Topic: Central Bank of Russia to Accept Legalization of Cryptocurrency Mining !!! (Read 257 times)

Actually an average house uses probably less than 1kW 24/7 in most countries, so yeah trying to hide even a single current miner wont work without e.g. solar.
Winter may be a little higher, but unlikely to be 2kW 24/7

My elec bill says 1kW 24/7 is typical of a 5 person home, but it's of course not linear, so 3kW would be a very large family

Russian government or any other communist government can not be trusted. Russia is possibly thinking to bring some forex supply inside the country and that's why they have softened their stance against cryptocurrency. It is probably due to the ongoing war with Ukraine.

But if it is not for the war, their direction can change quickly and may again out a ban on crypto mining at their will. That's the problem with communist governments who don't believe in individual financial freedom.

I think that if they are going to legalize it, it would be a form of payment without the need for the dollar. Just like gold they will start accumulating bitcoin

If you don't mine with enough equipment then mining can be pretty useless, mining with enough equipment is pretty hard to hide, the average gear nowadays needs about 3kw with of power, I am inclined to think that this amount is pretty much the average consumption for most homes in Russia, maybe the houses is wired to handle 15kw at most, so that's just 5 miners.

Anything about that will need factory-grade electricity, that will require some paperwork or otherwise good connections with some corrupt officials in the power grid, and then quite honestly, when planning to deploy say 100 gear or above, you will get to the point where you need to install a transformer of some kind, mostly 11kv to 400v, for this to happen you are going to need a few people in the power grid to install it, this widens the circle of people's mouths you need to keep shut.

And then, once you start drawing constant power 24/7 unlike all other businesses, anyone who has access to the substation monitoring screens will know that you are mining, which will bring more people into the circle, those people will either stop you from doing so or they will blackmail you into paying them enough.

So it's almost impossible to stay under the radar, people will know that you are mining, and in order to be safe from all that, you need to be/know/pay someone who has enough power (not electric power tho  ), so if the operation isn't a few MW worth of power, it will not generate enough profit to keep you away from the Russian authorities.

We can say China produces mining rigs because the company that produces is a privately owned company which its headquartered is in Beijing.
For the record, they have subsidiaries in different countries which the US, Malaysia, etc. Are among the list.

Speaking of purpose issue that will happen if Russia proceeds with the legalization of Bitcoin mining to escape sanction. This could be the reason why the new regulation for Netherland user on Coinbase.

One uses of BTC is to make money out of it and Russia have the advantage for they have the gas to power up their farms. Minig rigs I think is not an issue, China still produces those devices.

What they will have to navigate is that regulations will be tougher once they dive into this venture. Because this will also where regulators will identify where BTC comes from and will tag it "Bad BTC" because its mined thru fossil fuel or from Russia.

I believe the Russian government is not different from the Chinese government because all everything they always do is use Bitcoin to their advantage when they are in a tight situation and never support its course because they ought to have legalized Bitcoin mining and Bitcoin as a whole before now which I believe could make Bitcoin face another level of regulation to prevent Russia escape sanction.

You will have to dyor but most decentralized network protocol AMM exchange offer this service and the best bet are Uniswap and PanCake.

Russia needs money so badly. I don't really wonder too much.

I have a quote from my old man for situations like this: "stay under the radar."

As long as you lie low, never speak to the press, and don't mine with too much equipment, a Russian's mining operation should be relatively anonymous to the government, except to some lower officials in the ministry required to regulate electricity.

I don't think that would be an issue, maintaining and even expanding electricity in its basic form is pretty simple, if we were talking about cutting edge where you want efficiency to be 99.9% instead of say 95% then ya, you would need other countries' know-how and technology, but burning coal, gas or diesel to generate power can be done easily, I live in a 3rd world country and we managed to do that for years during sanctions and even civil war, so I highly doubt a country like Russia will have a problem in that field.

However, there is a bigger problem, Russia is a corrupt country ruled by a single man, the constitution and laws are hardly enforced, and the government can just claim that you sold your BTC to Ukrainians and treat you as a traitor and hang you in one of the public parks, or they can nationalize your company/mining farm without any compensations, so even those Russian investors who can afford to build huge farms will likely not take the risk, I imagine only someone who is has a high army rank or close to Putin's circle would mine there safely.

I guess the question(s) are

1) Are there enough other places to sell the BTC that would want to deal with the possible sanctions blow-back to make an economic difference.
2) Are there enough miners still in the country to matter?
3) Power / cooling and so on. Due to the sanctions the Russian power grid is going to get more fragile since obtaining spare parts for things is going to difficult^*
4) The general feeling that the Russian govt has gone from yes to no to yes to no and is looking back to yes again on mining & BTC in general. Will people make an investment into BTC equipment and facilities if they feel that whenever this conflict / sanctions end the government will go back to no...

-Dave

^* This is not a comment against the Russian power grid, but grids in general most of the world is using components from all over the world to make their grid work. Be it transformers / generators / controllers / etc. No one country manufacturers it all.

Problem is the burn. Who would waste time on such a project after having learned it goes VRRRRRRRRRRRRRRRR on you.

To much noise.

Mining rig in a tub with cardboxes for noise protection? Anyone?

For comparison. In the old days it was a problem to get light instead of heat from the bulb.

Gold smuggling in coconuts. I played that one in Tropico 6. (Good old fashion love).

I would like to use the occasion to promote privacy coins and private chains.

I would not be surprised at all. They cannot sell all the oil, gas and electricity they make due to the sanctions. They need money, badly.
Then why not bitcoin? Mining bitcoin can be done and they will acquire coins that are valuable and can be sold everywhere avoiding sanctions.

Just, in the same way the western countries no longer accept Russian gold, it can easily happen that such a move from Russia would cause troubles on Bitcoin markets (and related regulations).

Bank of Russia Ready to Legalize Crypto Mining If Miners Sell Minted Coins Abroad.

The Central Bank of Russia would agree to the legalization of cryptocurrency mining, provided the proceeds from the activity are converted to fiat outside of Russia. The regulator’s latest position on the matter comes after it softened its stance on the possible use of cryptocurrencies for payments, even if only internationally.

Full Details:
https://news.bitcoin.com/bank-of-russia-ready-to-legalize-crypto-mining-if-miners-sell-minted-coins-abroad/

Do you expect Russia to legalize cryptocurrency mining this year..?