Topic: Bitcoin ecosystem’s weakness (Read 548 times)

The fluctuation of bitcoin price and the different transaction speed require people to be aware of network security, but there are many more people who do not know the existence of bitcoin.
But the Bitcoin system is constantly updated and developed.

This is the latest news from Kazakhstan and it appears that their government did not have the need to ban mining hehe. It was the miners that shut down their farms by themselves. I speculate in some areas in China, it would be a similar situation if there was no ban.

In any case, Kazakhstan‘s government is encouraging the miners to create an independent renewable capacity. This appears to be another chance for Tether, Bitfinex, iFinex to issue bonds and do another project similar to their geothermal energy project in El Salvador.



Mining in south Kazakhstan is no longer possible, Xive co-founder Didar Bekbau said.

Crypto mining company Xive shut down a 2,500-rig mine in South Kazakhstan due to lack of sufficient electricity supply from the national grid, co-founder Didar Bekbau told CoinDesk on Wednesday.

Kazakhstan has been grappling with electricity shortages, partly caused by an influx of crypto miners from China. The southern part of the country is particularly vulnerable as the region lacks abundant electricity generating plants and the national grid cannot reliably transfer electricity from the energy-rich northern region.

Crypto miners, like Xive and Enegix, have been facing electricity issues since September due to rationing from KEGOC, the national grid operator. KEGOC did not immediately respond to a request for comment.
Xive is preparing a new site for the over 2,500 machines, but “it is clear that mining in south Kazakhstan is not possible anymore,” Bekbau told CoinDesk.

Recently, the government said it wants to encourage crypto miners to develop independent renewable energy capacity. The industry hopes that after Kazakhstan expands its renewable electricity capacity in the next one-two years, the limit might change, Sapar Akhmetov, chairman of the board of the Kazakhstan Association of Blockchain Technology told CoinDesk.

Source https://www.coindesk.com/business/2021/11/24/crypto-miner-xive-shuts-down-south-kazakhstan-mine-due-to-electricity-woes/

After the last halving, and if you can check updated news about mining farms, you should had been notified about how many small farms shut down their mining activities and some had just changed the whole concept of the company. Mining is already reserved for some big companis an few solo miners who should have hash power of one of those companies to get benefits from their activities.

China dislikes decentralization as a whole.
They didn't go this only with Bitcoin but there's another huge firm owner of China who launched a payment system and faced huge problems by the Communist party. There are things that are out of your control in china and many other nations they want to lead the people in a certain way and dislike the idea of their control being challenged by any Payment Gateway Or Bitcoin.

So it's natural they ban it.

No one should convince you that the government will be completely in support of Bitcoin mining someday. The government loves to be in charge of what ever their citizens do and would always like to know how much of it is in circulation and who owns which and since it's becoming a challenge to keep stock of this in Bitcoin they are trying hard to track down the mining process so they can get a fraction of regulation on Bitcoin. If the high power consumption on Bitcoin mining can be reduced I think we would help curb this challenge

Whatever the government does will always side with fiat because of their own interests with the alibi of protecting the public from scams.  In the future, it will be difficult for people to do mining with restrictions on mining permits which will certainly be issued by the government.  Another thing, I think in the future this mining can only be done by the government and certain people, because here it has a very large profit.  Even if the government is aware.

I believe if the potential advantages for HODLing Bitcoin is truly understood by these countries with “dirt cheap” electricity, the government themselves would be setting up their own mining farms. The advantages will be understood, after realization that the inflation seen all around is irreversible.

It won't affect us we can see what was happening with the banning of bitcoins in China, it didn't give a change to the flow of the market and that's what they have really wanted to make. They wanted to cause something outrageous that will ruin the economy of the crypto market. But as we can see, a powerful country like China can't do anything with it. so what about Sweden? they can suggest what they want, at the end of the day we are the ones who will take benefit from it.

People are said to become poor because they make bad decisions. What do you think, is there any truth in that?


Definitely a bad call. Instead of going with your gut, use your brain next time.

Bitcoin is really just a popular shitcoin , that’s all nothing more. It’s similar to many other coins which have been classified as shitcoins because they aren’t popular. Even though some have good projects

You said something about if they are able to ban Bitcoin or regulate it in the Europe, then that means that bitcoin’s ecosystem is weak?In a way that seems accurate, and the community should look into it. This is Bitcoin mining that we’re talking about here, and the government trying to ban it. These days cryptocurrency is being mined by big companies, because it has gotten difficult to the extent that it cannot be mined by individuals just in their homes.

So, now we have to rely on big companies, and these companies in most countries they have to obtain a permit from the government to be able to run this kind of huge operation that will consume lots of energy. So, it’s always easy for the government to track down these companies and shut them down if they want to.This is like a fault in Bitcoin and it kind of weakens the system, because the government is able to shut down the mining companies. Maybe if it were still easy for individuals to continue mining it from the comfort of their homes, then it wouldn’t have been like this.

Bruh...
You realize your article is older than mine?  
The crisis came after that, not the other way around.
Also again, you're showing me the so-called proof, and guess where that leads to:
Just 3 messages ago you told me:


Now you quote an article that mentions the PM saying:


Also:


So again, who am I going to believe, one prime minister and one energy minister...or you?
Nope, not going to happen.

I never claimed it will be increased overnight! Considering the electricity production has nearly doubled over the past 4 decades in Iran, another 35% increase specially now that Iran's nuclear program is not limited anymore and new plants are being opened up, is not that big.

Well you could use google. The dispute over payment is a very long one. Just 3 days before the export cut, Iraq was "promising" to pay long overdue payments which they didn't pay until the export stopped. I don't know where the dispute is at right now.
This is not the first or only case either. e.g. In 2020 it was "gas bill" https://www.bloomberg.com/news/articles/2020-12-27/iran-and-iraq-to-discuss-unpaid-bills-resuming-normal-gas-flows
There are more cases of export cuts as the unpaid bills pile up.

FYI Iraq is currently withholding $6 billion of Iran's money.

Actually all 3 incidents was about Iran and all 3 also involved some of the "toys" you mentioned which is why I brought it up.

Ofcourse. Sometimes I wonder why much attention has been paid to the bolded part. In my opinion, clustering lots of miners on one or few places happened so quickly and at the wrong time. It could be considered a single point of failure.
The Bitcoin Network should be encouraging properly distributed/decentralized mining to help in securing the Network. Once a Network is losing is decentralization, you could be right if you think it's becoming less secure. By the way, other Blockchain Principles are affected once a cryptocurrency start losing it's decentralization.

The only reason centralized organizations/companies appear safe is because we don't know much about what they do in secret, and they are kind of protected or are not too bothered by governments once they are licensed

Sweden's planned ban on Bitcoin mining in the European Union is not a weakness of the Bitcoin ecosystem, all of this is simply because Sweden is weak in making regulations that accept bitcoin and Sweden may deliberately ban cryptomining so that Bitcoin prices can fall.

Bruh...


And again as in the last months, you want me to believe a random guy on the internet and not an official statement by the spokesman of that country. Sorry, but how about no!  


Let's leave the whataboutism out of it, ok?
I'm so tired of this I don't feel like even discussing it one bit.
If we talk about Iran we talk about Iran, not about the US, not about Trump not about Disney.
It doesn't matter if anyone else is lying also, that doesn't make you better one bit.

You are just focusing on that short lived issues (about a month or two) I mentioned in my other comment instead of the whole picture. For example here is recent news about increasing the output by 30000 MW.

Besides during this time some of the exports were ceased or decreased because of lack of payment (despite what the article said). Iraq wasn't paying because it was afraid of "maximum pressure" campaign (lol) also in the east US had just fled Afghanistan and there was chaos over there since nobody was really in charge and didn't have access to the funds to pay.

Well every government lies or exaggerates about all kinds of stuff, Iran isn't an exclusion. But that doesn't mean just because of one lie, everything else is BS.
For example US Marine Corp were supposed to be tough not cry their hearts out when they stared down the barrel of a gun. Or EWR, SAM, THAAD, etc. were supposed to work not stand impotently when the BMs came. Or the AUDS were supposed to see those "toy invisible planes" but they still haven't succeeded in tracking a single one of those that are circulating above their head 24/7. I can go on

https://www.tehrantimes.com/news/462877/Iran-nearly-zeroes-electricity-exports-amid-surging-domestic



I find it really hard to believe your number of 20GW when the energy minister is saying stuff like this!  

And they could boast about producing anything, they always do shit like this, from their toy invisible plane to every space-age weapon they've invested, when it comes to reality is stuff like that above that happens. It's like Russia building every year something that would be a killer for western technology, from cars to planes to smartphones.

I don't know about Kazakhstan but Iran's short lived electricity problems had absolutely nothing to do with bitcoin miners. Additionally Iran has a lot of spare capacity that has made the country a big exporter of electricity. For example about 25% of Afghanistan (Iran's eastern neighbor) is provided by Iran. There were talks of increasing exports by 400 MW to Pakistan (another neighbor in the east). Same thing in the west with Iraq and Syria.
There are also either smaller amounts exported or exports were for a couple of years to other neighbors such as Turkey, Armenia, Turkmenistan, Azerbaijan.

To say that Iran was caught off guard just because of a tiny increase in electricity usage from miners is just silly. The electric company announced 3 days ago that Iran can increase electricity export by 20000 MW.

Possibly, but you wind up in the situation that parts of the US have had. Once conservation methods were put in place when fuel prices dropped the demand took years to get back where it was.
There are several amusement parks in the US with massive solar farms and battery storage. During the hottest days of the summer they are using a fraction of the grid power that they used to.
When natural gas prices dropped and the additional generation / distribution capacity could be built for a good price. It was at a much smaller scale. Which kept the price of the gas down since less was used.

Same with other forms of generation. Wind is 2.5x the solar capacity in the US. (Not counting home rooftop solar) Why, because there are many areas where the wind never really stops during high demand. When gas was down, they kept building wind farms. Not because they were cheap, not because they had an economic advantage over gas fired plants, but because these places had suffered through gas price spikes (power price) and would rather pay a little more all day every day then worry about tomorrows price being 2x todays and the day after being even more.

We are seeing that here in parts of upstate NY, pay more every day but not give a crap about gas price since it's all hydro power. If the water stops flowing downhill it means gravity is broken and we all have bigger problems :-) This is also why a lot of mining operations are moving to NY [pre-built data centers that are no longer in use is the main one by far] But, power that although expensive by comparison to other places, is really not going to vary much in price since it is hydro.

So yeah, Russia has pulled the ramp up the gas prices more then once. It could be this time it could be next time it could be the time after that. But sooner or later it's going to be, "Nah, keep your gas we're good"

 -Dave