From Booze to Bitcoin Mining – Why Violent Prohibition Is Always Harmful

Stories continue to emerge about newly discovered illegal mining operations being busted by state and corporate authorities. Just last week Iranian media reported the seizure of 177 Bitcoin mining units worth over $270,000 being smuggled via truck in the Arak region. On July 31, Russia’s Kraskom power company reported illegal siphoning of power from municipal grids for mining, resulting in losses over $31,000. With incidents like this in no short supply, it is worth asking why people are willing to risk severe criminal punishment to mine crypto, and whether government monetary policy worldwide might play a role in creating such demand.

Also Read: Tax Expert: IRS Letters Confirm That Trading Cryptos Is a Taxable Event

Violent Legislation Doesn’t Work

As American economist Milton Friedman once so aptly observed, “Prohibition is an attempted cure that makes matters worse – for both the addict and the rest of us.” In the case of the historic U.S.