Bitcoin is one of the most popular topics now, some praising the cryptocurrency as a new means to pay for goods and services, and others criticizing it for being fake and calling it a bubble that will surely pop.
Table of Contents
While payments done via Bitcoin are considered to be anonymous, the transactions do show the IP address of the user. A great way to conceal your IP address is by using a VPN service provider. With the help of a VPN, you can change your IP location by connecting to any server offered by the service. However, even when using a VPN, your VPN service provider can see your IP address. Therefore, it is important to use a VPN service that has a no logs policy (for example, NordVPN). Providers that have a no logs policy will never disclose your personal information or real location.
The anonymity of Bitcoin payments was one of the reasons why China’s central bank announced that it wants to start banning Bitcoin as well as ICO (Initial coin offering). The two biggest China’s Bitcoin exchanges like BTC China as well as VIA BTC stopped trading and new users could not register on the said platforms. Another reason of cryptocurrency ban was that the yuan was weakening, making Chinese citizens interested in buying foreign currencies, especially cryptocurrencies. Furthermore, the Chinese government considered Bitcoin as a way to launder money as well as a good cover up for fraudulent activities. Moreover, transactions done via Bitcoin are anonymous, so it is never known what kind of sums are moving where. The government also feared that such payments might be funding terrorist activities.
Cryptocurrency exchange and trading was banned, and it seems that now the government is trying to discourage the mining of such currency. Local representatives must report about removing the cryptocurrency miners from their respective region, while the miners are asked to stop their activities willingly. However, it is said that many of the miners even before the news of the clamp down have decided to move outside China, to countries such as the US, Canada, Iceland and others. Most of them feared that after banning the exchange of cryptocurrency, the ban of mining of it will come soon afterwards.
One of the reasons of clamping down cryptocurrency mining is the enormous power consumption. A lot of power and electricity is needed to run the computers that are in the process of mining. Moreover, the process itself is quite lengthy, meaning that a lot of power is used for prolonged periods of time. The government states that most of the miners are taking advantage of cheap power for their activities.
There are some of the largest mining companies based in China and while some of them have moved their operations overseas, it will take some time to shut down all operations. Surely, bigger companies are easier to find and close, however, there are tons of small companies that will be harder to find and make sure they cease all their mining activities. The whole crackdown on the miners is changing the way of Bitcoin mining, as a lot of companies had used China for its cheap electricity and labor. Moreover, the lack of stability and the rising number of regulations will surely affect the future of Bitcoin.
NordVPN is a great VPN service provider that will help you stay fully anonymous when paying with Bitcoin. By connecting to its numerous servers, you can change your IP address so the transactions you make will not be tied to your real address or name. Moreover, NordVPN will keep you and your accounts private and secure, as it does not keep any logs and will not disclose any of your personal information.