Bitcoin mining requires a hefty investment to get started. You have to spend thousands of dollars on special hardware needed to mine the crypto and cover substantial electricity bills. Considering that the entire world is on the brink of the biggest energy crisis in history, Bitcoin mining is becoming unprofitable. This article briefly describes How Profitable are Bitcoin Mining Sites, Various Bitcoin Mining Sites, Are mining bitcoin legally in India?
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What is a Bitcoin?
Bitcoin is the first of its kind digitalized payment system used worldwide where transactions are decentralized and happen without any intermediaries. Bitcoin is a cryptocurrency as it uses a strong cryptography system and codes to secure and carry out financial transactions. Bitcoin has been created as a peer-to-peer network eliminating any intermediaries in between and the bitcoin transactions are verified by using cryptography by network nodes. The record of all bitcoin transactions is kept in a blockchain which is a publicly distributed ledger for bitcoin transactions.
Bitcoin mining
Bitcoin mining is a complex computing and mathematical process by which the bitcoin miners bring new bitcoins into the world and it is also a process of verifying and adding bitcoin transactions to the public ledger i.e., blockchain. The bitcoin mining process involves assembling a block of recent bitcoin transactions and attempting to solve computationally tough puzzles.
Various Bitcoin Mining Sites
- Copium Protocol – Best Site for Cloud Bitcoin Mining
- ECOS – Best Cloud Bitcoin Mining Runner Up
- GMINERS – Bitcoin Mining Yields of 150% And Higher
- TrustMining – Cloud Bitcoin Mining Site for Beginners
- StormGain – Simple Mining Platform Supporting Multiple Coins
- Best Cloud Bitcoin Mining Sites in 2022 Reviewed
Before choosing the best cloud mining site with the greenest features, you should first check if the provider is legit. You should also check which cryptos are available for mining and how much it costs to get started. You want to go with the option that provides the highest ROI.
Is mining bitcoin legal in India?
Bitcoin is not recognized as legal tender or as currency by the Government of India and Reserve Bank of India which means that bitcoin cannot be used in India to buy or sell anything or for any financial transaction. Furthermore, the Reserve Bank of India has prohibited all banks and regulated entities from dealing in or settling virtual currency transactions. However, from a legal standpoint, bitcoin mining is neither legal nor illegal in India because there is no law or legislation in India which governs or recognizes bitcoins. There is no Act, law, or legislation defining what a bitcoin is or for regulating bitcoin in India, or prescribing any penalties or prosecution for dealing in or mining bitcoins in India. While individuals or entities can mine bitcoins in India but they cannot use such bitcoins for transactions and they cannot deal in or get any services for their bitcoin business or operations from any banks and other regulated financial institutions. Moreover, any individual and entity carrying out any bitcoin-related work in India shall be doing it at their own personal risk as bitcoin has not been given legal recognition in India.
Reserve Bank of India on Bitcoins
RBI has repeatedly warned individuals, entities, and banks from dealing or trading in virtual currencies including bitcoin. RBI issued public notices to this effect in December 2013, February 2017, and December 2017. Recently on 6th April, 2018 RBI issued a circular to all banks and other entities regulated by RBI prohibiting them from dealing in any virtual currencies and from providing any services to any individual or entity from dealing in or settling virtual currencies. These entities have also been prohibited from giving loans against virtual tokens, maintaining accounts, trading, clearing, registering virtual currencies, transferring or receipt money in accounts related to virtual currencies, and accepting virtual currencies as collateral. RBI is the final regulatory authority for all currencies and financial institutions, therefore, all virtual currencies shall be regulated by it and given recognition only if RBI recognizes it.
Conclusion
In recent times, the public interest in bitcoins as an investment and payment system has increased multifil as bitcoin is the first cryptocurrency in the world and is easy to trade in and maintain. There is no central agency or intermediary which controls or regulates the mining of bitcoins or the transactions in bitcoin which makes bitcoin an unsecured payment system. The blockchain technology in which the public ledger of bitcoin transactions is maintained is impressive and has the potential to strengthen the digital economy.
