Topic: Bitcoin Mining now Legalized in Russia - page 2. (Read 497 times)

Alot Is going on in Russia as regards to bitcoin and it adoption, even though there have been war crimes, the country is indeed a center to many bitcoin mining and alot of other cryptocurrencies projects such as bitcoin mixing and other privacy enhancing development going on in that region.

When it comes to international trades and money movement, bitcoin serve that best purpose for Russia at this moment since their are suffering several sanctions, although this may just be my own speculations any ways.

BRICS will use their own monetary and financial system for money transmitter and they will avoid any risk of dependence on any network that can be affected or manipulated by Western countries. Bitcoin network is good but I believe that BRICS nations will not want to use this as it is still not under their control, they know this fact.

It's more related to geopolitical issues and it is part of their efforts especially from China and Russia to create a multi-polar world than a single polar world with dominant leadership from the USA.

Bitcoin mining is decentralized and after many years since 2009, it is no longer too centralized geographically in China. Nowadays with good decentralization of Bitcoin mining and hash rate globally, and in future more nations will join this profitable industry, we will have a more secure and decentralized Bitcoin network. With time, more decentralization of Bitcoin network, one nation like Russia, China or the USA. won't affect Bitcoin mining industry too much if they abruptly have big policy changes.

Decentralized from hash rate and nodes.
https://coin.dance/nodes
https://bitnodes.io/
https://buybitcoinworldwide.com/mining/by-country/
https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country

Still on this same discussion matters, El-Salvador is bringing an idea to Russian for considering the use of bitcoin in performing it international trades, as it said that this decentralized digital currency will help them have a quick recovery over the impeding consequences over the instilled sanction, if they could imagine the first step taken by them when they adopt bitcoin as a legal tender and how its applying solution on different economic and financial aspect of their country, Russia may do same and see if it could also serve them the same role under a decentralized network in which they are also enjoying now https://cryptoslate.com/el-salvador-proposes-crypto-trade-with-russia-amid-sanctions-pushback/

I also don't think this decision has anything to do with BRICS as people think, it's just a decision that will have an impact within Russia's territory. Perhaps as you said they want to promote their economy in many different ways or they also want to compete for this market and do not want it to completely fall into the hands of the US.

But personally I don't think bitcoin mining in Russia is a bad thing. The fact that miners are evenly distributed across countries is a good thing instead of the majority of mining companies being too concentrated in the US and China.

According to Xinhua News, the Russian President has approved the bill of legalising of bitcoin and cryptocurrencies mining but the bill will be effected from November 2024 and only those people allowed to do minig who are registered with Russian Digital Development Ministry. It is a great news indeed for crypto world that real world accepting the importance of bitcoin and digital currencies.

Russia making the move to legalize Bitcoin mining doesn't mean that it's a BRICS decision or that any of BRICS countries are going to follow suit. Russia wants to support its economy in any ways it can, and unfortunately it decided to do so via Bitcoin mining. It's not good for Bitcoin to become associated with Russia like that. And it's especially bad that crypto mining will likely grow in Russia (unless avikz is right that high taxes will stop people) in light of the new law, while taxes from profits will go directly to fund Russia's war crimes in Ukraine.

If they only want to evade against the western sanctions, they only need to not ban Bitcoin. They never ban Bitcoin, so I don't see any reason they need to legalize mining.

I expect China will do nothing, they didn't get any sanction, instead many US manufactures are operated in China. If they want to accept Bitcoin, they would accept Bitcoin ETF instead.

The news of Ferrari accepting bitcoin as a means of payment is not new. In October 2023, they will start accepting payments in BTC, ETH, and USDC but will be limited to the US market . Next, in July 2024, they also introduced cryptocurrency payments in the European market .
In general, the use of bitcoin as payment has been used by many large organizations and companies, but what we still do not know is how many orders are paid with bitcoin from those companies . So far they have only announced accepting bitcoin usage, they have not announced anything else .
As far as I remember , Honda also accepted bitcoin payments many years ago .


https://www.reuters.com/business/autos-transportation/ferrari-accept-crypto-payment-its-cars-us-2023-10-14/

https://www.ferrari.com/en-EN/corporate/articles/ferrari-extends-cryptocurrency-payments-to-european-dealers

I think they are trying to avert economic sanctions through transacting with virtual values like BTC perhaps the Russian government is trying to use Bitcoin since it's stronger than the US dollars and Kuwait Dinner to encourage the continuity of Russians in international business transactions, for instance, a Russian could buy goods and make payments using BTC from online shops that accepts BTC and send it to a friend in another country not been sanctioned like Russia and afterwards the friend could ware Bill it to him been the actual or initial purchaser in Russia, and again, BTC holders will surely attract customers,so Russian mining and holding substantial amounts of BTC will attract investors from many countries.

Or could it be it's because of this news that Bitcoin was able to crose back to the _$62k benchmark after it's recent far below $55k yesterday? Because I thought as much, however, this is a welcome development to have Russia, one of the biggest world power embrace Bitcoin as a currency generally accepted for transactions within it's jurisdiction and also making a provision for its mining is another wonderful idea, as that will really have a positive impacts on the general use of Bitcoin globally. Moreover, this is the best time to invest in Bitcoin, because with Russia current involvement in the mining system, its likely to influence its price positively.

Pure game theory, US politicians getting pro bitcoin, Russia legalizing mining... we'll see about China. Let's forget about the price for a while and come back in some months, ignore the noise

I don't know a single country in the world that had any real success in trying to ban anything related with bitcoin, that includes mining.
Russia could not really ban Bitcoin mining also, so they decided to legalize it and they will probably change big tax for everyone who is mining legally.

Another feather added to the cap of the technology.

Its gradually coming through, no new revolutionary technology intertwined with finance was ever welcomed with open arms until it defies the very gang up against it.

We will see many more countries legalize Bitcoin in no distant time, it's either they accept it or they accept it, it can't be otherwise. There may be delays in adoption but not entirely shutting it out.

This news is good for the future of bitcoin, but of course there is absolutely no point if we don't save bitcoin. The world is changing so fast and European countries and big businesses will consider adopting bitcoin as a means of payment, so of course it would be a shame if we ignore bitcoin in our investment portfolio.

Apart from the legalization of Russian bitcoin mining, I also heard the news that the Ferrari car company has also adopted bitcoin as a means of payment. So far I have not been able to confirm that the news is true, but I will find the references to find out the truth.

I don't think it will affect the price because who in their right mind would start a mining business in Russia right now? This is a country of uncertainties that's currently at war. It's also sanctioned so there's no way companies from abroad will move in to invest in mining farms. Maybe people from China would want to try, but there's always a risk that you'll build a mine and a few weeks later it will get hit by a drone.

You can't fully understand why the Russian's are doing what they are doing in terms of advancing their crypto-currency activity.
Russia has always been interested in crypto even before there was a European sanction threat, and this is just one of those step in the right direction in terms of crypto-currency.

I think I saw this news somewhere outside the forum, but can't really remember where. This is a good news to Bitcoin community, which shows the adoption and open arms we've been glamoring for.

President Putin's move are sometimes unpredictable, but i think he must have put some policies in place to checkmate electricity consumption by those who will be going into mining, because I think electricity consumption must have been part of the reasons why some government frowns towards mining.

And again, are miners allowed to operate in any part of Russia freely without registration or licensed?, because I think some form of licensing might be imposed on those who want to open a large mining farm.


Yeah, I sometime read about them being among the top three in electricity generation. which I think we might be seeing lots of mining farms. But, I am interested in knowing if the legalization gives miners free hand to do their thing, or maybe licensing and regulations are involved.


India's action towards crypto is quite funny and same time disappointing. Though, I don't live there, but I know for sure that large number of their citizens gets themselves involve in crypto related matters as an alternative to surviving hardship. As for China, they've stand on their words on crypto, but some of us here will be looking forward to the day where they will be forced to make a U turn.

The problem with BRICS nations is that they don't have unity of purpose. Every one of them has an individual intention of joining the alliance. Maybe they do not have a single currency because China might be nursing the idea of making the Yuan the organisation's currency. Meanwhile, India and Russia might not be comfortable with the idea. China wants its currency to compete with the US dollar so it might not accept payments in Bitcoin.

Maybe we have started seeing the effect of the publicity the US elections is giving to Bitcoin. Donald Trump sees Bitcoin as the future of money and he wants the US to to stockpile enough. There is also a bill in Congress that seeks to mandate the US government to buy some amount of Bitcoin periodically. Maybe Russia also wants to start its policy of hodling Bitcoin.     

It's true and was expected since their war invasion against Ukraine since 2022. They hoped that they don't have to do this but after more than 2 years, the war has yet ended and sanction against Russia increases with time. With this pressure on their economy, they have to find alternative ways move fund and avoid sanctions from Western countries.

I have very small hope that Russian government will care about their citizens and are ready to apply friendly tax policy on Bitcoin and cryptocurrency miners.

I don’t know how much this will affect us price but regardless, it's obviously good news. Russia has cheap electricity & the more miners the have, the more decentralised the network is so I welcome this as good news.