The involvement of Russia in the cryptocurrency industry has always been questionable. For the most part, it would appear the country and its officials do not like Bitcoin or altcoins. On the other hand, one of the country’s biggest mining farms now aims to mine 20% of the daily Bitcoin rewards in the years to come.
The Shift in Bitcoin Mining
For the past few years, most people assumed the majority of Bitcoin mining operations originated from China. Although there is a fair bit of evidence to back up those claims, the Chinese government has also made it clear that would not be the case for much longer. New electricity tariffs were introduced, and some of the country’s larger mining operations have been forced to relocate. Finding a new place to create a profitable Bitcoin mining operation is not that easy. Several factors need to be adhered to, including cheap and abundant electricity.
To many people’s surprise, it appears Russia might be a new region to keep an eye on in this regard. One of the bigger mining companies in the country is currently owned by Russia’s internet ombudsman. Moreover, this individual looks to open a new facility in Russia which will be capable of mining a lot more BTC. So much even that he expects to mine 20% of the daily minted Bitcoins in the very near future. That is a rather interesting gamble, primarily because Bitcoin will undergo a block reward halving in less than a year from today.
Russian Mining Company ICO
The company spearheading this new venture goes by the name of Russian Mining Company, or RMC. It currently runs a Bitcoin mining facility in Karelia, which was facilitated by conducting a successful initial coin offering in 2017. During that sale, the company raised as much as $43 million. Given how this company is backed by one of Russia’s primary government officials – and one who doesn’t see eye-to-eye with most of his colleagues – the overall interest in this project was to be expected.
Finding a new location to set up the bigger Bitcoin mining facility will be a crucial challenge. Albeit the company aims to find a stable climate, seismic stability, and support from the regional government, there are only a handful of places where this can be achieved. One also has to keep the electricity tariffs in mind, albeit the difference can be overcome without too many problems. As such, it appears Russian Mining Company will expand to either Irkutsk or Nadvoitsy. The decision has not been finalized at this point, but more information should be made public in the coming weeks.
Bitcoin Mining Remains Hot
Despite multiple reports condemning the wasteful mining of cryptocurrencies in recent years, entrepreneurs and investors continue to focus their attention on Bitcoin. The world’s leading cryptocurrency can be mined with dedicated ASIC hardware, which is easily accessible even in larger quantities. Even with the price of BTC fluctuating significantly, there has been a notable increase in Bitcoin mining power throughout 2019. Once RMC’s new facility opens its doors, that trend is very likely to continue for the foreseeable future.