India is moving onto the cryptocurrency as far as the regulatory work is concerned. For the cryptocurrency mining in India, the operational possibilities are expected to open new pandora boxes for more than one reason.
In recent months, cryptocurrencies have yet again gained public attention and imagination. Per the latest developments, the Indian courts have reportedly allowed cryptocurrency exchanges, whilst China has launched its very own Yuan.
Cryptocurrency mining in India: A rising opportunity
To better understand issues related to cryptocurrency mining in India let’s take a broader look at the picture first. Amidst all the latest developments, there was a news story that might have been missed out and that was the king of cryptocurrency, Bitcoin halving the mining price for cryptocurrency; the miner’s fee was reduced up to $6.25.
A miner was supposed to get a reward of $12.50 for clearing out every block of transactions. Currently, the Bitcoin in circulation is limited and around 80 percent have been already mined, therefore, the mining cost has been increasing.
The halving event provides opportunities for experimentations and interaction between blockchains and the crypto community.
Whilst lowering the fees would imply that the mining cost would shoot up further, and hordes of people would drop out due to its low feasibility, thereby ensuring the sustainability of the platform. It is expected that by the year 2140, the fees would be zero. It is particularly important that it might push the innovations towards the blockchain interactions.
Presently, the infrastructure of Bitcoin could support block size of 4MB each, which does not enable it to store much of the information.
However, if the blockchains could be linked, when a huge number of people move out of Bitcoin then there would be a rush towards platform such Ethereum, and integration of technology would be a must. Across the globe, there are many experiments for these sorts of interactions that are going on.
For the government, it would have more significance, as it could link more and more services to the blockchain networks, and India needs to join the race before it gets too heated up.
Cryptocurrency mining in India would create an electric shortfall?
Although the current regime is boasting a new initiative that has allowed the government to take electricity to the rural areas in the country World Bank stats still report that over 200 million people in India still don’t have access to electricity.
Eyewitnesses from Mumbai, India also expressed that the situation may have changed in the rural area but even in the Mumbai area slums are still forced to live off on candlelight thus increasing the rich to poor divide in the country.
To make matters worse against cryptocurrency mining in India, BBC reported that the government considers a village to be electrified if at least 10 percent of the houses have electricity. By government definition 10 percent houses along with the public buildings including schools, health centers, dispensaries, community centers, and village councils, make a village electrified, but what about the other 90 percent houses?
So, by definition, all Indian villages have now been electrified. But government data shows that every household has access to electricity in just six Indian states – Tamil Nadu, Kerala, Andhra Pradesh, Punjab, Goa, and Gujarat.
In case the government allows cryptocurrency mining in India, such operations would increase the electricity and power shortfall on the ground is likely to increase along with the rich to poor divide opening a new pandora box for the Indian authorities and the government.