Topic: Putin's Aide Seeks $100 Million to Rival China in Bitcoin Mining (Read 1693 times)

Bitcoin uses it personally or allows it to be exploited since the release of currency and currency representations prohibited by Russian law, and much more if Bitcoin is treated as a currency. They will need to pass a special Bitcoin law to address that problem, but nothing has been done so far.
I do not think anyone will be prosecuted for that (which I have said for many years), but they will have to accept a special Bitcoin-related law to circumvent this rule if they legalize Bitcoin. . About Btc-e and its legally operating in Russia. I do not believe anything any political person says, especially for Bitcoin and other passwords (Putin includes but is not limited to). As one of Russia's newest proverbs, men say men did two different men (actions speak louder than words). You probably do not closely watch Bitcoin-related events in Russia, but just a few days before the Russian court made a decision to ban certain things like 40 Bitcoin exchanges operating in Russia (funny ).
Russian Miner Coin and they will sponsor it as long as they can. And with the bitcoin mining also to overtake China but China will not easily be defeated as China will do anything to make profit.
Today's bitcoin exploiters require a special computer chip based on minimum energy consumption. China's Bitmain Technologies is one of the leading manufacturers of this equipment and can also operate Antpool, a pool of individual miners from China and other countries. Opponent Bitfury Group, founded by Valery Vavilov, a Latvian-born Latvian, produces virtual currency mining equipment and runs large-scale centers in Georgia and Iceland.
China in the field of mining, I guess it would not be a country that has close ties with the united states or with the central bank. Russia announced plans to enter the bitcoin mining market could be made in retaliation for the latest US economic sanctions. To a certain extent, Russia can realize that the United States does not want anyone threatening China's mining operations.
If anything, Russia will leave the international payment system controlled by Washington, DC, so your whole hypothesis is unprotected. To put it simply, you have to face the truth even if you do not like it
thank you

china has taken lot more steps ahead as compare to any other countries in making bitcoins legal and due to that bitcoin mining in china is growing rapidly.

Hi everyone. Now that ICO has started, has anybody invested on it? Minimum seems about 400$. Looks promising but have serious doubts about it. No official ICO bitcointalk thread either, and this one lacks of entries since several days.

Quite a good move by Putin. Watch and see Russian entrepreneurs skyrocket if this works out to be a success. Would be really nice for them. Entrepreneurs are one of the people that can make a change in a country, and I wish my own country is taking such move.

I think that this ICO not for all. Close number of people could invest and minimal amount is very high!

So where can we invest in this ICO ??

I would be careful in participating in this kind of ICOs because for it to gather 100million$ then news of it will abound which might mean unnecessary exposure to people in the crypto world in which I am not ready to for the exposure just yet. Aside that, I see a lot of legal issues concerning this coming from the top echelon of government and the Russian federation is yet to take a definite stand on the issue of crypto currency.

The promoters were Chinese. Russians have long been engaged in mining. Perhaps a huge farm that's saving their money for Putin's entourage. Their savings in the West are constantly under sanctions and frozen. For the Russian economy, mining will give nothing.

So you are saying Russia is holding officially an ICO ? That is FUCKING TRULY AWESOME ! Why is everyone talking about gay NEO and not this ?

This is something new, Putin is really smart, why not use their excess electricity for profit? This is really a good bews i just hope it will push through and wih that itwill happen sooner or later.  I will surely participate in Ico.
Their excess electricity ewill surely put in good work!.

It definitely is an opportunity. Those countries that realize this early, will profit greatly from it.

When it comes to Russia, mining Bitcoin and promoting its use makes a lot of sense, given their long-term goal to get rid of the USD as a world reserve currency.

In my view, Russians overall are though, a bit crazy, but clearly intelligent. So I'm not surprised if they are among the first movers.

It must depend where you live. In Moscow living expenses are so high compared to the rest of Russia. Also, from what I've heard, the government pays their citizens electricity, water etc.

If it is really cheaper for big corporations to start big mining farms, and with Putin on board, I can see Russia becoming an mining mogul in the next couple of years, surpassing China even.

This is the real deal for bitcoin, if ever this is true, we can expect a higher price for bitcoin because the demand for bitcoin is keep on going up and i think that russia and china will become a great competitor in mining bitcoin. This is what we are waiting for, we need more countries to realized that they should not let bitcoin pass to them or else they will not earn huge money.

The best thing about russians is that they are so open minded and they are giving every shot in every new technology. I've read about a news on how putin banned the rothschilds banking cartel in the russian grounds. Its not good to know that our country is having the hard time believing what is cryptocurrencies. Those who pioneered it earlier will have the success and I think our country will be behind in these field again. While praising how good the current system is someone is busy improving and implementing beyond what the present system can offer.

Yes, you're kinda naive to think so

And to think that the US and Central banks (I guess you refer to the International Misery Fund, World Bank, and similar financial institutions) are putting sort of pressure on Russia in this regard is bordering on insanity or wishful thinking (if I may put it this way). This is an entirely internal affair, and the US and its minions (like the aforementioned organizations) have nothing to with that. If anything, Russia is moving away from the international payment systems controlled by Washington, DC, so your whole assumption is in fact untenable. In simple terms, you have to face the truth even if you don't quite like it

Much thanks for the info. Maybe I'm naive but I don't think Putin is anti bitcoin or anti crypto. I think the united states and central banks put pressure on russia to pass these types of laws restricting crypto access. It could restrict russia's crypto exposure and force them to rely more heavily on the US dollar as a reserve currency. Russia being hit with so many economic sanctions, bitcoin may have become little more than a bargaining chip for them. Something to be used as an appeasement policy towards the USA and whoever else seeks to regulate crypto growth in russia.

It seems like domain names are banned. This basically means that Internet providers operating in Russia should prohibit access to these sites. And since another law has been recently signed by Putin which obliges VPN service providers (as well as anonymizers, proxies and their likes) to restrict access to such sites as well, you can't even use these tools to circumvent the ban (well, at least hypothetically). Regarding information about the court banning 40 exchangers at once (lol), you may look here

The complete list is as follows:


Expect more to come

Doh. That sucks! Will it be a hard ban? Or will those 40 exchanges merely circumvent the ban with mirror redirects like btc-e may have?

Also where did you find this information?     I'm searching but can't find any news of it.

Even if russia doesn't get into mining, I'm hoping japan, australia, korea or another country will. If another country competes with china in mining, I would guess it won't be one that has strong ties to the united states or to central bankers though. Russia announcing plans to enter the bitcoin mining market could be made in retaliation for the united states latest round of economic sanctions. On some level russia could recognize the US doesn't want anyone to threaten china's mining operations & so russia announces plans they will do that to pressure the US.

This is what im thinking too because they are already serious on engaging on bitcoin already which they do compete already on mining it. If russia would decide to jump in on the trend then we cant do anything about it expect for mining difficulty to jump up. I guess its just really right since i dont really like the feeling that china do all have the power as of now.

To create a coin that is not enough. Need to get her admitted. Now the image of Russia not inspire confidence in their project. No, I think that Russians will focus on the extraction of existing currencies, but to compete with China it will be very difficult.

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.

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

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?

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

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

Russia is at a disadvantage in crypto-coin mining, at least when compared to China. Most of the mining rig companies manufacture and assemble their equipment in China and therefore the capital costs are lower for the Chinese miners.

“Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future,"

30% of a $100B market with $100M. They could only dream of.
At least they have cheap electricity. As a close to the government they can eve transfer the electricity cost "to the people". But it's a smart way to get USD instead of RUB.

i also think russian involve in this crypto world to stop china from dominating, rusia also strong country. i like this competitions, it makes crypto live..

Europe imposing economic sanctions against russia 3-4 years ago may have prompted it. The latest series of economic sanctions against russia by the united states is more of the same. De-dollarization policies by russia and other nations could also be a motive. With the united states being $20 trillion in debt there are concerns over the us dollar becoming devalued/hyperinflated if america defaults on its debt.

Also after the economic crisis of 2008, bankers meddled heavily in the affairs of nations. It was bad enough that some countries like iceland and hungary banned those representing central banks from operating in their country & imprisoned other bankers who they held responsible for playing a role in causing the crisis. That movement could be one reason why russia and other nations embrace bitcoin as it could allow them to escape political meddling by bankers and the monopoly bankers have over many economies, etc.

This is one of the ways to fight the American financial system. USA wants to partially de legalize crypto (only licensed entities will be able to trade it).

Russia is a country with so much power. Vladimir Putin may be a guy that doesn't obey anyone, but in terms of trying to be in the top tier of everything he is always there. I don't doubt this RMC tokens get a great value, because they have plans on how to develop them. It will be interesting as to how China will cope with this. They will surely try to do something new also.

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.

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.

need Russia to stop the chinese dominance in mining. sick of the chinese miners and their control

I wish I live in Russia. Love Putin

Russia will dominate crypto currency world sooner or later.

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.