- A Russian company has decided to turn an aluminum plant into a crypto mining facility.
- The facility plans to take on China’s supremacy in bitcoin mining.
- If bitcoin manages to trade around $9,160, the Russian company estimates profits of up to $99 million per month.
The cryptocurrency industry is having an exciting month as governments and private entities make announcements that contribute to the growth of the field. First, it was reported that billionaire Peter Thiel along with other investors poured $50 million into a crypto mining startup. The company plans to build renewable bitcoin mining farms in Texas in 2020.
China escalated the conversation after President Xi Jianping publicly stated that the country should “take the leading position in the emerging field of blockchain.” South Korea followed suit as the Korea Internet Security Agency announced that it will fund blockchain-related projects next year to the tune of $9 million.
Just recently, Russia hopped on the blockchain bandwagon after its internet ombudsman decided to convert an aluminum plant into a bitcoin mining farm. The Russian official has lofty ambitions as he plans to take on China’s dominance in bitcoin mining.
China’s Supremacy in Bitcoin Mining is Unquestionable
Mining the number one cryptocurrency requires an exorbitant amount of energy. According to research, it takes 300 KWH of electricity to power each bitcoin transaction. To put that in perspective, that amount of energy can power a window type air conditioner eight hours a day for about a month. Thus, those who mine bitcoin can stay profitable if they run operations in countries where electricity comes cheap.
That’s why it’s no surprise that China controls 70% of crypto mining capacity. The country is also home to farms that control 60% of bitcoin’s hash rate. These mining rigs are located in the Sichuan mountains. That’s where hydroelectric power is responsible for making electricity costs one of the cheapest in…