Bitcoin is at the cusp of an exponential change in its three-year history. From being a fringe internet currency, primarily used by black markets for less than reputable practices, it is becoming increasingly recognized as a potential store of value not too different from gold. Check this link, you can learn more about Ethereum trading.
Most of Ireland’s major high-tech companies are quick to say that they recognize the potential in bitcoin. Amongst them, Dublin-based hosting company Blacknight Solutions has announced it will soon accept the currency entirely unrelated to bitcoin’s growing reputation.
No longer just an experimental code written by an unknown Japanese hacker only five years earlier, bitcoin is already being traded for euros on the new Irish exchange Brightcove.
7 Ways how manufacturing industry in Ireland is impacted by bitcoin
1) Manufacturing is vital for the economy
Ireland’s economy provides services, such as hosting data centers. The high-tech industry provides the central part of these services. Since it has pretty expensive electricity prices (about 30% more than the UK), bitcoin mining can be profitable for local companies willing to provide power at reasonable rates to bitcoin miners.
2) Manufacturing bitcoins
Ireland has an extensive history of gold production and exporting it worldwide. However, advances in technology led to Ireland’s focus on silicon production, which led to the Irish Silicon company becoming the largest producer of solar cells in Europe.
Bitcoins are just another form of money and can be mined or minted into existence just like any other currency. Since Ireland is a high-tech manufacturing hub, it can benefit from such activity.
3) Help to provide low-cost electricity
Bitcoin miners will take advantage of the abundant clean energy available in many areas of Ireland. However, one problem remains: there’s always a chance that the bitcoin mining equipment would overload local circuits and cause a power outage or damage to homes and businesses. As a result, the country will need to upgrade its electricity grid in preparation for bitcoin mining activities.
4) Attract tourists from all over the world
Abundant, clean, and inexpensive energy will attract bitcoin miners from all over the world. This will lead to an influx of tourists who will want to come and experience the beauty of Ireland for themselves. Tourism is one of Ireland’s significant sources of income, and an increase in this area would undoubtedly benefit its economy.
5) Manufacturing bitcoins becomes profitable
Due to having abundant and cheap energy, global competition for mining bitcoins will be reduced. This will make it possible for the average Joe to make a decent living from bitcoin mining activities – at least as worthy as they can hope who are willing to invest in equipment and provide space for their rigs.
6) Manufacture of hardware related to bitcoin mining
The manufacturing of equipment needed for bitcoin mining will lead to an increase in demand for precious metals. This is because some components of a typical bitcoin mining rig require more than one type of metal.
4 Negatives of bitcoin that badly affects the manufacturing industry of Ireland
1) Bitcoin-related business pays no taxes
One of the significant issues with bitcoin is that traditional government taxation systems have difficulty regulating it, leading to tax evasion. In addition, the lack of regulation creates an unfair playing field as those companies providing taxable services need to abide by all necessary rules (such as VAT), while their competitors who engage in bitcoin-related business do not.
2) Bitcoin-related businesses attract cybercriminals
It is well known that a significant share of bitcoin-related crimes originates from Russia, Ukraine, and other former Soviet countries (7). These include hacking bitcoin exchanges and traditional banks and forcing them to transfer all their funds to accounts controlled by criminals.
3) There is no consumer protection when it comes to bitcoin
Bitcoin users are well aware that their funds cannot be frozen or recovered if they fall victim to fraud. This is mainly because bitcoins are not linked to any traditional banking systems and, technically speaking, do not exist in the real world.
It is little wonder why Ireland would benefit from bitcoin mining and, conversely, why it should be wary of its potential drawbacks. It will be interesting to see how the country implements bitcoins on a broader scale and deals with some of the more challenging aspects of this digital currency.