The Ministry of Economy proposes low rates to connect mining farms to sources of electrical energy. The Central Bank of Russia rejects Bitcoin mining, arguing that it harms the economy and the environment.

The Russian Ministry of Economy recently said that it might allow for Bitcoin (BTC) mining in regions with a constant surplus of electrical power. That would be a sign that the government of Vladimir Putin gives its support to the activity that guarantees the protocol of the pioneering cryptocurrency.

Ministry representatives believe that the proposed measures will help stop shadow mining. They also said that this would contribute to introducing cryptocurrencies into the legal framework of the Eurasian country, although that limits the production of digital currencies.

The regulatory proposal received the support of the Ministry of Energy, but the Central Bank of Russia expressed its rejection of Bitcoin.

Besides proposing to mine Bitcoin in regions with a surplus of energy, the Ministry proposed reduced rates for electricity consumption for that activity.

The Ministry considers it is necessary to recognize mining as a commercial activity. For that reason, they believe that there should be taxes on the conversion of cryptocurrencies into rubles, like in Japan and Germany.

However, they advocate for the government to offer acceptable prices for Bitcoin miners. They think that would eliminate the risks of insufficient power supply to homes, social facilities, and industries in other territories.

To that end, the Ministry proposes low rates to connect mining farms to energy sources. In that way, they seek that prices do not depend on the production site, even if it is in the generation facilities.

Therefore, the Russian Ministry of Economy considers that the connection of mining devices to electricity will be economical.

Russian Central Bank Expresses Its Rejection of Bitcoin Again

Representatives of the Central Bank of Russia recently said that they disagree with the proposals of the Ministry of Economy. They argued that non-productive demand for electricity would cause mining to the economic development.

The institution considers that Bitcoin mining would harm the economy and the environment. They believe that the competitiveness of mining in Russia relates to cheap electricity and the use of the right software and hardware.

In addition, they had proposed on January 20^th to make the mining of Bitcoin and other cryptocurrencies illegal. On that date, they argued that those assets pose alleged threats to the well-being of Russian citizens and the stability of the financial system.

The alleged threats that the Central Bank sees in Bitcoin and other cryptocurrencies are volatility and their use in criminal operations. That institution described cryptocurrencies as a financial bubble and a market-determined by speculative demand.

Putin Supports Bitcoin Mining Despite the Request by the Central Bank

The request by the Russian Central Bank had no effect, as President Vladimir Putin expressed his support for Bitcoin mining. The head of state said that the institution does not hinder technical progress and strives to incorporate the latest technologies.

After rejecting the proposals and recommendations of the Central Bank, Putin asked the ministers to discuss the issue and come to a decision.

Last week, Russia was preparing a draft law on the circulation of cryptocurrencies. That implies a radical change to use those assets under a legal and regulatory framework.

The plan does not seem to show any changes in Bitcoin mining, but it does propose recognizing cryptocurrencies as currencies and not financial assets. That implies that they will have to be subject to the laws that apply to fiat money.

The law, which could come out on February 18^th, would determine the new direction of the Bitcoin ecosystem in Russia. It is relevant to remember that almost 12% of the population of that country already uses cryptocurrencies.

By Alexander Salazar

The debt contracted by the government would reach 90,000 million dollars. This current debt runs in parallel with at least 35% of the country’s Gross Domestic Product.

The economic policy the Argentine government implemented engages with the deepening of public indebtedness. Between November 2019 and December 2021, some 50,000 million dollars had entered to circulate, according to data revealed by the economist Ramiro Castiñeira.

The director of the Econometric consultancy highlighted via Twitter data on the growth of Argentina’s public debt, following the announcement by the government of Alberto Fernández that it had reached a new agreement with the International Monetary Fund, at the end of January,

Castiñeira pointed out that, for those 50,000 million in debt, it would be necessary to include another 40,000 million between this year and the next, which would make the sum of at least 90,000 million dollars aimed at Fernández’s management.

In a subsequent message, the economist expressed that the current economic situation has the price of government bonds at 30%. According to him,  it mainly happens because the market already discounts the default of all public debt. He also forecasts that this situation will escalate to even worse levels in the upcoming renegotiations, which would take place in 2024-2025.

According to the economic journalist Julián Yosovitch, data from Facimex Valores reflects the impact of the debt compared to the country’s Gross Domestic Product also called GDP. The Treasury and the Central Bank of the Argentine Republic together gathered up at least 35% of the Gross Domestic Product.

The sum of the debt of both instances, Yosovitch clarified, is about 10 points higher than at the end of 2019. In just two years, the debt policy in Argentina increased, as in other nations in that period beaten by the pandemic.

The big question at this rate of indebtedness is: how does a debt like this get paid? The popular answer is that this debt would get paid due to the interest covering the possibility of renegotiation from 2024.

The responsibility for payment would crumble down only on the next government, assuming Fernandez doesn’t repeat his ruling, and given his time reaches an end in 2023.

More Taxes (Even for Cryptocurrencies Like Bitcoin)

The Argentine government also seems to be looking for growth in tax collection channels. The agreement with the IMF covers the intention to lessen the fiscal deficit, with goals set for this and the next two years.

This element is one of the characteristics for which the authorities of the South American nation count on bitcoin (BTC) and keep it on the radar. There are two taxes that citizens must pay, both linked to their handling of BTC and other relevant cryptocurrencies.

The mining industry has also caught the interest of the government. Firstly, by giving the use of energy for this activity various decreases in the electrical service and by considering the increase of the rates that miners in the south of the nation must pay for their electricity consumption.

Meanwhile, the official macroeconomic bet points to indebtedness, and inflation constantly reaches new high peaks. On the other hand, there are even those representatives who believe in the possibility that the index would approach 100% inflation.

By: Jenson Nuñez

The billionaire investor says Bitcoin does not have much utility and the idea of ​​BTC being a hedge against inflation is “ridiculous.”

Bitcoin (BTC) does not impress tycoon Mark Cuban. In an interview with the YouTube channel, Crypto Banter last Saturday, February 11, 2022, the star of the US version of the reality show aimed at entrepreneurship Shark Tank said that he does not see any use in the main cryptocurrency on the market and revealed that his main investments are concentrated in two Blockchain networks. The “billionaire shark,” as people also know him, said he is looking for a “viral cryptocurrency app.”

As for Bitcoin, he said that the cryptocurrency is not very useful and that the idea that the cryptoactive can serve as a “shelter” against the different threats of inflation is “ridiculous”, which, for the business mogul, is no more than a marketing slogan.

“You can tell me everything you want about El Salvador. But El Salvador has to buy its Bitcoins in dollars, like everyone else, right? So there is nothing special,” he explained.

A Blockchain enthusiast, the billionaire did not hesitate to reveal the main cryptocurrencies in his digital portfolio, “Bitcoin is a great store of value, but Ethereum (ETH) and Polygon (MATIC), a lot of which I own, you can start to see the utility. More and more applications are starting to be seen, and we will see what happens with Ethereum 2.0 in terms of GAS rates. I think Polygon has done a great job, and there are other Blockchain trying to do the same,” he argued.

Mark Cuban also revealed that he is looking for a “viral cryptocurrency app” to make new investments, as he highlighted that Blockchain networks are in a “death war” over users. At the time, he cited Instagram’s “lukewarm” start before it became popular.

“So everyone got it, (Instagram) went viral. We did not get that first viral, mainstream, crypto-based app. We will. That’s what I’m looking for in terms of investments,” he added.

In January this year, Mark Cuban revealed that apart from Shark Tank, 80% of his new investments are in crypto assets and added that he has not focused on price speculation around cryptocurrencies such as Bitcoin and Dogecoin (DOGE), as reported by Cointelegraph.

Mark Cuban does not Believe that Bitcoin Serves as a Hedge for Inflation

In a recent Twitter post, Cuban stated that “Now do a 1-year performance comparison. I said Doge was good for spending and better than a lottery ticket.   You still think btc is an inflation hedge? It is not and never will be.  Doge/btc is flat last 30 days.”

As on previous occasions, Cuban praised the doggy memecoin Dogecoin and dismissed Bitcoin as a haven for the inflation of fiat currencies such as the dollar.

The comment came in the middle of a Twitter argument with YouTube personality Preston Pysh. “Weren’t you the one pumping Dogecoin in early May? Now it has dropped -80% since then,” the youtuber had tweeted in response to a publication by Cuban, in which the investor expressed his disgust at the “lack of control” of crypto spam on the social network.

Dogecoin Is Better as a Payment Method, Claims Cuban

“The Doge community is the strongest when it comes to using it as a medium of exchange,” Cuban said in an interview last August with CNBC. At the time, billionaire and Tesla CEO Elon Musk, who is also an outspoken supporter of DOGE, agreed. Cuban had already revealed in early 2021 that he had bought Dogecoin for his son.

In his most recent tweet, the investor reiterated that Dogecoin is “good to spend and better than a lottery ticket”, something he had already said last year. He added that while the memecoin has lost ground significantly amid the current massive price correction in the market, its performance over the past year remains remarkable.

Currently, DOGE is up nearly 1,700% over the course of a year. The dog-like cryptocurrency is down 70% from its all-time price high of $0.68 reached last May. Dogecoin is trading around USD $0.15.

By Audy Castaneda