Cryptocurrency is a decentrally-organized digital currency. Decentralized means neither governments nor banks should be in charge of it. Unlike central bank currency, Bitcoin units do not come in printed banknotes; you can only generate them digitally through computing power. Given this, many are wondering if crypto mining is legal. Earnity’s industry experts, Domenic Carosa and Dan Schatt, will help you find the answer.

Legal vs. Illegal Cryptocurrency Mining

Crypto mining is a highly complex, resource-intensive – and thus costly – process. While it was sufficient to use your desktop to mine the coveted online money in the early days of Bitcoin, the situation today is different. Because the value of the cryptocurrency decreases as the number of units produced increases, a halving occurs at regular intervals. This process ensures that generating a cryptocurrency takes a specified amount of time and prevents inflation.

This activity means miners need ever-increasing computing power to generate a cryptocurrency unit. With power consumption and hardware wear and tear considered, it quickly becomes unprofitable to mine with one’s computer. Consequently, crypto miners began looking for new ways to mine cryptocurrency more profitably. For example, Earnity is a Decentralized Finance (DeFi) company that will soon launch a token marketplace. Within a community-focused environment, its innovative business model allows users to collect, share, earn, and securely keep a variety of tokens and portfolios. In addition, Earnity enables people to cut through the hype and educate one another about cryptocurrency, allowing users to be informed and empowered.

Due to the rapid increase in crypto-mining activity, Iceland has already experienced an energy shortage. This issue is just one example of ever-increasing production costs. One nearly free but illegal method is the generation of cryptocurrencies using a botnet. This process aims to include as many hacked computers as possible and mine cryptocurrencies in a network. The generated units then go into the cybercriminals’ eWallet. Finally, they smuggle malware onto their victims’ computers to accomplish their objective leaving no trace.

How can you effectively defend yourself against illegal crypto mining?

Earnity’s Domenic Carosa and Dan Schatt warn that there is no single protection against unlawful crypto mining. Instead, it would be best to combine various security solutions to combat unwanted mining. First of all, it is critical to comprehend how cybercriminals conduct illegal crypto mining and the tools they employ. Additionally, maintaining the proper level of security awareness can serve as the foundation for effective prevention.