Since Beijing announced their plans of kicking Bitcoin out of China, also by banning the Bitcoin mining, the companies operating in PRC had to start looking for a different place for their businesses. And they have found one.
Miners evacuating from China
Due to low energy prices and lack of legal regulations for Bitcoin mining China became the mining empire. Many mining companies located their businesses in this country, tempted by the favorable conditions China offered. Unfortunately, this miners’ dream-come-true is probably coming to an end as China’s government has already signalized their will to introduce a new law that would completely ban Bitcoin mining. These decisions put many entrepreneurs in a difficult position since efficient Bitcoin mining requires two things: cheap energy and low temperature. So far, the Republic of China was the country that offered both. Right now miners are forced to seek another place. And right now Russia is the leader.
First big investments are confirmed
It has been recently reported by Kommersant that Russian businessman, Aleksey Kolesnik has decided on buying two Russian power stations, that will be used only for the purpose of mining. One of the power plants is based in Perm region, and another is located in Udmurtia. They will be used to build Bitcoin data center and mining operations as well. This is the very first such big venture in this area. It’s been also reported that the whole investment cost Kolesnik around $3 mln.
The Russian government has already started working on official regulations for cryptocurrencies and cryptocurrency mining. What we know for sure is that Russia is definitely in favor of broad usage of Bitcoin and crypto-businesses, since rumor has it that it might the way for this Eastern empire to bypass Western sanctions.
Stay tuned with news from cryptocurrency world!!
Last modified: January 20, 2018
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