcoin mining?

Bitcoin mining is the process by which new bitcoins enter the circulation, and it is also a process of verifying transactions and avoiding "double payment". It generally requires the use of high-efficiency computer equipment, which is named after its working method similar to mining minerals. Since the Bitcoin economy is decentralized, it uses a distributed database composed of many nodes in the P2P network to confirm and record all transactions. A computer (mining machine) with a specific chip and software installed carries the work of verifying transactions, and provides an algorithm for the Bitcoin network in exchange for the opportunity to obtain Bitcoin rewards.

Read the full story and more from Voice of America.

Authors

  • Yaya J. Fanusie

    Adjunct Senior Fellow, Energy, Economics and Security Program

    Yaya J. Fanusie is an Adjunct Senior Fellow at the Center for a New American Security (CNAS). His research focuses on the national security implications of cryptocurrencies an...