Crypto Craze: Russians buying electrical power stations to mine cryptocurrency

Businessman Aleksey Kolesnik has indirectly confirmed acquiring power stations to mine cryptocurrency, saying mining will only be possible after Russia adopts the relevant legislation

This may just be the craziest, most shocking thing someone has done in pursuit of cryptocurrency yet. Businessman Aleksey Kolesnik may just have purchased two electrical power plants, purely for the sake of cryptocurrency mining.

We’ve heard reports of private investors taking out second mortgages on their homes for bitcoin, but Russia just upped the ante. For what it’s worth dear friends, please don’t put any specific amount of money into cryptocurrency, that would break you if you lost that money forever. The same could be said for any venture – invest wisely!

That said, check out as RT reports on this latest, shocking, cryptocurrency adventure:

Two electric power stations in Russia have been sold for the purpose of cryptocurrency mining, the Kommersant newspaper reported, citing sources. It is the first such deal in the country.

The two power stations are in Perm Region, on the western slopes of the Middle Ural Mountains, and in the neighboring Republic of Udmurtia. The facilities will be used to create a data center and a center for cryptocurrency mining, the newspaper reported. The stations were reportedly sold for about 160 million rubles (about US$3 million).

The reported new owner of the power stations, businessman Aleksey Kolesnik, has indirectly confirmed the acquisition, but said that cryptocurrency mining will only be possible after Russia adopts the relevant legislation.

Russia currently has no laws on digital money. The government is mulling over how to best regulate cryptocurrencies, with Deputy Finance Minister Aleksey Moiseev suggesting in December that mining bitcoin and other forms of online money would be illegal, but buying them or trading them would remain within the law.

There is no single opinion about cryptocurrencies in Russia. Some call them money surrogates, and their issuance is of concern as the turnover of the currency in Russia is a criminal offense. Other deputies say that cryptocurrencies are a way of bypassing Western sanctions and have even suggested building a town for cryptocurrency mining.

President Vladimir Putin has ordered the government to create legislation governing the status of bitcoin, other cryptocurrencies, mining, and initial coin offerings, as well as defining everything that relates to digital money, by July.

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