Mining biography

The article was checked: traditional money is issued by the central bank. There are no Central Banks in the world of cryptocurrencies. The only way to get a crypt is mining built on computers to solve mathematical problems. The essence of mining is that computers in various places around the world conduct calculations and thus generate new blockchain blocks.

This system is compared with a large book containing all the notes about what is happening with cryptocurrency. She is a platform on which the work of any cryptocurrency is based. Roughly speaking, the work of miners is to choose from millions of combinations a single hash result of a certain mathematical transformation of the block from the previous block-so you can “attach” another block.

For the award, many miners are hit at the same time. Who did this first - he receives a reward. Mining of the most popular cryptocurrency - bitcoin - is no longer possible without special expensive equipment. If at the beginning and middle of the zero even a home computer with a powerful video card was suitable for this, now industrial computing power is required. The fact is that bitcoins cannot be more than 21 million.

Most of them have already been generated, and each new bitcoin requires more and more capacities. The miner business, in fact, consists in processing a large amount of electricity in exchange for bitcoins. In the year, a cryptocurrency boom occurred in the world in the world against the backdrop of explosive bitcoin growth. In Russia, which, according to experts, has great potential for mining due to mild legislation and cheap electricity, cryptoors and industrial mining areas where the Bitcoin mining equipment began to appear.

In the year, "cryptosima" came. The cost of bitcoin collapsed, and many mining enterprises "Cryptosim" did not survive. And in the pandemic there was an interest in alternative methods of saving capital, along with it and cryptocurrencies. The lion's share of this growth falls on underground miners consuming electricity on an industrial scale, but counting on it by tariffs for the population.

This caused the overload of energy networks in the region. The authorities began to anxiety. The head of the Ministry of Energy Nikolai Shulginov said that in Russia it is necessary to exclude a situation where miners consume electricity at the same low tariffs as the population. The legalization of mining in Russia in the year on August 8, President Vladimir Putin signed a law that legalized cryptocurrency mining in Russia.

The bill was discussed from the year and initially contained a ban on organizing cryptocurrency circulation in the country. But then the wording was softened before the ban on the offer is crypt away. The bill introduces into the legal field such concepts as “mining”, “mining-pool” of the association of miners, “mining infrastructure operator”, “organization of circulation of digital currency”.

In order to engage in mining legally, Russians need: to add themselves to the special register of Minzifra - for individual entrepreneurs and legal entities; observe the energy consumption limit - for individuals, it is different - to register an individual entrepreneur or legal entity; report on the obtained cryptocurrency and about transactions with it to Rosfinmonitoring; Provide the addresses of your cryptocurns in the Federal Tax Service, FSB and Rosimunstra.

If an individual or legal entity is directly busy in the production and transfer of electric energy, it is forbidden to use the official position for mining and combine these two activities. To avoid a situation when miners create an excessive load on the network and electricity deficiency, the law provides that in separate scarce regions, mining can be prohibited.

In addition, the Government of the Russian Federation, together with the Central Bank, may establish certain requirements for the activities of miners. So far, the law provides for one specific ban: it is impossible to offer the extracted digital currency to an unlimited circle of people, to advertise and organize its appeal. It gives definitions of the concepts of “digital currency” and “digital financial assets”, and also regulates the rules for the purchase and sale of these assets.

But there is no definition of mining in the law. Facts by scientists from the USA believe that the extraction of digital currency poses a serious threat to the climate of the Earth. After all, the volume of electricity, which is used to extract bitcoins, exceeds the energy consumption of entire countries. The article was checked by: Mikhail Khachaturian, K.