Bitcoin mining has now developed into a lucrative business globally. Provided you live in a country with acceptable electricity costs or you can somehow generate the energy yourself cheaply. Most of Bitcoin mining is done in China because electricity costs and infrastructure are cheap there.
Due to the waste of energy in Bitcoin, there are repeated discussions about the usefulness of mining. China has considered banning Bitcoin and Bitcoin mining several times. So far, however, it has never been passed by law. Countries in which Bitcoin and Bitcoin mining are partially or completely prohibited are Morocco, Algeria, Nepal, Bangladesh, Kyrgyzstan, Paraguay, and Ecuador.
Germany and Bitcoin Mining
Bitcoin mining is generally allowed in Germany. However, it is a legal gray area. To be on the safe side, you should register a business first. At the moment, however, you don’t have to worry about it, unless you have your own power plant. Bitcoin mining is not profitable at the current electricity prices in Germany. If you still want to try, you will likely incur losses.
The United States and Bitcoin Mining
Under federal law, Bitcoin and most cryptocurrencies are defined as commodities. However, activities related to Bitcoin varies within the US. Bitcoin mining is legal in the US as it is classified as a commodity in September 2015. The IRS considers Bitcoin as a property and holders do need to pay taxes on it.
Anyone in the US that has to do a substantial amount of business in the U.S. with cryptocurrencies must register with the FinCEN as a money services business, enforce AML policies and keep all the appropriate records necessary.
Bitcoin is also legal in Canada and Mexico, however, there is a banking ban currently standing in Canada since 2018.
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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
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