Mining on the farm: how farmers are breaking the law in pursuit of cheap electricity

Date:

2018-06-03 16:30:07

Views:

3127

Rating:

1Like 0Dislike

Share:

Mining on the farm: how farmers are breaking the law in pursuit of cheap electricity Source:

In pursuit of profit, small private mining farm and large enterprises often overstep the law. Due to the fall in the capitalization of cryptocurrencies compared to the end of 2017, the miners are trying to cut costs — and for this ready to various tricks and cunning. Tell how the owners of farms in the United States, China and South Korea, bypassing the established restrictions in an attempt to earn.

the

mining on the farm

In several regions of South Korea, the so-called zones of advanced development, farmers pay for electricity at reduced tariffs. The government, in turn, strictly controls those who are illegally using deductions and impose fines on violators.

on may 19, the police of the province of Ken-Ki detained five entrepreneurs, who under the guise of farming engaged in the mining of cryptocurrencies. The miners rented a couple of farms and within a year was mined Bitcoin and Live with low expenses.

a Similar case occurred in the province Paju — five miners mined the cryptocurrency in the company, which were given for a plant for the production of semiconductors. The factory area of nearly thousand square meters worked 1580 ASIC miners, which served 40 people. According to police, the owners of the equipment earned in mining cryptocurrency around 300 thousand dollars for 8 months.

Now in South Korea there are no laws that allow to punish entrepreneurs for mining in the areas of advanced development. Rather, the arrests are not followed by any serious sanctions businessmen expect only small fines for hiding the real activity. However, the police appealed to the Ministry of land, transport and Maritime Affairs to develop and approve laws forbidding miners to locate production in areas with cheap electricity.

the

Restrictions on extraction in the US

In the US, miners business are also not the best way — at the end of March, they were forbidden to place the farm in upstate new York, the city of Plattsburgh, which is famous for cheap electricity.

Local deputies imposed a moratorium on the adoption of the law on the placement of mining cryptocurrencies on the territory of the municipality for a period of a year and a half. If miners decide to open in Plattsburgh farm, they will have to pay for electricity extra thousand dollars a day in fines for illegal mining.

Another example is the ban on the use of devices for mining in Brooklyn after a complaint from Telecom operator T-Mobile. According to the company, ASIC miners are one of the farms on the territory of this district of new York, created a disturbance on the 700 MHz, which is owned by T-Mobile. In the end, the local regulator has written to the owners of the mining enterprise the requirement to stop work for 20 days.

the

mining in China

Officially, the government still had not imposed a ban on mining — the mining of cryptocurrencies allow energy suppliers to sell excess, who can not spend households and other companies. Recently, however, the publication CNLedger published an excerpt from the decision of the Chinese authorities, which limits the production of coins in special economic zones with cheap electricity.

regulators are turning to local departments to report on the number of companies in the production of cryptocurrencies and to take steps to limit their work on the territories of priority development.

now the miners will have to fork out three countries that provide the lion's share of the capacity of the world's mining cryptocurrencies gradually restricting access to cheap electricity. This situation may lead to the withdrawal of small players from the market — mining costly just won't bring enough money for profit.

However there is another scenario — the miners can move production to countries where restrictions on the consumption of energy do not exist, and electricity is inexpensive, regardless of the location of production and activity. Their list is presented .

Recommended

Co-owner Bitcoin.org Coinbase Pro ridiculed and called a stock exchange Scam

Co-owner Bitcoin.org Coinbase Pro ridiculed and called a stock exchange Scam

co-Owner Bitcoin.org and most popular forum about cryptocurrency Bitcointalk.org Cobra called Coinbase Scam Pro trading platform American crypto currency exchange Coinbase. In his tweet he wrote «if you read Coinbase Pro backwards, get the word ...

The Ethereum is a cryptocurrency Scam. A new report Chainalysis

The Ethereum is a cryptocurrency Scam. A new report Chainalysis

When people learned how to create a new cryptocurrency and began to build their infrastructure like marketplaces, in the field began to appear and fraud. According to blockchain auditor Chainalysis for the past two years, fraud in the ecosystem has s...

VEB and the Grozny mayor's office transferred the housing sector on the blockchain

VEB and the Grozny mayor's office transferred the housing sector on the blockchain

In February, the first Deputy Chairman of VTB Olga Dergunova positively the prospects of the blockchain. According to her, the technology will improve the speed of transactions and security standards. To move from words to action the Corporation took...

Comments (0)

This article has no comment, be the first!

Add comment

Related News

Time spares no one: as are the 10 largest altcoins of 2014

Time spares no one: as are the 10 largest altcoins of 2014

Eight of the ten largest in 2016 cryptocurrency exchanges fell back below or in the list in trading volume, and their place was taken by the new company. Now let's see find out how to change the indicators altcoins that were in th...

EOS price increased after the launch of minneta. Honest if this growth?

EOS price increased after the launch of minneta. Honest if this growth?

early In the week analysts Vulcan 360 security code coins EOS critical vulnerability. The vulnerability could allow remote malicious code and therefore provide complete control over the network nodes. It was quickly eliminated, ho...

Estonia cancels plans to launch a national cryptocurrency

Estonia cancels plans to launch a national cryptocurrency

the Reason for the cancellation of the country's plans to release Estcoin was the criticism of the President of the ECB, Mario Draghi. Development of possible ways of integration of the crypts in a public process was conducted fro...

Below will not be: experts predict the growth of Bitcoin prices

Below will not be: experts predict the growth of Bitcoin prices

After the looming threat of falling Bitcoin price finally rebounded from the support level just above $ 7,000. Analysts of Fundstrat Global Advisors declare that we will not see significant discharges of course of crypts in the ne...

The first mobile wallet in the network Lightning Network appeared on Android

The first mobile wallet in the network Lightning Network appeared on Android

the First Bitcoin wallet with full support for Lightning Network appeared in Google Play on may 31. App Lightning Wallet is a fully working Lightning-Noda, which provides on-chain and off-chain transactions in the network. It is r...

Nobel laureate: smart contracts Ethereum useless and vulnerable

Nobel laureate: smart contracts Ethereum useless and vulnerable

In early may, a prominent economist and Professor at new York University's Nouriel Roubini that all the talk about decentralized digital money— "just nonsense", and the blockchain is a "publicized an Excel spreadsheet". Now a crit...

In the Netherlands, will create a laboratory for the study of the mining of cryptocurrencies

In the Netherlands, will create a laboratory for the study of the mining of cryptocurrencies

the Dutch data center ITB2 created a laboratory of mining Bitcoin and Ethereum. The new Department will test the impact of blockchain technology on the global electricity consumption and infrastructure. the a Study of Bitcoin mini...

Why Bitcoin will live when you die Visa and Mastercard

Why Bitcoin will live when you die Visa and Mastercard

Representatives of payment systems VISA and Mastercard often criticized by the cryptocurrency. The main arguments unnecessary electricity expenses miners and a small transaction throughput. For example, the Ethereum network of 20 ...

To what level will rise Bitcoin? The forecast of the trader

To what level will rise Bitcoin? The forecast of the trader

the Last three days, Bitcoin behaves relatively smoothly. The maximum rate of coins made 7682 dollar, and the minimum — 7361 dollar. Capitalization during this period jumped from 125 to 131 billion dollars. Opinion on the current ...

What will happen to Bitcoin exchange rate after halving in 2020? Version analysts

What will happen to Bitcoin exchange rate after halving in 2020? Version analysts

Bitcoin mining unprofitable due to the falling exchange rate of the coin — the profit of the owners of the farms exceed the costs only 6 percent, mentioned in the March study Fundstrat. And although analysts promise the growth rat...

Do startups: Binance will create an investment Fund of one billion dollars

Do startups: Binance will create an investment Fund of one billion dollars

the First volume of trading the crypto currency exchange has announced the creation of a private investment Fund, said . The new organization will be used Binance for large investments in the bitcoin and blockchain startups. the E...

You can not win, lead: the Central Bank can create his own cryptocurrency

You can not win, lead: the Central Bank can create his own cryptocurrency

currently, the cryptocurrency is considered a serious threat to banks. They can just put them out of business. Dong Hae, Deputy Director of the Department of foreign exchange markets the International Monetary Fund, insisted on th...

Customers complain of problems with Antminer B3. What's wrong?

Customers complain of problems with Antminer B3. What's wrong?

Under a barrage of criticism came last ASIC Antminer B3. Chinese customers complain about inaccurate information in the advertising of goods and poor service quality control Bitmain. Recall that the issued equipment is designed sp...

The end of may: the highest growth and the most rapid fall of cryptocurrency

The end of may: the highest growth and the most rapid fall of cryptocurrency

outside the window already not may. Many sighed with relief, because the month was not very easy for the holders of the cryptocurrency. The most popular coins were showing terrifying fluctuations. Thanks coincodex of the top 50 co...

It's about time: the Estonian company has filed a lawsuit against Pavel Durov

It's about time: the Estonian company has filed a lawsuit against Pavel Durov

a Successful ICO Telegram attracted to the company a lot of attention, and it's not only the investors but also fraudsters. Latest fake sites and tried to make money by selling tokens. Piece of cake now wanted of the company Pavel...

Mastercard will implement the blockchain in their loyalty program

Mastercard will implement the blockchain in their loyalty program

In mid-April payment system Mastercard to hire 175 developers, among whom were specialists in a distributed registry. New employees will create a more efficient payment solutions, including on the basis of the blockchain. A month ...

India refused to buy the national cryptocurrency of Venezuela, despite substantial discount

India refused to buy the national cryptocurrency of Venezuela, despite substantial discount

the Government of India rejected the proposal of Venezuela to use their cryptocurrency, reports . Despite the tempting discount of 30 per cent of the Indian authorities refuse to trade, backed by Petro. the El Petro Cryptocurrency...

What if I know nothing about Bitcoin and don't want to understand?

What if I know nothing about Bitcoin and don't want to understand?

People know absolutely nothing about Bitcoin and don't want to know. For many years it was debunked many myths, misunderstandings and lies that surrounded Bitcoin, but still have people completely ignorant, who openly admit in the...

Japanese gamers will receive a reward in bitcoin

Japanese gamers will receive a reward in bitcoin

the Japanese gaming Corporation GMO Internet Inc. announced the integration of the application on the blockchain in their services, reports . The program CryptoChips will reward players for achievements and new records. the a Rewa...

The power of the blockchain: a startup Block.one attracted more than $ 4 billion of investments

The power of the blockchain: a startup Block.one attracted more than $ 4 billion of investments

the Project Block.one gathered about four billion dollars during the ICO, said . This success eclipsed even the most popular public offering of shares on the traditional markets. At the same time Block.one still no working product...