Who else needs proof that any state tries to keep its people on the brink of poverty? Russian officials are doing everything possible to prevent miners from becoming richer and more successful. Introducing taxes on cryptocurrency ownership seemed like a small step to them. Next in line is tracking mining activities through providers.
Russian Oligarchs Are Getting Rid of Competitors
It’s amusing — people buy mining equipment at their own expense. Some even take out loans at high bank interest rates. At this stage, the government does not see that people incur colossal expenses and are at risk of losing everything. Of course, it’s easier to put obstacles — banning cryptocurrency mining at the network protocol level.
And any miner who earns decent income from mining is a potential investor for the state. He and his family (friends) can start a business, buy a car, housing, clothes, groceries. All of this contributes to GDP. But no. Officials see this as a danger and want to plunge miners into debt to seize everything from them.
The issue is not limited to Russian regions. Such schemes are relevant in the USA and Europe. No one wants people to have additional income during these challenging times with unstable economies worldwide.
The State Duma’s Fight Against Miners
The law has not been passed yet, but it will definitely be implemented soon. The process is very simple. Mining can be easily tracked through used protocols and ports. Therefore, providers can do this in a couple of hours even for millions of subscribers.
According to the initiators of the ban, the problem lies in high electricity consumption. But wait. Russia exports electricity abroad. This is one of the sources of income for the country. Miners pay for electricity at favorable rates for the supplier. The more energy they consume, the more profit power plants and suppliers make. It’s logical.
Particularly amusing are explanations about the load on the power grid. That’s a lie. In any country, this problem is addressed by expanding the capacity of the electrical network. They replace cables, introduce additional lines. For some reason, no one wants to discuss the issue of nighttime dumping of excess electricity into the ground at nuclear power plants. That is, to prevent an AEC reactor from exploding, electricity can be burned into the ground in megawatts. And selling it to people at 2-3 times the price — that’s a load on the network.
The real problem with mining is different. No one wants new wealthy people in the country who could compete with oligarchs, for example, in elections or tenders. The powerful prefer to keep the people in a “stall,” like animals in a circus, working for food. Yes, taxes can be paid on mining. No problem. But the existing law cannot distinguish between private individuals and commercial organizations. Whether you earn $10 a day or $1000 — pay the same. There is no justice.
The Future of Mining with IP Protocol Ban
Mining has, is, and will continue. If banned at the provider level, the Chinese will come up with some network converter. That can decode the protocol into standard TCP/IP for email or surfing traffic. Yes, this will incur additional costs. But no miner will give up earning. Because 99% of miners have equipment bought on credit. And debts must be repaid.
It’s simply unclear why all these moves to pass laws. It’s impossible to tax cryptocurrency holders. As long as more than 50% of the population live below the poverty line, no one will come out of the shadows. Why? Because if you work officially, mine Bitcoin. Pay taxes — and the authorities will definitely come:
- Tax authorities with document checks.
- Fire safety inspectors.
- Police for noise complaints, for example.
- And doctors will come with proposals.
