Putin's Aide Seeks $100 Million to Rival China in Bitcoin Mining - page 2.

Tamilson

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Quote from: carlisle1 on August 09, 2017, 09:34:24 PM

Quote from: moviebuff777 on August 09, 2017, 09:01:46 PM

Quote from: TrumpD on August 09, 2017, 05:05:47 AM

I wonder what prompted the u-turn by Russia. They have gone from banning bitcoin outright to wanting to be an industry leader. Remarkable turnaround from them, not that I am complaining. It will help bitcoin and crypto currencies a lot.

I was thinking the same thing. They made it illegal but now they are trying to capitalize on it. I guess they see potential to make a lot of money so they want to get in on the action. Whatever the case, it's good for bitcoin.

they just taking advantage and you are correct as they seen big potentials so investing with bitcoin mining will give them much more money
in coming years china seen this before so I think Russia study this carefully before they enter the system.

And have you heard the RMC? Russia wants to develop a coin called Russian Miner Coin and they will fund it as long as they can. And with that mining also bitcoin to surpass China but China will not easily be defeated as China will do anything to make profit. More profit means more money and more money comes with great power to every country.

deisik

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Quote from: Hydrogen on August 10, 2017, 05:31:52 AM

Quote from: deisik on August 10, 2017, 01:28:39 AM

Regarding Btc-e and its legal operation in Russia, such assumptions are ridiculous since even access to the exchange site was blocked in Russia (btc-e.com), and folks had to use its mirror at btc-e.nz. This is the reality how it stands

If russian reached btc-e using a mirror redirect. Does it mean russia made a powerful effort to prevent btc-e use in russia. Has internet technology advanced to a point where the russian government can block access to mirror sites as easily as they can main ones? Or does it mean russia isn't putting much time or effort into enforcing anti crypto laws?

In the US there was something known as a lowest priority initiative. Some states had no money or resources to devote towards cracking down on marijuana and so they chose not to enforce laws against owning marijuana plants or carrying marijuana on a conditional basis.

Anyways, long story short, I'm certain Putin loves bitcoin. Russia loves bitcoin. Who doesn't love bitcoin?

Maybe, Uncle Sam doesn't love Bitcoin?

Further, I wouldn't believe anything any political figure out there says, especially in respect to Bitcoin and other cryptos (Putin included but certainly not limited to). As a newest Russian proverb says, man said man did are two different men (actions speak louder than words). Quite naturally that you might not closely follow the events related to Bitcoin in Russia, but just a few days ago a Russian court made a decision banning at one sweep something like 40 Bitcoin exchangers operating in Russia (that was hilarious). The lesson to learn is that you should take anything you hear about Bitcoin in Russia (both good and bad) with a spoonful of salt

Hydrogen

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Quote from: deisik on August 10, 2017, 01:28:39 AM

Regarding Btc-e and its legal operation in Russia, such assumptions are ridiculous since even access to the exchange site was blocked in Russia (btc-e.com), and folks had to use its mirror at btc-e.nz. This is the reality how it stands

If russian reached btc-e using a mirror redirect. Does it mean russia made a powerful effort to prevent btc-e use in russia. Has internet technology advanced to a point where the russian government can block access to mirror sites as easily as they can main ones? Or does it mean russia isn't putting much time or effort into enforcing anti crypto laws?

In the US there was something known as a lowest priority initiative. Some states had no money or resources to devote towards cracking down on marijuana and so they chose not to enforce laws against owning marijuana plants or carrying marijuana on a conditional basis.

Anyways, long story short, I'm certain Putin loves bitcoin. Russia loves bitcoin. Who doesn't love bitcoin?

deisik

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Quote from: Hydrogen on August 09, 2017, 10:09:58 PM

If russia opens a mining plant they could do something similar in placing their mining operation next to a hydroelectric power plant or another cheap and renewable source of electricity to hit their kilowatt hour figures. The numbers they cite could represent industrial energy usage rather than consumer consumption.

That could be a good point you made about russia and crypto laws. Whatever laws russia has I don't remember them doing anything to impede btc-e servers being located in russia. They also didn't extradite btc-e's owner to the united states. It is possible that shows russia's true stance on crypto whatever their laws say.

These laws aren't in favor of crypto right now

Basically, you cannot mine coins (at least, not officially) since issuing money or money tokens is explicitly prohibited according to the Law on the Central Bank of Russia. I don't think anyone is going to be prosecuted for that (which I have been telling for years), but they would have to accept a special law in respect to Bitcoin to circumvent this provision if they are to legalize Bitcoin. Regarding Btc-e and its legal operation in Russia, such assumptions are ridiculous since even access to the exchange site was blocked in Russia (btc-e.com), and folks had to use its mirror at btc-e.nz. This is the reality how it stands

panju1

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Quote from: moviebuff777 on August 09, 2017, 09:01:46 PM

Quote from: TrumpD on August 09, 2017, 05:05:47 AM

I wonder what prompted the u-turn by Russia. They have gone from banning bitcoin outright to wanting to be an industry leader. Remarkable turnaround from them, not that I am complaining. It will help bitcoin and crypto currencies a lot.

I was thinking the same thing. They made it illegal but now they are trying to capitalize on it. I guess they see potential to make a lot of money so they want to get in on the action. Whatever the case, it's good for bitcoin.

It is just one of Putin's aides who has floated this idea. It is not a government-sponsored push. If this goes through, the risk of the Russian government taking action against bitcoin (and by extension one of his aides) will decrease drastically.

Hydrogen

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Quote from: deisik on August 09, 2017, 02:07:34 PM

That's mostly bullshit

First, the consumer electricity prices are nowhere near that in Russia. It is more like 4 rubles per kilowatt hour (i.e. 5 times higher that the number given). The tariffs are cheaper for rural areas but they are still on the order of rubles, not around 80 kopeks. Further, the Russian authorities should first decide what to do with Bitcoin per se, i.e. whether allow Bitcoin for personal use and whether allow mining it since issuing money and money surrogates is strictly prohibited by Russian laws, and still more so if Bitcoin is to be treated as a currency. They would need to adopt a special law regarding Bitcoin to address that issue, but nothing has been done so far

This is the only picture of a chinese crypto mining operation I've seen.

The caption says: A bitcoin “mine” with a blue tin roof sits next to a hydroelectric power plant in Ngawa Tibetan and Qiang Autonomous Prefecture, Sichuan province.

Here's another picture to give you an example of the number of mining rigs they run.

If russia opens a mining plant they could do something similar in placing their mining operation next to a hydroelectric power plant or another cheap and renewable source of electricity to hit their kilowatt hour figures. The numbers they cite could represent industrial energy usage rather than consumer consumption.

That could be a good point you made about russia and crypto laws. Whatever laws russia has I don't remember them doing anything to impede btc-e servers being located in russia. They also didn't extradite btc-e's owner to the united states. It is possible that shows russia's true stance on crypto whatever their laws say.

carlisle1

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Quote from: moviebuff777 on August 09, 2017, 09:01:46 PM

Quote from: TrumpD on August 09, 2017, 05:05:47 AM

I wonder what prompted the u-turn by Russia. They have gone from banning bitcoin outright to wanting to be an industry leader. Remarkable turnaround from them, not that I am complaining. It will help bitcoin and crypto currencies a lot.

I was thinking the same thing. They made it illegal but now they are trying to capitalize on it. I guess they see potential to make a lot of money so they want to get in on the action. Whatever the case, it's good for bitcoin.

they just taking advantage and you are correct as they seen big potentials so investing with bitcoin mining will give them much more money
in coming years china seen this before so I think Russia study this carefully before they enter the system.

GeraldGregoryy

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Quote from: BitcoinBallerina on August 09, 2017, 06:30:38 PM

What are electricity rates like in Russia?

I know China has some of the cheapest electricity in the world, which is why they are such a leader in Bitcoin mining today.

It's apparently much cheaper than china, even at consumer level

moviebuff777

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Quote from: TrumpD on August 09, 2017, 05:05:47 AM

I wonder what prompted the u-turn by Russia. They have gone from banning bitcoin outright to wanting to be an industry leader. Remarkable turnaround from them, not that I am complaining. It will help bitcoin and crypto currencies a lot.

I was thinking the same thing. They made it illegal but now they are trying to capitalize on it. I guess they see potential to make a lot of money so they want to get in on the action. Whatever the case, it's good for bitcoin.

error08

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Quote from: deisik on August 09, 2017, 02:07:34 PM

Quote from: Hydrogen on August 09, 2017, 03:34:01 AM

Quote

Russia has 20 gigawatts of excess power capacity, with consumer electricity prices as low as 80 kopeks (1.3 cents) per kilowatt hour, which is less than in China, RMC said in the presentation. The company initially plans to locate mining computers based on Bitfury chips in individual Russian households to challenge Bitmain by using Russia’s lower power prices.

https://www.bloomberg.com/news/articles/2017-08-08/putin-s-aide-seeks-100-million-to-rival-china-in-bitcoin-mining

Tried to bold the most relevent parts.

Good news for those favoring a decentralized btc mining paradigm. Miners becoming more decentralized could reduce probability of hard forks in the future. This could translate to diminished volatility. Much of bitcoin's negative volatility has been due to uncertainty, fear and sell offs derived from hard fork worst case scenarios. If japan, australia and other nations invest in mining operations that could further decentralize crypto mining which would parallel Satoshi's vision for btc not being centralized within national abstractions

That's mostly bullshit

First, the consumer electricity prices are nowhere near that in Russia. It is more like 4 rubles per kilowatt hour (i.e. 5 times higher that the number given). The tariffs are cheaper for rural areas but they are still on the order of rubles, not around 80 kopeks. Further, the Russian authorities should first decide what to do with Bitcoin per se, i.e. whether allow Bitcoin for personal use and whether allow mining it since issuing money and money surrogates is strictly prohibited by Russian laws, and still more so if Bitcoin is to be treated as a currency. They would need to adopt a special law regarding Bitcoin to address that issue, but nothing has been done so far

Well, I don't know which one is true unless you (deisik) live in Russia? People tend to believe in good news, and that bloomberg article mention about Russian President Vladimir Putin who seek $100 Million, even though we talk about his company but at least He is the president in Russia, right?
You may want to read this article as well : https://news.bitcoin.com/russia-legalize-icos/
as Vladimir Putin's company try to collect money through ICO, and Many similar ICO’s have been able to generate millions of dollars within minutes and hours, and much more over the course of days. It is likely Russia is using this method to instantly gain the revenue to start moving in on China’s hold on bitcoin mining.

shinratensei_

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Quote from: BitcoinBallerina on August 09, 2017, 06:30:38 PM

What are electricity rates like in Russia?

I know China has some of the cheapest electricity in the world, which is why they are such a leader in Bitcoin mining today.

That already stated by the article, you think that it must be lower than china, but remember we don't get the data that contained all of the rate of electricity in every country around the world.
Rusian will be a good competitor for china and to make another adoption for the crypto.

BitcoinBallerina

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What are electricity rates like in Russia?

I know China has some of the cheapest electricity in the world, which is why they are such a leader in Bitcoin mining today.

TravelMug

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Hmm. But I will always take everything with a grain of salt coming from Russia, specially in the crypto world. Isn't it they all suddenly make a U-turn on their decision about crypto's? And now this news? I always thought that they are anti-bitcoin, but I don't know why they suddenly love to go to bitcoin mining? Although is good that at least China's monopoly will be challenged in paper. But I not 100% sure that Russia will do that, unless I have seen a actual mining rig somewhere in there. LOL. And besides, they always contradicts themselves as far as I can remember regarding bitcoin before.

no0dlepunk

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It seems like Russia is playing a great role in promoting cryptocurrency. Honestly, I am excited on their project because the Chinese won't be able to drive bitcoin's future anymore. I guess Mr Vlad should keep on doing what he has been doing... bitcoin is the best escape to fiat deflation and Asian countries should learn how to take advantage of it.

iluvpie60

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deisik

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Quote from: Hydrogen on August 09, 2017, 03:34:01 AM

Quote

Russia has 20 gigawatts of excess power capacity, with consumer electricity prices as low as 80 kopeks (1.3 cents) per kilowatt hour, which is less than in China, RMC said in the presentation. The company initially plans to locate mining computers based on Bitfury chips in individual Russian households to challenge Bitmain by using Russia’s lower power prices.

https://www.bloomberg.com/news/articles/2017-08-08/putin-s-aide-seeks-100-million-to-rival-china-in-bitcoin-mining

Tried to bold the most relevent parts.

Good news for those favoring a decentralized btc mining paradigm. Miners becoming more decentralized could reduce probability of hard forks in the future. This could translate to diminished volatility. Much of bitcoin's negative volatility has been due to uncertainty, fear and sell offs derived from hard fork worst case scenarios. If japan, australia and other nations invest in mining operations that could further decentralize crypto mining which would parallel Satoshi's vision for btc not being centralized within national abstractions

That's mostly bullshit

First, the consumer electricity prices are nowhere near that in Russia. It is more like 4 rubles per kilowatt hour (i.e. 5 times higher that the number given). The tariffs are cheaper for rural areas but they are still on the order of rubles, not around 80 kopeks. Further, the Russian authorities should first decide what to do with Bitcoin per se, i.e. whether allow Bitcoin for personal use and whether allow mining it since issuing money and money surrogates is strictly prohibited by Russian laws, and still more so if Bitcoin is to be treated as a currency. They would need to adopt a special law regarding Bitcoin to address that issue, but nothing has been done so far

pushups44

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It was only a matter of time before governments and central banks see the potential of bitcoin and other cryptocurrencies to obtain leverage in global economic and financial affairs. At this point bitcoin and other cryptocurrencies are here to stay and can no longer be ignored by world powers.

If this is true, it is extremely bullish for bitcoin and other cryptocurrencies.

audaciousbeing

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We are all expressing optimism which I feel its nice for this kind of investment coming from mother Russia but without taking cognisance of the reaction of the Russian government in relation to crypto and especially bitcoin in which they have made it clear they are not favorable to any form of anonymity and more so, a project as massive as this will definitely attract the attention of government.

Rahar02

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Quote from: OmegaStarScream on August 09, 2017, 05:11:40 AM

A very good decision but we don't want from Russia to control either, we don't want from anyone to control. If only more countries take the same actions, that will make the network more powerful and decentralized then ever and this is valid for exchanges as well.

Woow, it's a big news
Russia want to develop their own mining system to challenge China, doesn't mean bitcoin mining become centralized as it can't be as long as there are some sides compete to process the blocks. It just added another Power in bitcoin mining, balancing and stabilize between bitcoin miners.
And I guess it is a Big ICO as well, where I can invest? What's the site to invest? Look at the opportunity, 18% of their earnings is a good deal. The initial coin offering (ICO) for these “RMC” tokens will provide holders with rights to 18% of the earnings generated by all mining equipment purchased with investment funds.

warrior333

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Russia can compete with China in the price of electricity. This compensates for the cost of purchasing equipment. On the other hand now the inflow of investments to Russia stopped. Crypto currency is the only chance for the Russian and they will try to use it.

Topic: Putin's Aide Seeks $100 Million to Rival China in Bitcoin Mining - page 2. (Read 1672 times)