China can’t seem to make up its mind on Bitcoin. In 2013, the People’s Bank of China prohibited financial institutions from using Bitcoin and other cryptocurrencies for transactions, yet Bitcoin itself was not made illegal. In April 2019, Bitcoin mining was on the list of “wasteful” industries which were to be eliminated, yet disappeared from the list in November. That was possibly because a month before, Chinese President Xi Jinping announced that the country would go all-in on blockchain technology, in order to be a world leader in the space — yet cryptocurrencies, which feature blockchain technology at its core, weren’t mentioned.
The beauty of Bitcoin is the stability and security of its blockchain, or its public ledger of transactions. Considered virtually unhackable, the Bitcoin blockchain is bolstered by a series of checks and balances within its community: miners are decentralized and located around the world, nodes that store the blockchain run software that ensures transactions align to Bitcoin protocol (and if they don’t, they’re rejected), the proof of work consensus says that only new blocks can be created after agreement from the network, and the blockchain is constructed in such a way that transactions are permanent and can’t be altered. …Read more
Crypto mining is the method by which Bitcoin or other cryptocurrency transactions are verified and added to the blockchain. This can be done by anyone with mining hardware — from independent individuals to scaled cloud mining facilities. These crypto miners run the “proof of work” math on their computers to verify crypto transactions, and when they add a block to the blockchain, they are rewarded for their work with newly created Bitcoin, as well as transaction fees. Without crypto mining, there would be no Bitcoin, no blockchain — and especially no decentralization to the entire system.