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Risk Warning - Notice to UK Users  

Estimated reading time: 2 mins

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1.You could lose all the money you invest

The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in crypto assets.

The crypto asset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.

2.You should not expect to be protected if something goes wrong

The Financial Services Compensation Scheme (FSCS) doesn’t protect this type of investment because it’s not a ‘specified investment’ under the UK regulatory regime – in other words, this type of investment isn’t recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker here.

The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm. Learn more about FOS protection here.

3.You may not be able to sell your investment when you want to

There is no guarantee that investments in crypto assets can be easily sold at any given time. The ability to sell a crypto asset depends on various factors, including the supply and demand in the market at that time.

Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your crypto assets at the time you want.

4.Cryptoasset investments can be complex

Investments in crypto assets can be complex, making it difficult to understand the risks associated with the investment.

You should do your own research before investing. If something sounds too good to be true, itprobably is.

5.Don’t put all your eggs in one basket

Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.

A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Learn more here.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about cryptoassets, visit the FCA’s website here.

The Bitcoin mining rush

Bitcoin has become a household name around the world, for very good reasons. The same way gold became the standard of currency, bitcoin is doing the same. Here is what is causing the Bitcoin mining rush.

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The Bitcoin Mining Rush

Bitcoin has become a household name around the world, for very good reasons. The same way gold became the standard of currency, bitcoin is doing the same. With the rise of gold, we also saw a gold rush, as people flocked to the mines to find every flake of gold they could. Something similar is happening to bitcoin right now as the cryptocurrency mining rush has begun, with the world hiking up their ASIC miners to process as fast as possible. Especially with talk of Elon Musk considering reinstating Bitcoin payments once the carbon emissions and energy consumption associated with bitcoin mining are decreased. But why the sudden rush? it is not just another bubble, it is about global economic sustainability and excelling cryptocurrencies. 

Where Is The Bitcoin Mining Rush Happening?

Although the whole world may be captivated by the potential of cryptocurrency, China has always been a top contender for miners. Despite the repeat FUD spreading around China and its acceptance of digital currency, China bitcoin mining once accounted for more than 70% of mining power. But this summer's sweeping crackdown in China has greatly increased profits for miners outside of the world's second-largest economy, with counties such as the USA, Russia, and Iran making up for lost blocks. These regulations won’t stop Chinese miners from doing what they need, they just may no longer be doing it within the borders of China. 

It was 2 months ago that Beijing made moves to crack down on cryptocurrency. One of the steps was halting the supply of power to bitcoin farms, giving Chinese miners no choice but to pack their bags for more crypto-friendly countries. Chinese researchers express data portraying excess use of electricity consumption, especially in these stressful times. 

What Is Chinas’ Issue With Digital Currency Mining?

China has had numerous issues with cryptocurrencies over the years, first stating they didn’t want their economic wealth flooding into a global currency. They have potentially solved this problem as they announce their own digital currency created by a group of specialist. China’s digital currency, the digital yuan, is controlled by its central bank which will issue the new currency. Now they may have created a digital form of currency, but it is nowhere near cryptocurrency, aside from some computational comparisons. China plans to strip away the anonymity so beloved within Blockchain, and inside track and control where their digital currency goes. Nonetheless, their first issue has been fixed, so what is their problem now?

Supposably carbon emissions and energy consumption in the country are rising, due to cryptocurrency, not the masses staying at home. Regardless of if their reasoning and intent are pure, we know carbon emission due to cryptocurrency is a very real and impending issue. This theory has been confirmed by Tesla's Elon Musk halting bitcoin payments until the carbon emission issue is resolved, rightfully so as the guy selling low carbon emission electric cars. 

What Is Next For Chinese Miners?

Bitcoin mining is one of the most lucrative major industries in the world, yet many people don't know that Bitcoin mining generates just as much revenue as gold and silver extraction. The old Gold Rush might be waning, but Bitcoin miners are reaping the rewards of a new gold rush. The current generation shows entrepreneurial spirit unlike many before it, especially as the online era continues to expand. They see the market and trend associated with cryptocurrency and are ensuring they are involved in as many ways as possible. From trading on an exchange, accepting bitcoin for services, or using their computer to mine crypto. Blockchain technology is proving to be a leader in so many industries, even emission avoidance, so no issue should or will stop people from accepting and collecting it. 

Renewable Energy Countries 

The solution to China's electricity and energy consumption issues is not to stop cryptocurrency mining altogether, but rather for miners to move to more power conscious countries. This may not be so appealing for China itself, but it is proving to be the best option for miners. Miners may take a lot of energy and computer processing, but they also run very hot. So miners are looking for a country with a cheaper electricity cost to move to, with the added benefit of them being cold for an additional cooling process. Most countries that use renewable energy find their costs a lot lower than those that do not, this was even seen in China. Miners would run to the mountains of Sichuan, where abundant hydroelectric power made electricity services costs exceptionally cheaper per unit. 

Colder climates like Germany, Sweden, and Scotland are becoming increasingly more desirable countries of residency for crypto miners. Sweden is planning to be the world's first fossil fuel free country by the year 2040. Denmark has broken a wind power record, showing 43% of its electricity consumption being covered by wind; they also plan to be fossil fuel free by 2050. Germany is a leader in renewable energy, and in the first half of 2018 they proved that, by producing enough renewable electricity to power every household in the country for a year. Scotland is also joining the ranks of the greatest renewable energy countries. Scotland plans to build the worlds’ largest floating wind turbine farm, as wind power can generate 98% of Scotland’s electricity needs.

These are all brilliant, and cold countries can easily fit the needs of any cryptocurrency miner, with cheaper watts and a cooler climate to cut down even more on watts. 

Risk Of Regulations

While the above-mentioned countries are great candidates for cryptocurrency and bitcoin mining, there are other problems to be wary of. Crypto regulations are just an issue among crypto miners, but also for exchange services. Each country has taken its own approach to enforcing cryptocurrency into its economy, but some may be trickier than others. VISAs are also another thing to take into consideration. Holiday VISAs are easily acquired, but moving your entire mining farm across borders may not be as easy. Would you need a work VISA? A residency VISA? That is up to each miner to find out. Germany has shown positive sentiment to cryptocurrency, considering it as legal tender, and allowing institutional funds to hold up to 20% in cryptocurrency. Denmark and Scotland have also shown interest in cryptocurrencies, considering tax policies to help their native traders and the economy. Miners may be susceptible to taxation, and VISA regulations, but they do not have to worry about being in a country that wants to get rid of cryptocurrency. This alone, in addition to renewable energy, are benefits to any crypto enthusiast. 

Bettering The Blockchain Process

Not only does renewable energy mining save the world and miners money, but it also advances blockchain in general. Projects and people are more likely to accept cryptocurrency and Blockchain when it doesn’t have such a high economic and environmental burden. Using a terawatt of renewable energy is far more efficient and cost-effective than using electricity powered by fossil fuels and coal. With the bitcoin and cryptocurrency mining rush continuing to rally up troops, we in the community need to make conscious decisions for both cryptocurrency and our planet. The process of excelling bitcoin and bitcoin mining starts at finding a computing process that consumes less energy. Whether the miners in China, or around the world, have this intent is not the issue, as long as the rest of the planet pushes them towards more eco-friendly options. It doesn’t start with the miners, they are simply the suppliers, its starts with what we demand, as seen by Mr. Musk. Let us make better choices for Blockchain, earth, and our national economies. 


This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.


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