Putin's consultant's startup challenges China on bitcoins

in news •  7 years ago  (edited)

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A collection of $ 100 million in cryptocurrency to challenge China on an unprecedented ground: the bitcoins. It is the goal of Russian Miner Coin (Rmc), a Russian company that sees among its founders Vladimir Putin's "Internet Advisor" Dmitry Marinichev. According to Bloomberg, the company is launching an Ico (initial coin offering, similar to an Ipo for digital currencies) with the intention of pushing local entrepreneurs into a direct confrontation with the Chinese counterpart. In the course of the operation, tokens will be sold, equity equivalent instruments, with the right to 18% of the revenues earned by the company's mining activity (transaction verification).

The projects are ambitious. According to Marinichev, Russia has the potential to "achieve a market share of 30% in mining on global cryptovalues". In the event of a successful harvest, the expected $ 100 million will be invested for $ 10 million in processor development and $ 90 million in the equipment needed for "extraction" that requires enormous computing power.

Ace in the sleeve: low cost energy
Mining can only be performed on specific types of computers, with chips that can minimize power consumption. Among the biggest players on the market is the Chinese Bitmain Technologies, which proclaims "the world leader in bitcoin hardware production" and is a reference point for the national miners community. One of its rivals is the Russian Bitfury Group, which produces similar equipment with factories in Georgia and Iceland.
One of the axes of the sleeve cited by Marichinev could be that of energy costs. The cost of electricity travels today to the equivalent of 1.3 cents a kilowatt hour, below the standards of the same Chinese market. Rmc's intention is to place Bitfury computers in private homes to take advantage of low costs and undermine Bitmain's primacy. Today, after the "split" of the coin, Bitcoin is in full rally and sold at $ 3,400 a unit. Market capitalization amounts to $ 56 billion, or about 46% of the total turnover.

Source: http://mobile.ilsole24ore.com/solemobile/main/art/tecnologie/2017-08-08/-startup-consulente-putin-sfida-cina-bitcoin-171826.shtml?uuid=AEGmOTAC

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Thank You!

I shared a news that I think was very important!

Nice!

I think a more spread mining would be better for btc and not a few big players controlling the mining Business

They are choosing a very interesting time in bitcoin history to do this. If they start with segwit standards they better hope it succeeds.

Great news for Crypto!