Mining in Russia and other countries regularly turn on either red or green light. Either the prosecutor’s office is excited, then it is not. At the same time, mining hotels, exchangers work, someone even accepts cryptocurrency, and someone scares that it is impossible.
The more prohibitions, the worse it is for people and the economy. The mad printer, the prosecutor’s office and the like do not produce added value, do not pay taxes from it to the budgets, but they interfere with the production of others. Those states where it is allowed go ahead, while the rest are lagging behind.
In Russia, those who are brave and who can go forward are moving forward. Let’s talk here about how to mine in Russia and stay in the legal field, even though there would be a person, and there is an article, as in that joke:
– And if Elon Musk was born in Russia?
– Then he would have served his first term for PayPal.
The anecdote turned out to be very relevant, because all electronic money is actually outlawed and dies. Formally, they are not prohibited, but it is extremely difficult and unprofitable to use them for business.
How to mine legally
Mining in Russia is not prohibited. Anyone can buy or rent mining equipment and mine. Prohibitions and restrictions apply to the import of such equipment. It is encryption, so the law comes into force here – the equipment must be coordinated with the FSB.
It’s good if anyone who decides to mine is an individual or individual entrepreneur. You can legally pay tax. If you suddenly decide to do this by selling cryptocurrency, you are unlikely to be very interested.
If you are a legal entity, you need to be careful. You can’t just drain the money for mining, and then cash it out or use it for calculations. Although the markets in Moscow, where the Chinese trade, are actively taking advantage of this. In the markets, everything is for cash. Then this cash goes to the crypt and is transferred abroad. They wrote about this more than once, but the relevant departments are not being initiated …
A legal entity can, in theory, mine, then sell the mined one, or it is better to just sell the rent of computing power in the amount required for mining the required amount, and pay taxes from the difference. In fact, a legal entity leases equipment here. An absolutely legitimate business. If you try to make transactions with cryptocurrency, then the chances of getting questions and breaking something increase many times over.
Where to start for a beginner
Naturally, from self-education. The first step is to just read as much as possible on the topic of mining. It is only worth reading trusted resources, like Wikipedia and Habr, where there are user comments.
Next, you need to register the wallets of those cryptocurrencies that you intend to mine. Try to buy, transfer, sell small amounts.
You can look for someone with experience among your friends or contact a mining hotel, where they will help you with advice for free, and for money they will take over the administration of your equipment. But do not forget that you will have to think and store accesses yourself.
An acquaintance lost his bitcoins by placing access to the wallet on a virtual server where another person had access. Another client of ours left default ssh access passwords and did not change them. As a result, for a while, his equipment mined cryptocurrency for the hackers’ wallet.
Nobody will put their head on you. Security is inversely proportional to convenience. The people who help you set up and monitor your hardware should not have access to your wallet.
When to mine
The topic of crypt regularly pops up in waves after the next jump. Since 2010, we have experienced more than one such influx of clients. We are mostly not about mining at all. In 1999, a web studio was opened, hosting appeared. Since 2005, we have been providing server hosting and rental services. In 2007, the first data center was opened in Moscow, in 2009 – the second. And, starting from 2010 or 2011, they began to bring us mining equipment.
The penultimate wave of mining was in 2017. Then the course dropped and the people disappeared. Many competitors who had this as their only business closed down.
At the end of last year, another boom began. Every month, mining equipment is brought to us, and we know for sure that soon this wave will also pass.
Gentlemen, you are doing everything wrong and do not listen to smart advice.
It is necessary to mine while the equipment is cheap.
Back in the fall, you could buy a little outdated equipment that cost almost nothing. In the spring the price of this equipment has become more expensive than the new one 2-3 years ago.
Using the example of the Manli P106 video card: in December 2019 it could be bought for 2,500 rubles, now – for 20,000 rubles, in December 2017 a new one cost 14,500 rubles.
Mining takes a long time, 3 years or more. Those who mined 10 years ago, or even 4 years ago, absolutely do not care that Bitcoin fell by 50% or even 70%.
It’s like on the stock exchange. Falls – buy more. Grows – sell. And many do the opposite: they buy at the peaks of growth, and sell at the dips.
How much does mining cost
The cost of equipment fights back in 1-2 years. If you bought it before the growth wave, you can beat it off in a few months.
You can find out the current electricity tariffs on the Mosenergosbyt website. See for legal entities.
Some strange policy that for legal entities the rates are higher than for individuals. Legal entities buy in bulk. Wholesale is always cheaper. And most importantly, legal entities are jobs and taxes. But such simple truths do not reach the authorities.
Add to the electricity tariffs the rent of premises, staff salaries, communication costs, cooling costs.
The calculation of the cost of placing a farm with a capacity of 1 kW in a commercial data center may look like this:
(6.3 x 730 x 1.35 930 1017) x 1.10 = (6208 1947) x 1.10 = 8970 ₽, where:
6,3 ₽ / kW·h – electricity tariff;
730 hours – the average number of hours per month;
RUB 930 – total expenses for rent, internet, security and other depreciation expenses;
1017 ₽ – total expenditure on wages, including round-the-clock shift of engineers;
1.10 is the organization’s rate of return of 10%.
Where to mine
You need to mine in a safe place. Some of the most reliable are data centers, because they have existed for a long time, have a large number of clients not related to mining, and do not depend on fluctuations in the cryptocurrency market. Data centers have extensive experience in organizing server rooms. You can be sure that the communication channels are backed up, and you will not find yourself in a situation where, due to the failure of a single channel, your equipment will be idle. Industrial cooling systems are also used in data centers.
Over the years, more and more people come to us who are dissatisfied with our high prices relative to some others, but they have already burned themselves and made sure that miracles do not happen. The cost of mining cannot be lower than the price of electricity in the region multiplied by 1.5. If you see such a proposal, then either electricity is stolen there, or they are simply collecting your equipment in order to disappear with it. In both cases, you risk equipment and money.
Yes, electricity is cheaper in the Irkutsk region. But add the logistics, the inability to arrive promptly in person, and other risks. And it will turn out to be the same. The cost of electricity with the growth of the crypt at times – does not make the weather. The price of electricity can differ by a factor of two, while cryptocurrencies are growing tenfold.
The most correct thing is to first of all look at the reliability of the company. How many years have there been, what reviews, does it work by bank transfer and EDI, does it accept bank cards for payment, what is the average number of employees, the percentage of taxes on turnover, court cases, management contacts, communication licenses. Take a guided tour.
Initially, like Alexey Pivovarov in the “Editorial”, I did not want to draw any conclusions. Readers should draw conclusions. But I was still asked to summarize:
- Pinocchio will still bury their gold coins on the Field of Wonders in the Land of Fools. If you do not feel the strength to deal with complex matters, then keep your money in a savings bank or in the stock market.
- Cryptocurrency is beautiful and reliable in that no bank or court will block or take it away from you. But it also has a drawback – if you lose or forget your password, you lose access to your money.
- If you don’t try it, you won’t know. Start small. Those who bought one bitcoin ten years ago did not regret it. Get comfortable with time. No harder than driving a car.
- You definitely shouldn’t mess with the exchanges. More than one exchange has disappeared with all the money. Keep the crypto in your wallets.
- If you decide to mine, then choose a mining hotel based on a data center that has been operating for more than 10 years.