A significant increase of the bitcoin mining in Venezuela was sparked by hyperinflation in the country. Now the Venezuelan government has put before the miners, the requirement to register in the online registry.
The poverty of the people of Venezuela seem immense. The economy of the South American country exhausted by hyperinflation, caused by the policies of the authoritarian government led by President Nicolas Maduro. Many people, both poor and rich, started to mine bitcoins in order to survive. But we had another policy tightening, and now the Venezuelan government ordered miners to register in the online registry.
Sign up or suffer the consequences
About the new registry announced Carlos Vargas – novopashenny “controller cryptocurrency Venezuela” at the last press conference. State online registration of miners of bitcoin will be launched on December 22.
In respect of the information required by the government, Vargas said:
“We want to know who they are, where they are and what equipment are used”.
Supporters of the registry claim that it will provide legal protection for miners. Currently, the government continues persecution of the miners. An example is the recent police RAID on 9 December 21 confiscation of the computer for mining, and the arrest of their 31-year-old owner. The police accused the miner in the currency fraud, computer crimes, damage to the electric power system of the country, financing of terrorism and money laundering. (It’s amazing how he still is not credited with crossing the road in the wrong place.)
What can go wrong?
Venezuelans are suffering from the economic policy of the socialists of the past several administrations of the country. Not available even Essentials such as food and medicine, and inflation reached more than 4,000 percent this year. In such circumstances people were forced to move bitcoins to purchase goods necessary for survival, given the fact that the situation is not improving in any way. A weekly trade turnover of bitcoins in Venezuela skyrocketed from 225 000 dollars in the beginning of the year to a mind-boggling $ 2.1 million in the first week of December.
When people are engaged in bitcoin mining began extortion and theft by the authorities. Mining farm of many people were seized by police and Federal authorities only to the authorities mainile bitcoins for themselves. One miner recently gave away 11 of its 20 computers instead of bribes for the sum of $ 20,000, and even more offensive that officials took his computer, now turn to him with technical questions.
But what can go wrong with the online registration of miners? Obviously, after making a complete list the government will be able to conduct mass seizures. The Venezuelan government has nationalized hundreds of companies, resulting in most of them ceased operations.
David Fernando lópez Torres, who moved my mining farm with Venezuela in San Francisco, says:
“If I was in Venezuela, I would in any case were not recorded. If they don’t protect the rights of miners without the registry, how can you believe that they will protect the rights of miners with the registry? First, they need to bring to the public, which will be used by the registry because their intentions cannot be trusted”.
Probably a result of the introduction of the online registry will be the transition of the majority of miners in the shadows. You must be quite mad to believe that a corrupt government will abide by the agreement and will allow bitcoin miners to work quietly on legal grounds. Either the miners will be subject to new taxes or the government will openly confiscate the equipment. In any case, the government will get the reward from mining Petkanov.
The President is a dictator, national government, thrilling hundreds of enterprises, economic policies that destroy the country and massive corruption point to really bad consequences for those who sign up. But, at least in Venezuela will be the Petro – own national cryptocurrency!