Miners are part of the cryptocurrency ecosystem who are responsible not only for the emission of the first cryptocurrency but also for the security of the network, including its resistance to 51% attacks.
Now, miners are at risk of being outlawed.
Recently, there was the news on the Internet that the National Development and Reform Commission of China (NDRC) announced a bill that outlines the industries that the government needs to either support, restrict or ban. Mining cryptocurrency in this document is called "undesirable industry" and offered to ban.
The following question arises: what awaits mining in the future?
An Impartial View on the Events in China
As you know, the People’s Bank of China first banned ICO, as well as trading with cryptocurrencies. Since then, 88 cryptocurrency exchanges have been closed in the country, as well as 85 ICOs have been stopped their operation.
Next, there was a second blow. Officials attributed mining to ‘undesirable fields’, offering to ban it. In their opinion, the extraction of cryptocurrency is ‘unsafe production related to the excessive use of resources and having a harmful effect on the environment’.
China has been recognized as one of the key markets for cryptocurrency in the world, as 80% of the world's mining capacities were produced in the country which is facilitated by geographical proximity to the leading manufacturers of devices for the extraction of cryptocurrency and low electricity tariffs. A large number of farms are located mostly in southeastern regions of China, which are rich in hydropower resources.
Now, representatives of many Chinese companies are thinking about placing high capacity equipment in other mining-loyal countries. This list includes the USA, Iceland, Norway, and Russia.
However, each jurisdiction of the country has its own pitfalls. For example, last year in Norway there was a conflict between local authorities and one of the mining farms. According to officials, the farm had a lack of the necessary permits. In addition, one local resident promised to get rid of the company, which, in his opinion, makes a lot of noise. A few months later, the country's authorities deprived the miners of privileges, obliging them to pay for electricity at much higher rates.
In general, a lot of countries, following the example of Norway, do not want to get involved in mining. China launched a number of events, as since cryptocurrencies occupy an important niche in the financial world, mining has a negative effect on the economy as a whole.
Therefore, let's face the truth: it is only a matter of time when mining will be outlawed in a lot of countries of the world.
EDC Mining Based on the Masternode - a Legal and Beneficial Method
Thanks to the development in the market, mining based on the masternode is a unique solution. Masternode is a kind of pool to which users donate their coins, thereby allowing the node to mine EDC and to bring profit to all participants of the fund. It captures the volume of coins and provides network security during the implementation of important functions, such as instant confirmation of transactions, as well as network voting.
The EDC coin mining is as simple and effective as possible. You need to donate your coins to the masternode. You do not need to keep your personal account open, waste resources and conduct daily transactions. The masternode will start mining and automatically distribute profits among users in proportion to their contribution. As a result, everyone gets their share in proportion to the contribution which is a great opportunity, even for owners of a small number of coins, to receive a stable profit.
At the same time, you guaranteed that you will automatically receive daily bonuses to your EDC wallet and freely dispose of them at your discretion.
The decision of the Chinese authorities to ban mining is entirely justified. In addition to the imbalance in the global economy, one cannot take into account 51% attacks. After all, having such a ratio of computing power, the user can rewrite the history of the coin. Imagine that a multimillionaire buys a supercomputer, connects a power station to it and does whatever they want with. Is this possible to allow when cryptocurrency goes to the world level?
They are looking for alternative solutions to this problem. In our opinion, mining based on the maternode is the quintessence of convenience, benefit, and reliability. At least in the near future.