Erik Voorhees, founder and CEO of ShapeShift, explained that BitLicense collects an ‘Orwellian’ amount of information on users and creates security risks. It also re-connects personal information to transactions that would be anonymous otherwise.
Voorhees claims that rather providing oversight, the BitLicense regulation is creating a cybersecurity risk.
Unlike in the traditional money systems, governments simply print more money when they need to, in bitcoin, money is discovered. Computers around the world mine for coins by competing with each other.
Bitcoin mining is the process of confirming bitcoin transactions between people over a bitcoin network and keeping a record of it in a general ledger. It is actually the network that keeps all the transactions and puts them into a list called block. The miners’ job is to confirm those transactions and record it in the general ledger.