What is holding back ?
===============
After China, India’s central bank warns:
Beware of bitcoin
Over the weekend, it
was China’s central bank. Then, on Tuesday (Dec. 05), the Reserve Bank of India
(RBI) warned investors against betting on bitcoin and other cryptocurrencies.
The Indian central bank, however, was more
straightforward, “…cautioning users, holders and traders of
virtual currencies (VCs), including Bitcoins regarding the potential economic, financial, operational, legal, customer protection, and security-related risks associated
in dealing with such VCs.”
The RBI’s Dec. 05 release reiterated the concerns it had
raised twice before in December 2013 and February 2017.
In India, besides the
RBI, the government, too, has made public its discomfort with bitcoin.
On Nov. 30, finance minister Arun Jaitley said India does not recognise virtual currency
as legal tender.
Earlier this year, a
committee set up by his ministry had reportedly recommended banning crypto-currencies over fears that they could be used
to launder money and perpetuate frauds.
Other opponents of
Bitcoin are :
China shut down bitcoin exchanges and banned initial coin
offerings.
Meanwhile, rallying past all warning signs, bitcoin is
at a record high, having crossed the $12,000 mark today (Dec. 06).
Yet, crypto-currency
exchange operators remain unfazed.
“If
India had to ban virtual currencies, they would
have done that by now. In the last three years, the RBI’s
statement has been the same: They are uncomfortable with it and people should
invest at their own risk,” Vivek
Steve Francis, CEO of Coinome, a crypto-currency-trading exchange, told Quartz late last month.
====================================================
But , I am sure that if Shri Jaitleyji knew the following fact about
the “ process of mining “ of bitcoins , he would rush to President Kovind ,
with an ordinance to ban bitcoin mining / trading , in India :
“Today, each bitcoin transaction requires
the same amount of energy used to power nine homes in
the U.S. for one day.
And
miners are constantly installing more and faster computers.
Already,
the aggregate computing power of the bitcoin network is nearly 100,000 times larger than the
world’s 500 fastest supercomputers combined.
The total energy use of this web of hardware is huge —
an estimated 31
terawatt-hours per year.
More
than 150 individual countries in
the world consume less energy annually.
And
that power-hungry network is currently increasing its energy use every day by about 450
gigawatt-hours, roughly the same amount of electricity the entire
country of Haiti uses in a year “ .
If
India does not ban Bitcoin – and fast - , it would consume all of that 100 GW of Solar Power that we are targeting to
commission by 2022 !
100 GW, just to satisfy the GREED of some ( holders of BLACK MONEY ? ),
who want to multiply their illegal wealth , a 1,000 times by 2022 !
For
an over-simplified explanation of Bitcoin, read :
07
Dec 2017
www.hemenparekh.in / blogs
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