It is no secret that cryptocurrencies are a source of income for many people seeking stable economic freedom, especially in countries where there is inflation or hyperinflation, where their currencies are worthless and they seek to buy more valuable currencies such as the dollar and the euro.
The amount of bitcoin is finite, it is not a secret, but with so many active mines it is increasingly complicated to solve the algorithm of bitcoin creation, so over time the mining process will be slower.
Now, why bitcoin has a circulation limit of 21 million? Simple, the creator of bitcoin, Satoshi, decided that the currency should be deflationary like gold, with the reason that if something is naturally scarce, it is more likely to have value. Otherwise, if bitcoins were created indefinitely, it would not have the value it has now, and if it did, it would only be temporary.
The bitcoin has reached such a high value because of the acceptance of the users and it will continue to rise even more, as well as there will be times when its value decreases, like everything in life, there are good and bad times. The latest investments made by Elon Musk have been the one that has led bitcoin to be worth almost $50,000, not bad.
The initial question, why are the governments of different countries restricting the use of cryptocurrencies such as bitcoin?
To give answers to this issue we must know that a bitcoin farm, in this case, are equipment that consume a lot of energy both to cool the equipment and to keep the equipment running 24/7, it is a topic that is quite sensitive. Some countries are not able to support so much energy to maintain such equipment.
In this case, Venezuela my country, is regularizing the mining of cryptocurrencies such as bitcoin and others, so that whoever wants to do it has two options, one to keep your legal farm with all the papers in order and the other to remain anonymous and be subject or be aware that at any time you will have the authorities knocking on your door to enter your house and look for the machines and seize them, unless you pay them a "bribe" and they turn a blind eye to everything you do, but when they feel like it they will go to charge you, and in large quantities because they know how much the equipment and cryptocurrencies are worth.
It is said that in Venezuela the Venezuelan army has its mining farms without any kind of restrictions, while individuals are regularized up to the amount you are going to mine per year, so that they always have control over what you do, if you overdo it you will be in trouble.
The energy problem in Venezuela is serious, as many people do not have or do not have electricity service even 4 hours a day, and with mining farms in some states it is not convenient for the government mining activity, remembering that they are sanctioned by the US government, they themselves will look for a way to stay longer, and bitcoin seems to be the salvation.
To have your equipment in Venezuela, you will have to register everything you are going to use for mining in such a way that they through their registration indicate you if you classify or not to mine cyptocurrencies, they give you some deadlines to decide if you can or not and in case you can not, you can reapply but with the condition that by not being approved again unfortunately you are not going to perform the activity in a legal way, Many run the risk of doing it without registering the equipment and if they are discovered they will go to jail for crimes related to technology, they confiscate the equipment and you must pay a part for other concepts that they want to apply to you, practically it is very risky to do it illegally.
Governments mostly want to regularize the use of cryptocurrencies to avoid legal problems, as you can generate endless legal problems such as fraud, including some countries urge to charge for monthly work in cryptocurrencies and pay taxes with them.
Of course, everything will depend on the way you use it and the percentages that apply to each one. Many will be against and a few in favor, not everyone knows this world in which we are immersed and less people such as our grandparents or people of a certain age who will not understand any of this.
It would be curious to know how to tell a person over 80 years old that they are going to collect their pension in; example: 1 bitcoin, first they will need to know what it is, because it is virtual and not physical as they knew it, because everything is done virtually anonymous, and if there are probabilities of extortion when buying certain things with those bitcoins. Many questions that are left up in the air and that can be given any kind of interpretation.
How do you see all this regularization issue in your country?