Peskov denied reports of Putin’s consent to allow mining in a number of regions of Russia.
Reports that Russian President Vladimir Putin agreed to allow mining in a number of regions are not true. The corresponding assessment was given by the press secretary of the President Dmitry Peskov in a comment to RIA Novosti .
“Not. Such proposals have not yet been formulated at all,” the Kremlin spokesman said.
Thus, he refuted Bloomberg’s information, published with reference to anonymous sources: the agency claimed that the head of state considers it possible to legalize mining in regions with a surplus of electric power capacities, such as Irkutsk, Krasnoyarsk and Karelia. Putin, the publication pointed out, supports the idea of the Russian government to tax and regulate cryptocurrency mining, but does not agree with the proposal of the Central Bank to completely ban it.
ALSO READ: Money Laundering With Crypto Rises in Charts Yet Maintains A Low Record : Chainalysis.
On January 20, the regulator made a tough report on restrictions for cryptocurrencies in Russia, in particular, by proposing to ban mining. After the publication of the document, it turned out that the State Duma and the government do not support the position of the regulator. On January 26, Putin asked the Central Bank and the Cabinet of Ministers to come to a consensus on the sector.
what is mining?
By mining, you can earn cryptocurrency without having to put down money for it.
Bitcoin miners receive bitcoin as a reward for completing “blocks” of verified transactions, which are added to the blockchain.
Mining rewards are paid to the miner who discovers a solution to a complex hashing puzzle first, and the probability that a participant will be the one to discover the solution is related to the portion of the network’s total mining power.
You need either a graphics processing unit (GPU) or an application-specific integrated circuit (ASIC) in order to set up a mining rig.
- This convention is meant to keep Bitcoin users honest and was conceived by Bitcoin’s founder, Satoshi Nakamoto.
Blockchain “mining” is a metaphor for the computational work that nodes in the network undertake in hopes of earning new tokens. In reality, miners are essentially getting paid for their work as auditors. They are doing the work of verifying the legitimacy of Bitcoin transactions. This convention is meant to keep Bitcoin users honest and was conceived by Bitcoin’s founder, Satoshi Nakamoto.1 By verifying transactions, miners are helping to prevent the “double-spending problem.”
Double spending is a scenario in which a Bitcoin owner illicitly spends the same bitcoin twice. With physical currency, this isn’t an issue: When you hand someone a $20 bill to buy a bottle of vodka, you no longer have it, so there’s no danger you could use that same $20 bill to buy lotto tickets next door. Though counterfeit cash is possible, it is not exactly the same as literally spending the same dollar twice. With digital currency, however, as the Investopedia dictionary explains, “there is a risk that the holder could make a copy of the digital token and send it to a merchant or another party while retaining the original.”
Let’s say you had one legitimate $20 bill and one counterfeit of that same $20. If you were to try to spend both the real bill and the fake one, someone who took the trouble of looking at both of the bills’ serial numbers would see that they were the same number, and thus one of them had to be false. What a blockchain miner does is analogous to that—they check transactions to make sure that users have not illegitimately tried to spend the same bitcoin twice. This isn’t a perfect analogy.