Cryptocurrency isn’t exactly shrouded in mystery; it’s in the media every day. However, coverage is often sensationalist and deviates from the facts.
Money is the foundation of our modern world. With cryptocurrency changing the landscape of how we trade, it’s got a lot of people worried – as with anything that rocks our pillars of tradition.
However, it’s important to remember that cryptocurrency was created to improve the way we use money, not destroy it.
Here’s some answers to the most common concerns about cryptocurrency.
Cryptocurrency doesn’t employ a centralised bank to look after its coins. How can we trust it?
Remember the PPI scandal, where people were mis-sold insurance polices to pay off loans or mortgages?
How about when US and UK regulators imposed a £2.6bn fine on five major banks, for conspiring to manipulate foreign exchange rates?
Let’s not mention the credit card you took out at 30% interest…
We’re not implying that our banks – certainly in the UK – are corrupt. However, the evidence that they are mostly self-serving is all around us.
Cryptocurrency doesn’t require a centralised banking system because it has blockchain technology to manage security. Thousands of computers maintain a public ledger which verifies every single transaction, right from when the coin was mined.
The ledger is public, so nothing can be removed or duplicated without no
tice – plus there’s no fees to contend with.
Is it any wonder that our high street banks are viewing cryptocurrency with animosity? It’s destined to be their biggest competitor.
If cryptocurrency is ethical, why is it commonly used by criminals?
Let’s be honest here – criminals are always quick to pick up new technology and use it for their own gain.
Ultimately, they aren’t concerned about taking risks, especially if they think it will help them to get ahead. Computers, for example, are the source of a host of crimes that didn’t exist before them (such as the hacking of personal data).
Computers still have countless positive uses, as well as advancing the modern world beyond recognition. The fact that criminals can abuse technology doesn’t mean that the technology isn’t ethical.
When you consider that the black market is estimated to be worth $10 trillion – while the value of Bitcoin in circulation sits at around $300 billion – cryptocurrency has some way to go before it becomes the criminal accessory of choice.
Is mining cryptocurrency illegal?
In most countries around the world, it’s perfectly legal to mine and trade cryptocurrency.
However, a small number of countries have completely outlawed its use, such as Bolivia and Ecuador.
Keep it in perspective. It’s also illegal for a married woman to have more than one glass of wine in the Bolivian city of La Paz.
It’s also important to do your own research. At present, there are no restrictions on mining or cryptocurrency in the UK – in fact, more and more businesses are starting to adopt cryptocurrency and blockchain technology to advance their practices.
This doesn’t mean that it’s completely unregulated, though – so be sure to research the tax implications, too.
Is it safe to mine cryptocurrency on my computer?
In short – yes. But you mustn’t forget to be sensible, just like anything you choose to do online.
Cudo Miner software exchanges tiny and anonymous packets of data, which are mostly meaningless. The miner itself is only designed to solve mathematical equations as part of the blockchain – nothing more.
It doesn’t have access to any personal data, as it’s not designed to do so; it simply serves no purpose to the mining activity.
Lastly, as with any software you download, you must be sure to check that it’s from a reputable source.
Is cryptocurrency mining bad for the environment?
Reducing energy consumption, and thus the production of CO2 from fossil fuels, is a global concern.
There’s no doubt that mining rigs, which combine the power of multiple GPUs to generate cryptocurrency continuously, are not particularly environmentally-friendly. However, some effort is at least made to build these rigs in cooler climates, to reduce the energy required by cooling fans.
Cudo Miner, however, bucks the trend with its 100% carbon-neutral approach to cryptocurrency mining.
Cudo calculate the energy used by each machine applying the software and purchase the equivalent value in carbon credits. These carbon credits are then used to fund renewable energy projects, such as wind farms, to help create a greener planet.
By blazing a trail, Cudo hope to start a trend regarding responsible cryptocurrency mining. In time, this will ensure that the practice is sustainable.