Russia faces China in Bitcoin mining

An adviser to Russian President Vladimir Putin is trying to raise up to $ 100 million in an initial ICO offer to create the “Rusian Miner Coin” currency. The attempted funding for the MRC was revealed this week by Dmitry Marinichev, who serves as Internet mediator to Putin’s office. Investors will use Ethereum or Bitcoin to buy RMC tokens. These tokens will be entitled to 18 percent of the revenue earned from the company’s mining equipment, according to a presentation posted on its website.

Today’s Bitcoin mining requires special chip-based computers with minimized power consumption. Bitmain Technologies Ltd. of China is one of the main producers of this type of equipment, which also manages Antpool, a processing group that combines individual miners from China and other countries. Its rival Bitfury Group, founded by Valery Vavilov of Latvia, produces equipment for cryptocurrency mining and has large centers in Georgia and Iceland.

Russia has 20 gigawatts of excess power, with electricity prices to the consumer as low as 80 kopeks (1.3 cents) per kilowatt hour, lower than in China, RMC said in the filing. Apparently, the Russians plan to challenge Bitmain and defeat China as far as Bitcoin mining is concerned, although it must be borne in mind that, for each passing year, the mining difficulty doubles and out of a total of 21 million Of Bitcoins, 16 million and a half have already been mined.

Russia has the potential to achieve up to 30 percent participation in global mining in the future, “Marinichev said, adding that $ 10 million of ICO’s revenues could be spent on infrastructure development.

The presentation details how the sale will take place in two parts: a pre-sale that will last until August 25. From there, a second stage sale will take place between August 28 and September 2. The ICO is the first planned launch of a new service jointly created by the Board for Growth, a Russian political partner, and the developers of the Waves Blockchain. Russia thus joins cryptography and the future where more than $ 1.6 billion has been invested to date through ICOs.

With the regulations on cryptography in the country still unclear, and without existing legislation, the participation of government sources in an ICO that is also sponsored by the Russian State can obtain the backing of businesses and speculators both inside and outside the country of Vladimir Putin, although in this case, without Bitcoin losing strength, a priori, then remember that the reward for investors in CMR would be translated into Bitcoins.