Russia To Give An Electric Boost To Bitcoin Mining

Russian Cryptocurrency miners are taking leases of big companies operating power plants for diverting the excess energy production to mining of cryptocurrencies. This move is believed to bring widespread relief to the cryptocurrency miners who often become handicapped under the pressure of towering electricity bills which swipe away significant profit portion from Bitcoin mining

Timofey Ra, a cryptocurrency mining farm owner stated that electricity bill payment consumes 30% of the overall Bitcoin mining expenses. This has caused a large of number of cryptocurrency miners to openly disclose their intention of starting electrical grids for exclusive usage. Gazprom and EuroSibEnergo, two of the biggest energy companies of Russia are propelling this developmental drive.

An EuroSibEnergo representative recently released a public statement revealing that cryptocurrency miners shall be aided by more than seventy manufacturing facilities having ready-made state-of-art infrastructural build and quick access to substations and electrical grids. These energy providers are engaging in regular discussions with a large number of virtual currency miners who are seeking out ways to capitalize this cheap electricity advantage.

Lowering energy rates will also boost up the competitiveness of Russian technology at par with the Chinese organisations. Presently, China generates almost half of cumulative Bitcoin mining power on a global scale. Such mammoth operational scale is slowly shifting China to the epicentre of all cryptocurrency activities. Cheap electricity generated from humongous store of renewable energy is helping the Chinese miners in establishing a digital mining enterprise. Chinese electricity is either financed by state or delivered via hydroelectricity which gives them a competitive advantage over peers in the global spectrum.

Also Read: Russia All Set To Challenge China In Bitcoin Mining Sector

Bloomberg recently published a report stating 1.3 cents/kilowatt hour rate in Russia which also has excess power capacity of 20 gigawatts might give them an edge in terms of cost efficient power consumption over China. If reports are to be believed then Russia is all set to legalize the cryptocurrency within 2018.

Officials are also working tirelessly to bring the ICO form under their regulatory wing. Russian Miner Coin (RMC), co-owned by Dmitry Marinichev, the internet ombudsman of President Vladimir Putin is all set to raise funds worth $100 million through ICO for challenging China’s Bitcoin mining supremacy.

Also Read: China Bans ICO, Cryptocurrency Prices Drops.

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