Despite regulations from the government, report says that regional authorities in Russia are planning to attract European mining firms and investors by making available cheap electricity and developed infrastructure as incentives.
With this motivation, 150 cryptocurrency firms in the metro area are ready to take the advantage.
Moscow’s Cheap Energy is an advantage!
Chairman of the Moscow’s Construction and Energy Commission, Igor Kohaniy, was quoted by bitcoin.com as saying, “Electricity is cheaper here. European miners are ready to relocate to Russia.
“The regional infrastructure is well developed. Miners can either buy electric power from the public network, or install their own gas-turbine generators.”
Is Moscow Becoming Mining Tourist Centre?
With the plan to take the biggest move in the crptocurency world, is Moscow planning to become the largest cryptocurrency destination for tourists?
Deputy head of the city’s Economy and Investment Committee Vladimir Zhuk says that, “Crypto businesses and the Bitcoin community supported the initiative. According to the Russian Cryptocurrency and Blockchain Association, the capital city has the highest potential to lure “mining tourists”, Bitsmedia reported. The conclusion came from a nationwide study that assessed electricity rates, power reserves, logistical accessibility and telecom infrastructure in Russia’s regions are superb. Moscow Oblast (the adjacent district) placed second, followed by Saint Petersburg.
Who would benefit from the mining farm?
It is believed that the project is meant for cryptocurrency enthusiasts and bitcoin lovers around the globe, “Investors do not come empty-handed. They are building mining farms and local entrepreneurs will also benefit. The energy costs are lower here – why not play the trump card”, said. He also stated that attracting crypto-tourists is a smart policy and suggested that authorities should advertise what the region has to offer. “We have Russian miners operating here and they can confirm – this is a good place to run a business like that”, Zhuk added.
What’s the take of President Putin on cryptocurrency?
Regulations are already on ground to control the digital currencies, and law is being drafted aimed at imposing restrictions on mining farms, payments and token sales. President Putin has set a deadline for the finance ministry and the central bank to submit their framework proposal for the new regulatory regime. The new regulatory law is expected to finalize by the end of December 2017 and implemented by the summer of 2018.
Bitcoin.com says doing business, especially Bitcoin-related, takes a lot of optimism, willingness to embrace risk, and some survival skills. And in Russia, it takes Russians to win any such war.
Bitferry is a company run by Russians with years of experience in the harsh, often freezing cold, business climate of their homeland. It launched its first mining operations in May 2017 with two farms in the Moscow area.
Its hardware-savvy team recently announced a plan to build one of the largest mining platforms in Europe. They claim Russia’s severe weather conditions actually benefit mining, allowing for energy-efficient cooling solutions. A price of less than 5 cents per kWh of electricity should also keep the costs down.
Who is funding it?
The backbone of the project Bitferry isn’t depending on any Bitcoin Dolphins, rather targeting smaller investors and offers in return to set them up with a portfolio of different miners. The feature opens the door to maximizing profits in a sustainable way and investors are not tied to a single mining project or a coin.
Bitferry’s coin offering started with pre-sales in November 2017 at discounted prices. Investors can still buy tokens if they want to be part of building “one of the biggest industrial cryptocurrency mining farms”.
The success of the mining farm will see other lovers and cryptocurrency players around the world jump in to expand the acceptability of the most valuable currency in the history of mankind.