Russian authorities are now going after miners who mine cryptocurrency using subsidized electricity for the population, according to a senior energy ministry official. Energy utilities detect an increase in their consumption and try to pay it at commercial prices.
Amateur cryptocurrency miners in Russia are under pressure despite the lack of home mining regulations
Electricity distribution companies in Russia have begun to locate improvised mining farms in residential buildings by increasing the volume of energy consumption and higher loads on the network at substations, Deputy Energy Ministry Pavel Snikars revealed to the Russian press.
government official Tell The Izvestia daily said the authorities were hunting down “illegal miners”. While cryptocurrency mining is not yet regulated and such activities are not currently explicitly prohibited, utilities can prove in courts that these consumers are not using electricity for domestic needs.
Lawyers interviewed by the newspaper said that in at least 10 cases so far, suppliers have been able to oblige home miners to cover the difference between preferential tariffs for the general population and the higher rates that companies have to pay.
When an increase in energy consumption raises their suspicions, Snikars explained, utilities will initially send an inspector to check and issue a new bill based on the price of electricity used for commercial purposes. In the end, they can try to prove their claims in court.
Irkutskenergospet, the electricity distributor in the energy-rich Irkutsk region dubbed the “mining capital of Russia,” was among the first to address the issue in 2021. According to Report In August of this year, cryptocurrency miners in Siberia, where rates start at just $0.01 per kWh in rural areas, have already paid 100 million rubles in fines (about $1.7 million at the time).
Blame cryptocurrency mining for electricity supply problems in some regions
Pavel Snikar a statement Last week, Russia predicted a significant increase in the share of cryptocurrency miners in its total electricity consumption. He also emphasized that home mining is a major problem in certain areas where the infrastructure is not able to handle the loads and energy companies are taking measures to ensure reliable supplies to other users.
Russian cryptocurrency mining needs about 1.7 gigawatts of electricity, of which 50-60% is used in the industrial sector of the market, according to Oleg Ozhenko, director of government relations at Bitriver, one of the largest operators of mining farms in Russia.
Mining is one of the cryptocurrency-related activities that the Russian government wants to legalize and regulate in order to take advantage of the country’s competitive advantages for the industry such as cheap energy resources and cold weather conditions.
In November, a group of legislators Foot A bill with the lower house of parliament aims to regulate the minting of digital currencies such as bitcoin through amendments to the country’s existing law “On Digital Financial Assets”. The Bank of Russia has endorsed the legislation and expectations are that it will be adopted by the end of the year.
Do you think that home mining will remain a source of additional income for ordinary Russians in the future? Tell us in the comments section below.
Lubomir Tasev is a technology-savvy Eastern European journalist who likes to quote Hitchens: “Being a writer is who I am, not what I do.” Besides crypto, blockchain and fintech, international politics and economics are other sources of inspiration.
Image credits: shutterstock, pixabay, wikicommons
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New research suggests that baby boomers make better crypto investors
4 weeks ago
December 31, 2022
As a millennial, this is hard to say, but baby boomers do the coding better. They’re taking research methods used in traditional markets and applying them to crypto projects, according to a new report from Bybit and consumer research firm Toluna.
The report says that 34% of Boomers spend “a few days” doing due diligence on a project before investing – 50% more than other generations. Even more troubling, “64% of North American investors spend less than two hours or not at all on DYOR.”
Boomers are also likely to focus their research on technical factors such as tokens, revenue, and the competitive landscape. Contrast this with their younger compatriots, who are more likely to appreciate reputation items like a charismatic founder and “website aesthetics.”
This goes to show that being a digital and hands-on native is not as much of an advantage as people think. It actually pales in comparison to some of the Warren Buffet-style skills that older investors have honed over the years.
Baby boomers are probably more likely to retire and therefore have more free time than younger generations. It’s hard to say, but it seems the best way forward for young people is to be humble and learn from their elders.
Although crypto has many distinct characteristics that set it apart from other capital markets, it still has enough in common to allow for a decent crossover in analytical skills. After all, the price of digital assets is highly dependent on the balance of supply and demand in the market, just like the traditional markets.
Digging in Technologies This can prevent the kind of bad decision making that led to big losses in 2022. Several times I felt good about buying a token based on the project white paper and the solid narrative that drove it, but I found, upon further research, that there is a lot of capital involved. The investment unleashes imports so that selling pressure will influence prices for years to come.
Newborns who are used to analyzing company numbers and calculating price-to-earnings and price-earnings-to-growth ratios can apply these skills to data from CoinGecko or CoinMarketCap. Young generations need to know why “circulating supply” vs. “maximum supply” important and why size is critical.
In fact, cryptocurrency projects that are similar to traditional value investments have held up relatively well in the bear market. Investors are becoming more aware of the difference between protocols that issue tokens as a glorious way to raise funds and those that generate revenue and share it with their holders. So-called “real-yield” crypto projects are not unlike dividend-paying companies — something boom investors may be familiar with and possibly drive some of their investment decisions.
This is not to ignore the importance of narrative and community in modern investing and cryptocurrency in particular. For example, perennial decentralized trading platforms such as GMX, Gains, and ApeX Pro benefited from the pro-decentralization sentiment after the FTX bankruptcy.
Researching this aspect requires a good knowledge of social media, especially Twitter, which is one of the main ways to reach crypto analysts, founders, and downstreamers. Investors use these tools to find the narrative, assess where the narrative is in its life cycle, and gauge overall market sentiment.
But Millennials and Generation Z don’t really have an edge when it comes to using social media to assess trends because it’s not that new anymore. it’s a Web 2Everyone already knows how to use social media. In fact, young adults are turning their familiarity with social media into a disadvantage by overestimating it as a research tool, while baby boomers are more likely to stick to the facts.
Traditional investing due diligence continues to distinguish men from boys, just as it has throughout history. As long as that happens, baby boomers will outpace the younger generations because they do more research and tend to be more patient when it comes to investing, resulting in higher returns than the younger generations, who may jump into investing without fully understanding what they are getting into. If you are looking for someone who is reliable and knowledgeable about due diligence, look no further than your parents or grandparents.
Nathan Thompson He is the lead technical writer at Bybit. He spent 10 years as a freelance journalist, covering mostly Southeast Asia, before turning to cryptocurrency during the COVID-19 lockdowns. He holds a Joint Honors degree in Communication and Philosophy from Cardiff University.
This article is for general information purposes and is not intended and should not be considered legal or investment advice. The views, ideas and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Bitcoin investor sentiment remains steady with BTC stalling at $16,000
4 weeks ago
December 31, 2022
Bitcoin investor sentiment is deadlocked amid price faltering in the market. While the digital asset continues to hold the $16,000 level, investors retreat from the market, ensuring that there is no big move either up or down, and as a result, investor sentiment has not moved.
Bitcoin investors are still in fear
the Encryption of fear and greed It shows that Bitcoin investor sentiment has not moved much in the past month. He finished November with a score of 29 which put him right in the fright zone but since then he has been unable to break out of that trend.
The score in this indicator over the course of December ranged between 26-30 mostly, maintaining an almost straight line trend over the period. So far, the Fear and Greed Index is at a score of 28 which is up one point from last week’s close of 27.
Fear & Greed Index trends in an almost straight line | Source: alternative.me
What this trend in the Fear and Greed Index shows is that bitcoin investors are not willing to take any risk. This is why the indicator could not move into the greed zone. On the flip side, selling sentiment has not been as strong as one would expect during a time like this. If investors were to sell more of their bitcoins, it would be obvious given that the index would slide further. Instead, it continues to maintain a roughly consistent point level, which means that the hold sentiment is now dominating the market.
Will BTC See A Recovery Soon?
Bitcoin is still finding it difficult to regain the momentum it lost over the past month. This reluctance on the part of investors to do anything with the tokens has led to the price of the digital asset following the same path as sentiment. BTC has now refused to break out from the $16,000 price level.
As a result, Bitcoin’s volatility dropped to all-time lows. So it is likely that the last two days of 2022 will follow the same trend. A recovery should not be expected in any way as the momentum will continue to decline as people take a break from the markets to celebrate with family.
Instead, it is important that BTC holds above $16,000 to close the year. Anything below this level would be very bearish and could lead to more declines in the market as the bears take control. But finishing above $16,000 strengthens investors’ resolve to hold on to their coins.
BTC is trading at $16,519 at the time of writing. Its price has decreased by 0.43% in the last 24 hours and 2.01% in the last 7 days.
Featured image by Finbold, chart from TradingView.com
Valkyrie proposes to run GBTC – Bitcoin’s grayscale magazine
4 weeks ago
December 31, 2022
Valkyrie Investments has submitted a proposal to take over the troubled GBTC Bitcoin trust.
“We understand that Grayscale has played an important role in the development and growth of the Bitcoin ecosystem with the launch of GBTC, and we respect the team and the work they put in,” said Stephen McClurg, Valkyrie co-founder and CIO. In a statement posted on the company’s website. “However, in light of recent events involving Grayscale and its family of companies, it is time for a change. Valkyrie is the best GBTC management firm to ensure that its investors are treated fairly.”