Governments should rather profit from Bitcoin

KingdomHearts

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Quote from: smyslov on September 02, 2017, 06:25:19 PM

If they are going to do that it means they are accepting Bitcoin and welcoming crypto currency in their country which they don't want to do because it is a direct competitor to their local currency which they can control and they do not have control in crypto currency.

Yes may be they can, but fir this the governments of all the countries should accept and legalized the bitcoin as a digital crypto currency. And they will have to prevail bitcoin in the county. By doing this they should abandoned the paper currency.

The first profit is that, they will not need paper for currency printing and a huge number of staff for this purpose, and the rest one can imagine by himself.

audaciousbeing

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Quote from: Kprawn on August 29, 2017, 10:11:34 AM

We have seen this latest news --> https://www.rt.com/business/401183-russia-power-plant-crypto-mining/ and we also know

the Chinese are doing something similar to subsidize their local Bitcoin miners, by selling surplus power to them. Why has

other countries with surplus energy, not capitalized on this?

Countries with surplus electricity --> https://en.wikipedia.org/wiki/List_of_countries_by_electricity_exports

Why do they not invest in some mining farms to compete with the Chinese? The USA can manufacture ASIC's in Silicon Valley

and go head-to-head with the Chinese ASIC manufacturers.

I cannot see how it can be less profitable than selling your surplus energy at much lower rates to neighbouring countries. Roll Eyes

One reason that I know why the Chinese government has been in the news lately and at the same time exercising their influence over bitcoin is because they have taken their time to really understand how it works, identify its strength as well as weakness in which they are exploiting. So, in other for countries to really allocate more power as you have said then profit from it, then they also must set in motion the process to having adequate knowledge on the matter that concerns bitcoin. Over here, there are situations of government making power excessive for manufacturing industries because they know the impact of what they contribute to the economy even at the expense of others who needs the power. If only governments can understand the potential that investments in bitcoin have to offer, I am sure they will take it up.

yugyug

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Quote from: Kprawn on August 29, 2017, 10:11:34 AM

Why do they not invest in some mining farms to compete with the Chinese? The USA can manufacture ASIC's in Silicon Valley
and go head-to-head with the Chinese ASIC manufacturers.

In terms if Research and Development for ASIC miner design, California's Silicon Valley is unbeatable this is whee the haven of talented designers and coders. In terms of manufacturing, Chinese is unbeatable due to their cheap labor even Apple Inc. preferred China over U.S. because it is too costly to manufacture iDevices compared to China. So if ASICs where manufactured in the U.S. margin of profitability is too thin. Cheap labor and cheap electricity are the key factors why China dominates the Bitcoin mining industry.

marky89

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Quote from: crismass1225 on September 11, 2017, 05:35:40 AM

regarding of leasing a excess electricity to miners i think it is a good Idea if the government will jump in, it is another source of income of the state or a country if they lease some excess electricity to miners who needs it.

In theory, they could make agreements to subsidize mining operations in return for a cut of the block rewards -- particularly if we are talking about surplus electricity, as is the case in China. I think we all know that within the next couple of decades, governments will be stockpiling cryptocurrencies just like they do with gold. They will need to hedge.

Well, that's the dream, anyway. Tongue

crismass1225

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do you forget that the government dont take a risk when it comes to investment they really want to know if it is profitable and good enough in their nation for long term or not. Bitcoin mining is taking a risk and lots of electricity consumption, if the bitcoin will crash all the machine that government buy will be useless. Maybe if bitcoin will stabilize its value their will be a chance that the government will put their shoes on it.

regarding of leasing a excess electricity to miners i think it is a good Idea if the government will jump in, it is another source of income of the state or a country if they lease some excess electricity to miners who needs it.

SvenBomvolen

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I was reading on news that China's neighbor Russia do something similar. Representatives of big Russian mining farms are asking such giant as Gasprom and Lukoil to afford them electricity by cheap prices.
I think such inside mining is a good idea for development of all the economy of the country. The Government cannot print fiat nonstop to make people richer and to afford them an opportunity to spend more money, developing the economy that way. So mining farms in this point are source of working places and extra money in wallets of citizens.

Juggy777

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Quote from: Kprawn on August 29, 2017, 10:11:34 AM

We have seen this latest news --> https://www.rt.com/business/401183-russia-power-plant-crypto-mining/ and we also know

the Chinese are doing something similar to subsidize their local Bitcoin miners, by selling surplus power to them. Why has

other countries with surplus energy, not capitalized on this?

Countries with surplus electricity --> https://en.wikipedia.org/wiki/List_of_countries_by_electricity_exports

Why do they not invest in some mining farms to compete with the Chinese? The USA can manufacture ASIC's in Silicon Valley

and go head-to-head with the Chinese ASIC manufacturers.

I cannot see how it can be less profitable than selling your surplus energy at much lower rates to neighbouring countries. Roll Eyes

Currently not all governments are agreeing to seeing Bitcoin as a legal currency and even globally it's not accepted as one, some countries treat Bitcoin as as illegal way of finding money to terrorists and it could harm a country global economy image, then if they would sell it wouldn't the existing electricity holders companies also demand exemptions. Plus there are not many countries who have cheap electric rates.

prtty2gal2

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Quote from: smyslov on September 02, 2017, 06:25:19 PM

If they are going to do that it means they are accepting Bitcoin and welcoming crypto currency in their country which they don't want to do because it is a direct competitor to their local currency which they can control and they do not have control in crypto currency.

I think it depends on the government policy about bitcoin that what they will plan when the bitcoin prevails in their country. The governments should think of the people of their country and rather that making profit from bitcoin.

If the government hold bitcoin and after some time sell it on high price then definitely they will get profit from bitcoin. And it will also a good sign for a strong economic state.

smyslov

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If they are going to do that it means they are accepting Bitcoin and welcoming crypto currency in their country which they don't want to do because it is a direct competitor to their local currency which they can control and they do not have control in crypto currency.

Janation

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Quote from: Franky00 on September 02, 2017, 06:12:03 PM

While they do not recognize it, they do not get any benefits. but they will find ways to get their interest. The only way this will affect further development of the crypto currency.

They do not recognize it? But still find a way to their interest? That is confusing. I think the governemnts know bitcoin and what it might do, the fact that they do nothing of it is maybe because they are waiting for something, they are doing something or they just don't care.

Franky00

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While they do not recognize it, they do not get any benefits. but they will find ways to get their interest. The only way this will affect further development of the crypto currency.

TheGodson

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If the US government worked very hard to own Crypto currencies they could end up being able to afford a lot of things in the budget. The fact that the Chinese government is getting involved could end up making them the new world power of the world. That would be quite sad for all of us living in the US, because we like being on top. I think it also is a good thing to do as a backup. If Bitcoin fails then the US loses a bit of money. If it succeeds then the government will be able to pay a lot of its debts and finish things off that it can't afford.

BillyBobZorton

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Quote from: Kprawn on August 29, 2017, 10:11:34 AM

We have seen this latest news --> https://www.rt.com/business/401183-russia-power-plant-crypto-mining/ and we also know

the Chinese are doing something similar to subsidize their local Bitcoin miners, by selling surplus power to them. Why has

other countries with surplus energy, not capitalized on this?

Countries with surplus electricity --> https://en.wikipedia.org/wiki/List_of_countries_by_electricity_exports

Why do they not invest in some mining farms to compete with the Chinese? The USA can manufacture ASIC's in Silicon Valley

and go head-to-head with the Chinese ASIC manufacturers.

I cannot see how it can be less profitable than selling your surplus energy at much lower rates to neighbouring countries. Roll Eyes

You just can't expect governments to try to profit from it, the first phase of any technology that challenges the status quo is to ban it, so we are still going through the "they fight us" stage. I think we will eventually see some sort of "official ban on bitcoin".

Hopefully, the government is smarter than that and they try to profit from it in a way that doesn't obstacle its development.

hatshepsut93

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Overenthusiastic support for cryptocurrencies might hurt fiat and banks, and since they are so big, even losing 1-2% would hurt more than profits from mining, at least in short term. The cost of manufacturing miners also makes it risky for governments, because if Bitcoin will crash, all that equipment will be useless, and governments really don't like doing high risk investments. They might jump in when BTC will grow bigger and stabilize though.

Captimiz

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Quote from: Kprawn on August 29, 2017, 10:11:34 AM

We have seen this latest news --> https://www.rt.com/business/401183-russia-power-plant-crypto-mining/ and we also know

the Chinese are doing something similar to subsidize their local Bitcoin miners, by selling surplus power to them. Why has

other countries with surplus energy, not capitalized on this?

Countries with surplus electricity --> https://en.wikipedia.org/wiki/List_of_countries_by_electricity_exports

Why do they not invest in some mining farms to compete with the Chinese? The USA can manufacture ASIC's in Silicon Valley

and go head-to-head with the Chinese ASIC manufacturers.

I cannot see how it can be less profitable than selling your surplus energy at much lower rates to neighbouring countries. Roll Eyes

Something like that might conflict with their policies. But if it doesn't, then I think it can be a great investment if they are mining as they can benefit from economies of scale that typical individuals would simple not be able to. Only large organisations can.

chennan

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I would feel like they wouldn't want to do this because it will give legitimacy to crypto currencies... which obviously it would be way more in their interest to keep the public opinion to be that only fiat currency is the "legitimate" one... especially when they officially wage the war on cash.

DRVX

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Quote from: Kprawn on August 29, 2017, 10:11:34 AM

Why has other countries with surplus energy, not capitalized on this?

In my opinion still not so much people knowing about cryptocurrency. And especially people that sitting in government - adult generation.
Anyway just need time and now this crypto fever will infect all world Roll Eyes

Kprawn

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We have seen this latest news --> https://www.rt.com/business/401183-russia-power-plant-crypto-mining/ and we also know

the Chinese are doing something similar to subsidize their local Bitcoin miners, by selling surplus power to them. Why has

other countries with surplus energy, not capitalized on this?

Countries with surplus electricity --> https://en.wikipedia.org/wiki/List_of_countries_by_electricity_exports

Why do they not invest in some mining farms to compete with the Chinese? The USA can manufacture ASIC's in Silicon Valley

and go head-to-head with the Chinese ASIC manufacturers.

I cannot see how it can be less profitable than selling your surplus energy at much lower rates to neighbouring countries. Roll Eyes

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