Crypto-friendly versus crypto-apocalyptic

Miami Mayor Francis Suarez explained that the city gates are open for bitcoin miners fleeing China. Cryptocurrency mining is an energy-intensive process for creating new tokens and updating the digital ledger. More than half of all miners currently stationed in China have started a mass exodus from internal reasons to areas such as Sichuan, a region rich in low-cost energy generated by an advanced hydroelectric system that aims to welcome these workers again. of the bit, if only for the induced market and wealth they can generate. A market that is also of interest to some US states such as Texas where the Senate has recently discussed the Virtual Currency Bill. That is a law that establishes a legal framework around investments in bitcoin and cryptocurrencies. In an article for the National Law Review, Daryl Roberston and Patrick Boot write: “The Virtual Currency Bill provides a clear and concise framework for establishing how control over virtual currency occurs and makes it clear that control can be established regardless of whether the possibility to exercise it is shared with another person, which is essential for banks and other non-bank financial institutions to effectively provide custody services for virtual currencies. ”Returning to Miami, Mayor Suarez told CNBC that he had not personally received any calls from Chinese miners, but to be willing to make available to them the cheap nuclear power available in the city: “We want to make sure that our city has the opportunity to compete. We are talking to many companies and we are simply telling them: Hey , we want you to be here. ”The mayor of Miami is also considering a mix of other incentives, such as d in business areas specific to cryptocurrency mining, areas where companies are offered tax breaks, infrastructure incentives and reduced regulations to encourage investment and create jobs. After all, miners just need to find a place and the cheapest source of energy to increase their profit margins, and Mayor Suarez has over time proved to be one of the most crypto-friendly politicians in the United States. El Salvador has become more than friendly, the small Central American country that is the first in the world to legalize a cryptocurrency. The operation, once the law comes into force, aims to regularize the purchase of goods and the payment of taxes and bank loans in cryptocurrency, as well as any other transaction, with the bitcoin-dollar exchange rate set by the market. Conversion of bitcoin into other currencies would not be subject to capital gains tax, according to the law approved by President Nayib Bukele’s New Ideas party. which cryptocurrencies are “an investment in nothing” and “are already illegal because the printing of money is considered an activity of counterfeiters, punishable” by the law. Cryptocurrencies are, in essence, instruments defined as “a market craze that creates very strong risks”. Savona complains about the tolerance that arises from the fear of “a risk of capital flight” given that “we now have 4500 cryptocurrencies in circulation in the wallets of families all over the world”. The Consob president reiterated “money can only be public” and a solution can come from the fact that “central banks are moving in that direction”. The much-discussed principle of anonymous transactions guaranteed by cryptocurrencies has also been questioned recently. Eswar Prasad, a professor at Cornell University, recalled in an interview with CNBC that earlier this month, US law enforcement officials recovered 2.3 million in bitcoins paid to a criminal cyber group involved in the ransomware attack. in May to oil supplies. The FBI said its agents were able to identify a virtual currency wallet used by hackers to collect payments: “The main idea of ​​bitcoin was to provide a pseudonym. But it turns out that if you use a lot of bitcoin, and especially if you use bitcoin to get real goods and services, eventually it becomes possible to link your address or your physical identity to your digital identity. “

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