Russia to Enter in Bitcoin Mining

A Russian company having one of President Vladimir Putin’s internet adviser as its co-owner is planning to raise approximately $100 million worth cryptocurrency to establish a solid footing of the Russians in the digital currency frontier filled with Chinese Bitcoin miners.

The Russian Miner Coin is all set to hold an initial coin offering whereby investors can make use of their Bitcoin or Ethereum tokens to buy corresponding RMC tokens. According to the presentation details posted on the company’s website, the tokens will entitle its holders to 18% of its revenue earning rights cropping up from usage of the company’s mining equipment.

According to a news announcement in Moscow made by Dmitry Marinichev, the internet ombudsman of Vladimir Putin, the Russian designed semiconductor chips will be put to use in satellites for minimizing power consumption to a bare minimum in computers for the purpose of cryptocurrency mining.

Marinichev feels that Russia has the capacity of engulfing 30% of global cryptocurrency market in days to come. He wishes to plough back $10 million of ICO proceeds in the development of processors.

Start-ups are raising money for financing their digital assets through the ICO mechanism off late.  In contrast to traditional IPO providing buyers with equivalent number of shares, the startup’s ICO provide unique virtual tokens whose value is directly proportional to the company’s growth pattern.

Last month the U.S. Securities and Exchange Commission issued a warning in relation to cryptocurrencies signalling to use of ICO’s as securities thus opening the floodgate for greater regulation and scrutiny in the said sector.

Despite of continuous warnings from SEC, more than dozens of ICO’s has been announced. 

Bitcoin mining has undergone a lot of change off late with specialized chip based computer taking up the high end tasks thus reducing the power intake. Bitmain Technologies Ltd. Of China is the leading producer of similar equipment. It also runs Antpool which is a processing pool bringing together individual miners from across the globe. Its rival company Bitfury Group produces equipment which assists in mining virtual currencies and running mammoth sized centres in Iceland and Georgia. With strikingly low electric consumption price, Russia has an excess surplus of 20 gigawatts. Russia plans to make use of the same for building up a solid challenge against China’s Bitmain.

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