Topic: Russian Ministry wants to legalize Bitcoin mining in specific areas - page 4. (Read 664 times)

Russia being bullish about bitcoin is very good for. They have vast energy resources so mining on huge scales is no problem. I guess the only negative is if the US does the opposite because of bad relations with Russia & comes down hard. That would really not be good.

I am not thinking China will think of mining Bitcoin, total ban was place on cryptocurrencies in China, China like to just be totally centralized. It is obvious China knows the benefits of Bitcoin mining but just that it does not want anything decentralized.

The central bank of Russia were making moves to make sure cryptocurrencies are banned in Russia until the president Vladimir Putin talks good about it and not long the bank of Russia is working to accept bitcoin as a currency. If the bank of Russia was successful, cryptocurrencies would have been banned in the country.

This is exactly one of the main reasons why I stopped my mining operations as a "small-scale" home miner in the past and the same thing would probably happen to a lot of individual miners in there!

This may sound like I'm contradicting myself, but if a significant amount of individual miners, for some reason decide to continue their home operations ^{[even with the increased rates]}, then they'd probably have a hard time achieving the above line.

The Russian economy is in tatters at present and they have few outlets besides selling resources. Through corruption and crime their businesses are crippled, because nobody can succeed to a large scale independent of government, they either get bullied to relinquish control or worm their way into the existing establishment spiderweb to survive - always having to watch out they don't get undermined. It is a highly inefficient setup and there are currently sanctions layered on top of it. The Russian people themselves are just as competent as any other country and could flourish, but they are stunted by the crony government system they fall under. The Russian government is basically seeing mining as a money making investment, they can convert their energy resources into hard cash instead of selling it as a raw commodity. All these areas will be strictly controlled with the majority of revenues going to the government now they see a money making opportunity in it.

It's good that Russia is recognizing bitcoin and its associated activities. Recently they have legalized bitcoin as a currency and now this incentive to allow mining at a cheaper cost. Overall this is positive for a strict communist government.

Usually Russian government doesn't have a lot of incomes except weapons sale. So if they are trying to open up in crypto world and create opportunities for them, that's definitely positive! But in Russia, don't trust a thing without seeing it in reality!

the average US person wastes 1.18kw/h per person (average 2.53 people per house = 2.99KW/house)
the average RU person wastes 0.91kw/h per person (average 3.2 people per house = 2.91KW/house)
the average CN person wastes 0.61kw/h per person (average 3.02 people per house = 1.84KW/house)
(yep russia is 58% worse than chinas house usage. but is 22% better than US per person)

imagining russian KWH price was say
$0.06 residential
$0.05 industrial(farm/factory)
$0.09 business(office/retail)

i would presume a regiment like this for homes:
residential: first 2KW perH=$0.04, next 3KW per H=$0.06 anything more per hour=$0.09
this way bills are cheaper if they stay below 3kw per h. the same as now if peaking over this (when heating/lights needed seasonally)
and excessive if used excessively

normal usage 2.9KW/h = 69.84kw/d
EG
= 69.84kw/d @ 0.06 = $4.19 (old standard price)
EG (my idea of rates)
= totals daily  48kwh @ 0.04 =$1.92 21.84kwh @ 0.06 =$1.31
= $3.23 (my idea price)
idea being if people can get household below 2kwh to be like china. they can pay $1.92 for 48kw/d (2kw/h)

EG normal usage 2.91HW+ an asic(3.25kw)
= 6.16kw/h = 147.84kw/d
= daily cost 48kw @ $0.04, 72kw @ $0.06, 27.84kw @ $0.09,
= total             $1.92    +        $4.32       +            $2.51
=$8.75 ($5.52 to run one asic for a day)

EG normal usage 2.91HW+ an 3 asics (6.5kw)
= 9.41kw/h = 225.84kw/d
= daily cost 48kw @ $0.04, 72kw @ $0.06, 105.84kw @ $0.09,
= total             $1.92       +      $4.32       +        $9.53
=$15.77 ($12.54 to run two asics for a day($6.27 each asic))

thus making it more expensive to run more then 1 asic from home
..
i would presume a regiment like this for industry:
industrial: KWH in renewable region=$0.033, KWH in fossil region =$0.05
this way bills are cheaper if the run industry in certain areas, without negatively impacting those already settled
where by those settled in fossil fuel can push their energy company to upgrade to renewable to offer discount to customers

I do think that Russia is currently looking for ways to increase their economic inflow right now. They want to do everything that there is to make sure they have a strong political presence in the area. I do think that government will try and put the controlled farms in such a way that they would have complete control and administration over the areas, giving the most profits to the government in return.
This controlled mining farms can be taken as a unique business proposition for most people and many countries instead of making things illegal can actually take this approach as well.
Good step for the future of Bitcoin mining for sure.

Exactly like Venezuela. They imposed rules which were made to ilegalize small miners, of course there is a group of large companies getting all the benefits, no doubt close to the gov. Those two govs are close "friends" after all...

I don’t think we need to be concerned about mining being commercialised. I intact see it as way of accepting the crypto currencies and thus Russia motivating others for the same. If china follow them as friendly nation then rival nations would go for full fledged mining just because to stay in the competition.

These things happen when it’s all about commercial competition too. With the crypto gaining huge attention all the countries have no options but to accept it and inject the same into official system.

If I understand correctly, mining is not currently banned in Russia, so it is not clear what exactly they want to legalise? It seems that the government wants to make private small farms stay in the shadows, it will be beneficial for the big miners, which are likely to be owned by those close to the government.

How are the miners that have been going on in Russia so far, they seem to be fine, long before this news was published, where has the ministry been, did he forget to legalize the existing miners.

As far as I know in Moscow, if I'm not mistaken it is close to the Angara River, approximately 4,000 kilometers if we depart from Russia, There, there are companies, operating on data and mining, for Bitcoin.

If the ministry makes laws against Bitcoin miners and taxes for legal miners, I think they can do it, reasoning: electricity, internet the tools russian miners need have it all or some other reason russia is a cool country to cool off the heat, I think that what the Russian ministry wants to do is proper and professional steps for mining.

I don't see anything controversial in keeping everything in line with the law - someone sets up a crypto mining farm, negotiates the price of electricity and eventually pays taxes on what he earns. Anyone can try to mine to a minimum, to stay under the radar - but all the big mining farms anywhere in the world pay taxes, one way or another. When it comes to the US - everything is pretty clear -> IRS Guidance On Cryptocurrency Mining Taxes

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Well, Russia has never banned crypto mining, only the focus of the miners has been on China, logically because of cheap energy, labor, and the availability of mining devices. I see that you still have a theory that China has no choice but to have to allow crypto mining again just because the Russians or the US will do it - but they do it all the time. China and Russia are among the last countries in the world to accept Bitcoin the way you imagine it, China has said a clear NO, Russia is closer to that attitude than to something positive.

And as far as 2018, Russia or at least some part of it are into mining already isn't it?

There are even news that they have put up or some entity has some mining facility established already. That's why I was surprised about the news recently saying that Russia will ban everything related to crypto. If so, if crypto mining an exception?

Or this news proved again not to trust Russia because they totally contradicts themselves and take everything with a grain of salt?

If Russia starts mining Bitcoin, China will start mining Bitcoin again too, or did China truly “ban mining” within their country? The West have given warnings that they will ban Russia from using SWIFT, what does everyone believe Russia will do? They have made the narrative more obvious for a need of an open, permissionless, censorship-resistant, ledger/protocol for money.

This is about Russian ministry to legalize Bitcoin mining in some specific areas in Russia.

Russian Ministry wants to legalize Bitcoin mining in specific areas


With this I think even electricity from other businesses including households can be segregated from the energy bitcoin miners are using. This is not what I am concerned about, what I am concerned about is this:



Normally, Bitcoin mining is censorship resistant, I do not know how this will be taxed in a way the government of Russia will not make Bitcoin to becoming a centralized asset like making miners addresses compulsorily mandatory for submission for the government to track in a way the government can be able to tax Bitcoin miners in Russia. Or how is this done in countries like US, is Bitcoin mining taxed?