The director of the Russian RMC mining company, Dmitry Marichinev, wants to expand Bitcoin mining in Russia. He wants to control 20% of mining activity with the help of an IT hub in Karelia.
Marichinev took control of the Nadvoitsky Aluminum Plant (NAZ), which was closed last year in April. The factory is owned by Rusal, whose director was sanctioned by US authorities because of ties to the Kremlin.
According to Marinichev, the RMC is interested in creating a digital hub based in NAZ, which will sell computing power abroad.
“Now the Rusal-owned plant is not profitable, the electricity supplied is not practically used. People living in the city with a single industry near the plant do not have jobs. Our idea is to redesign the installation and to sell its computing power as a service, that is to say, to provide IT services. ”,
said Marinichev.
Dmitry Marichinev has partnered with the UK cryptocurrency exchange Cryptonex. He said he intends to control 20% of the world’s bitcoin mining activity.
An ambitious plan
This is a very ambitious plan considering the current situation of the mining industry.
The president of the Russian Association for Crypto-Economy and Blockchain (RACIB), Yuri Pripachkin, believes that Dmitry Marichinev has little chance to do so.
“In Moscow, electricity prices are quite high and just because of this, the location of mining equipment in another place may prove to be more profitable”,
explained Pripachkin.
“There are already a lot of players around the world mining this cryptocurrency. For a Russian mining pool, it is realistic to focus on 5-7% of the total volume. Even so, the indicator is highly dependent on access to appropriate electricity prices ”,
he said.
However, Pripachkin emphasized that cryptocurrency mining is still beneficial to all people involved in the process.
A block of bitcoin is mined every ten minutes, which means you can mine 4320 blocks a month.
The current block reward is 12.5 BTC, and at the current price of Bitcoin, the total revenue from Bitcoin mining is over $ 500 million per month.
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