Why haven't authorities targeted Bitcoin miners as unauthorized auction operators?

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chad_2018Member
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#1May 27, 2020, 06:11 PM
You can think of transaction fees like an auction where users are bidding on the cost for getting a block processed. It’s like a first-price auction where the highest bidder gets their transactions included faster. I’ve noticed that many places require a license for auctioning. So why haven’t governments decided to use this tactic against Bitcoin? They could easily go after miners, full nodes, or even core developers. The auction concept is even clearer in other blockchains where users with the biggest stakes are picked to offer specific services. For instance, Blind Merge Mining, which was suggested as a BIP, is another auction-like system that could be integrated into Bitcoin. Hope my question isn’t too naive.
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1t5_omegaHero Member
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#2May 28, 2020, 12:26 AM
Because attacking them only serves to make them go elsewhere, as happened when mining was banned in China. I would say that for nodes it is more difficult if the one who has the node takes precautions and devs the same, to chase devs you have to pass a law banning what they do and by then they will have gone to another country. Now it is too late for all that, also because Bitcoin is not the alternative system to the established power that Satoshi dreamed of, but it is integrated into it, so it makes no sense to attack it, when there have even been two candidates for the US presidency speaking well of it at the Bitcoin conference in Nashville.
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diamond_2020Legendary
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#3May 28, 2020, 06:37 PM
Mining is a business, and businesses have lots of lobbyists to help the government pass the right laws to benefit the mining companies. In the two major countries (USA and Russia), which are leading in mining, mining is a production and therefore protected by laws. Russia also passed a law on mining in August.
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#4May 28, 2020, 08:41 PM
There is no point in attacking what you feed on. I think that even at the moment, some countries benefit from the existence of BTC.
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w0lf404Hero Member
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#5May 28, 2020, 11:28 PM
It's a very valid question. However, I didn't see much attacks or prosecutions against the miners of the country yet. Probably they all payment taxes and also a big customer for their energy business. In many countries, energy is produced at a higher rate than internal consumption. So energy companies are happy when they can sell something at a commercial rate. But honestly, these are all assumptions. No one really knows why such sections are not applied against the crypto miners yet. But if a government is determined to bring down crypto mining business in their country, probably they will add these charges as well.
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the_kingHero Member
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#6May 29, 2020, 03:39 AM
Your question reminds me of one of the sources I once read about: Is Bitcoin Mining Legal? My understanding is there are many reasons a country does not legally attack Bitcoin miners, one reason that is interesting to me is: I think these two reasons are legally and legally Bitcoin miners can be said to be legal, even though there are some countries that do things that are detrimental to themselves after expelling miners and saying they are illegal.
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GigaAtlasFull Member
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#7May 29, 2020, 07:23 AM
Government didn't use that to attack Bitcoin because it helps in reducing the rate of unemployment and poverty we saw this during the pandemic many people loss their jobs,the lives of many people could have been miserable since then if not because they have bitcoins .so i don't see a reason why the government will attack such a thing cause it is beneficial to the government and its people,them attacking it will not make them gain anything instead they will make people be poor causing unemployment and many other problem that will arise.   Government are suppose to focus on ways to make bitcoin more beneficial instead of attacking it.
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gw31_2021Full Member
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#8May 29, 2020, 12:31 PM
Governments haven't targeted Bitcoin miners as unlicensed auctioneers because the regulatory landscape around cryptocurrencies is still evolving and unclear. They're still figuring out how to classify and regulate cryptocurrencies, and auction laws aren't a top priority. Plus, going after miners could be seen as an attack on Bitcoin's decentralized nature, which could backfire.
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yield_guruFull Member
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#9May 31, 2020, 03:06 PM
Not to repeat what others above already said, I just wanted to point out that the process of adding transactions to a block is NOT an auction. That's simply because miners are not legally obliged to prioritise transactions with the highest fees, they could include/exclude whatever transactions they want. Most of course will act according to their own financial benefit, but some might choose to use different criteria. For example, back in the past, ViaBTC allowed (not sure if they still do) to accelerate transactions with lower fees (subject to limits and a minimum fee) via their online tool.
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