Russian Miner Coin Wants To Challenge China for Bitcoin Mining Supremacy

Russian Miner Coin — a company co-owned by one of Vladimir Putin’s advisers  plans to generate $100 million worth of cryptocurrency. The company wants to start a large scale bitcoin mining operation in Russia. They want to challenge China for bitcoin mining supremacy and dethrone the Asian country as the world’s leader in bitcoin mining. 

Also read: New Reality Docu-Series About Bitcoin to Explore Regulation

Building a Mining Infrastructure in Russia

Russian Miner Coin is creating a new digital asset and having a token sale. They are Russian Miner Coin To Challenge China for Bitcoin Mining Supremacypositioning to generate revenue for building a mining infrastructure in Russia. The initial coin offering (ICO) for these “RMC” tokens will provide holders with rights to 18% of the earnings generated by all mining equipment purchased with investment funds.

A Fortune magazine article elaborated, saying, “Russian Miner Coin is holding a so-called initial coin offering, where investors will use units of ethereum or bitcoin to buy new RMC tokens. These new tokens will have rights to 18 percent of the revenue earned with the company’s mining equipment, according to a presentation posted on its website.”

The Russians are going to use semiconductor chips, which were designed for satellites, to power the equipment and minimize costs. Putin’s internet ombudsman, Dmitry Marinichev, provided this information in a recent news conference. He suggested Russia has a lot of potential to grow in the field of cryptocurrency mining. He said,

Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future

Russia Joins ICO Craze; Mining Electrical Costs in Russia

It appears that Russia is taking advantage of the current craze for ICO’s. Therefore, creating a token that represents mining value seems ingenious for bootstrapping a project.

Many similar ICO’s have been able to generate millions of dollars within minutes and hours, Russia Miner Coin To Challenge China for Bitcoin Mining Supremacyand much more over the course of days. It is likely Russia is using this method to instantly gain the revenue to start moving in on China’s hold on bitcoin mining.

Currently, mining bitcoin is a time consuming and expensive process, which generally requires mining pools to conduct the work. Hydroelectrical power is cheap in many parts of China, and this provides fertile ground for ripe bitcoin mining operations. However, mining in Russia may also prove comparatively inexpensive. The country has 20 gigawatts of excess power, according to the Fortune Magazine article. This is allegedly less costly than China’s power output. The website clarified:

Russia has 20 gigawatts of excess power capacity, with consumer electricity prices as low as 80 kopeks (1.3 cents) per kilowatt hour, which is less than in China, RMC said in the presentation.

No telling which superpower will win in the end, though. China still has the first mover advantage in terms of crypto-mining expertise and experience.

Do you believe Russia will be able to surpass China in bitcoin mining? How do you see cryptocurrency evolving as we move into the future? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

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  • Isualk Tnagniew

    Would have been a wonder if russia, the nation of internet fraud and hacking wouldnt generate as much Crypto as possible to be the fastest and best mining nation plus have more money for military or the planned Mega gas pipeline to provide 40% of europes needs an underbeat the energyprices in europe to stop the growth of renewable energy

    • The Chinese will always be ahead in the mining, because they produce asic. Russia does not produce asic and video cards. In Russia there is so little production that even food is imported from abroad.

  • Leon Kouchica

    I don’t think Russia will be able to surpass China in bitcoin mining

    • LOL, they don’t have to in order to benefit massively.

  • vegas

    Vlad is waaaaay too late to this game. Should’ve started back in 2013 when China did. But at least he’s looking into it which is more than anyone can say for Trump admin. They only want to regulate crypto and claim taxes on early adopters/miners who risked it all with btc scams/uncertainty, ‘doomed to fail’ as it was from every nay-sayer across the globe. They’ll be licking their wounds when USD become worthless shit paper.

  • Carl Latchford

    $100m is nothing these days

  • ffd jhky

    They better should mine NavCoin with Raspberry Pi, because is Pos and earn 5% per year nearly freely…