Crimeans and bitcoin: minim in energy, tradim via VPN

© RIA Novosti / Vladimir Astapkovich in photobacteria coin cryptocurrency bitcoin. Archival photoCrimeans and bitcoin: minim in energy, tradim via VPN© RIA Novosti / Vladimir Astapkovich the image Bank

This year, the bitcoin broke the historical high, now exchanges offer more than 16 thousand US dollars per unit of cryptocurrency, although at its start it was worth less than one cent. «The crypt» has shown rapid growth, having risen in price from September of the current year almost 13 thousand dollars. Of course such a leap has not gone unnoticed and more and more people have become interested in cryptocurrencies and mining (their prey). In addition, on the Chicago options exchange for the first time in history, launched a bitcoin-futures (futures contract of purchase and sale of assets with a prescribed price levels and delivery times), which further fueled interest.

Not passed bitcoin mania by Crimeans, especially because working with this cryptocurrency sanctions have no effect, because in the world there are regulators of this system. The correspondent of RIA Novosti Crimea understand how it works, where such a course and how the inhabitants of the Peninsula earn bitcoins, which experts call a «bubble».

Using a VPN connection or directly

Crimeans and residents of all points of the globe, where they pitched their network of world wide web, you can without any problems to work on exchanges, trading in cryptocurrency, the benefit of the market not controlled, as to make it impossible. About it RIA Novosti said the Crimea Mikhail Stalin, an expert on blockchain technology (the blockchain is a method of storing data without being connected to a common server — ed.). In the extreme case, if the input to the exchange is not possible with the subjected territories, there are always proxies.

«VPN has not been canceled, and some sites altogether do not block access to him. Crimeans wishing to engage in trading, just go to the website of the stock exchange and be familiar with the rules, which will tell you which payment system you can buy foreign currency», — said the expert, adding that cash of cryptocurrency in the Crimea is possible, however, through intermediaries.

«There are money-changers who are willing to exchange bitcoins for Fiat (paper — ed) money or Vice versa. They charge for this roughly 15%,» explained Michael Sturgin.

However, in the whole of Russia, the expert makes far disappointing for owners of cryptocurrencies forecasts: most likely, in Russia they try to deny.

«I think bitcoins will be banned. The government is not profitable to allow that it may not regulate. With bitcoin the same story as VPN to regulate it will not happen» — gives disappointing forecasts specialist.
Mining or trading that is the question

If on the stock exchange to sit too lazy, you can always mine or mine bitcoins. The event is costly, but does not require constant intervention and surveillance of the course of bitcoin. In fact, the mining of bitcoin is the solution of the computer complex mathematical problems, which appear units of cryptocurrency, so to speak, as a reward for their efforts.

«Mining is a mining hashes (blocks, — ed) information. This solution of complex mathematical problems, at the end of what appears, so to say, the key for the block. Mining now people are doing that have very large computing power or those who specifically builds a farm (in fact, a complex system based on parts of computer — ed.). But «mined» not only bitcoin, but other cryptocurrencies that are cheaper, and therefore make them easier. The miners hope that in the future the price will rise. A farm is a costly story: good equipment costs a lot of money, it takes a lot, plus there is a certain amount of electricity which is spent on computing power», — said Mikhail Stalin.

And no matter how attractive and accessible exchange of cryptocurrencies, all Crimeans are engaged and mining. For example, Alexander «contains» house «the farm». However, he immediately clarifies that this is not cheap, but nothing to do: pay for the light and dust wipe.

Electricity, contrary to popular online opinion, the farm will consume not as a kettle.

«If you decide to set up a farm at home, it will be quite small and to consume electricity is about 1 KWh,» explained Alexander.

According to him, all this «iron happiness» will pay off in the case of instant exchange bitcoin for hard currency about a year.

«Daily income varies, but generally farm raised courses pays for itself in less than a year. The payback will be faster if there are more blocks, but after payback net profits will be more,» says Alexander, stating that if you do not cash the cryptocurrency in the hope of a strong growth rate, it is possible for six months to close the issue of the cost of the hardware.

There is another advantage, says miner, — when the farm work, the house is literally warm. And if you work a lot of farms, it is generally hot.

«Farms produce a lot of heat. If the apartment more than one or two farms in the winter you can even turn off the heating and is very comfortable. With the installation of four or more farm — houses to keep them is simply impossible, because it will be very hot and the energy consumption will increase significantly», — says Alexander.

The young man is sure that the farm is more secure than exchange. «If to translate everything into numbers, at the moment mine is not as profitable as purchase bitcoin and to go on exchange. But in exchange you lose out on the course. The farm is more stable — it works, a currency is», — he assured.

However, Michael Sturgin with this position do not agree. «People are now more turned to look for the trading of currencies. For example, the price of bitcoin in September was about 3 thousand dollars, buying bitcoins for 10 thousand dollars in September and sold them today, it would be possible to 160 thousand dollars. It is much more profitable than buying mining equipment,» — he explained.

Hipanema around bitcoin

In world practice, not all experts of the stock market feel the delight of the buzz around cryptocurrencies. One of the leading investors in the UK Neil Woodford 11 December this year in his Twitter compared the noise, the commotion around bitcoin, the «Tulip mania» (the hype around the Tulip bulbs that arose in the early seventeenth century in Holland and led to the economic crisis — ed.).

Crimeans and bitcoin: minim in energy, tradim via VPN© RIA Novosti / Vladimir Astapkovich in the Bank»Worse than tulpenmanie»: bitcoin called the biggest bubble in the history of Finance»From the beginning, bitcoin soared from $ 1 thousand to 16 thousand. This is not a new asset class, it is not functional cryptocurrency. A tool for speculation — the last day of the Tulip bulbs,» wrote Neil Woodford.

Small lyrical digression. «Tulip mania», which occurred in the Netherlands in 1636-1637 years, has resulted in strong economic crisis. The story revolved around the flower bulbs, which were introduced to Europe from Iran. A bizarre Tulip has won the hearts of many fans of variegated flora and soon the bulbs of some varieties began to be sold at exorbitant prices.

Insanity slowly grew stronger and as dig up the bulbs before the term strictly is not recommended, started trading futures — was long-term contracts for the supply, prices have continuously soared, eventually reaching a 60-fold increase. Isn’t that like the story with bitcoin?

Point in «tulipomania» set in 1937, when one of the largest auctions of the participants, apparently sobered, refused to buy the bulbs at exorbitant prices. The market began to crumble, but the futures contracts remained in force and to break them was impossible, because the conservative Dutch believed failure to comply with written undertakings crime. Wallets buyers, and at the same time and skins sellers, saved the trial court which invalidated all contracts concluded in 1936-1937.

Crimean experts with Neil Woodford fully agree, they say, bitcoins may not «tulips», but «bubbles» accurately.

The Ministry of Finance proposes to prohibit payments in bitcoin. Support?

  • Yes, cryptocurrency is a large «bubble»
  • No, Russia can’t stay aside from the main trend of the world economy
  • I still don’t understand what cryptocurrency is


  • 53.4%

    Yes, cryptocurrency is a large «bubble»

  • 15.2%

    No, Russia can’t stay aside from the main trend of the world economy

  • 31.4%

    I still don’t understand what cryptocurrency is

All proygressive»Bitcoin is a «bubble». But the Internet also once was. I think at the end of all this will be something good, however, and hundreds of companies will crash and we about them remember. These «bubbles» should be is a revolution. Bitcoin like all cryptocurrencies are not backed by anything. There are SEO projects who claim that their «crypt» is backed by oil, gas, diamonds or gold, but in fact none of these currencies does not have a «gold reserve». They are all «live» on the faith of the people,» explained Michael Sturgin.

At the same time, the President of the Center for innovative technology and social programs in the Republic of Crimea Zarema Kuklina said that cryptocurrency is a «bubble» because it is not for a legislative solution.

«The law should be such thing as a «cryptocurrency», «mining», «ICO» and «smart contract» (computer algorithm for the conclusion and support of contracts in the technology, «the blockchain» — ed.). Without the document, which will be a kind of control system that is no good we come. Must be legal mechanisms for the issuance and sale of cryptocurrency. Moreover, the document must be created by analogy with the regulation of primary placement of securities,» said Kuklina.

In fact bitcoin was the first cryptocurrency market, which is now hundreds, which gave him the opportunity to be on the top of the food chain. Move «pioneer» nobody managed. Nearest competitors look rather lonely in the background and can boast a cost of no more than 700 bucks per unit.

Crimeans and bitcoin: minim in energy, tradim via VPN© RIA Novosti / Vladimir Astapkovich in photobacteria currency and virtual exchanges in the world,»Bitcoin is now the most expensive bitcoin as the first. This «pioneer» of the market. Now he has plenty of competition and the first of them — Etherium, developed by a programmer from Canada of Russian origin, Vitaly Buterin», — said Mikhail Stalin.

The main reasons for frenzied growth of the bitcoin exchange rate on international trading platforms — the so-called HYIP, or, in plain language, the hype.

«The cause of frenzied growth was a HYIP, because more and more people that are interested in cryptocurrency. The implementing state, where the exchange starts trading futures, what fuels the interest in this story and people’s faith in bitcoin is growing,» — said the expert.

If HYIP has become the basis of growth, i.e. the factors causing «fever» or as they call this process people who graduated from Economics, the volatility of the exchange rate. One of the reasons for the jumps of the course can be, for example, the bizarre refusal of a particular country from any relationship with cryptocurrency. In this way China went, starting to limit its turnover in September this year. Decision led first to the collapse of the bitcoin exchange rate a couple of thousand dollars and cover trading on two of the three leading Chinese exchanges. The baton, according to Michael Stolina picked up self-confident the Japanese, moving himself to the exchanges of China. While the Chinese biting elbows, bitcoin exchange rate responded to the strong growth.

Crimeans and bitcoin: minim in energy, tradim via VPN© RIA Novosti / Vladimir Astapkovich fotosencibilization in the cryptocurrency market have exceeded five hundred billion dollarvalue interesting is that initially this «crypt» was most popular in the «deep web» or, in correct language, Dark-net. This «dark side of the Internet,» which is accessible only with certain browsers and where are the sites for trade of all sorts of malosolone or even illegal things such as drugs, weapons and forged documents. The creators of trading platforms quickly realized that cryptocurrency (the source of which is simply impossible to track and its owners anonymous) is an excellent method to conduct calculations «blind», without giving their clients.

«The first application of Dark-net was because people wanted to hide information about themselves and their spending, but cryptocurrency is just fine for that. Now she has a lot of applications, including the circumvention of sanctions in the Crimea, because the market is unregulated and can invest in the economy,» said Michael Sturgin.

Crimeans and bitcoin: minim in energy, tradim via VPNCC BY 2.0 / TechCrunch / Pavel Durov»Digital gold» Pavel Durov told about their investments in bakonydraco soon bitcoin still broke out of the «dark web» to the masses, and now is steadily gaining «financial weight».

Bitcoin is the most valuable cryptocurrency in the world designed by a person or group calling itself Satoshi Nakamoto. The first launch occurred on 3 January 2009, when the cost was several times less than one cent. At the time of writing of this article on the world market operates and grows 16,74 million bitcoins, and their total value is 13 755 000 000 (810 207 708 333 rubles).