Russian Factory As a Bitcoin Mine?

4 min reading

According to the reports of the local news portal, RBC, a company belonging to the spokesperson of the Russian Internet, Dmitry Marinichev, will change the, now closed, Rusala factory focused on aluminum production into a Bitcoin mine. Will this deal be lucrative? As a Russian mining company called RMC believes - yes!

 

Speculation on BTC extraction

If information provided to the media is true, then Marinichev himself expects the new place to help his venture extract up to 20% of BTC. Other experts were of a more critical opinion. Opinion on the subject of mining BTC was presented, among others, by the president of the Russian Association of Cryptocurrency and Blockchain (RAKIB). As to Yuri Pripachkin claims, BTC mining is still beneficial to users, but all depends on the costs connected with electricity. He argued that electricity prices are pretty high in Moscow and the only idea that might prove to be more profitable is placing excavators in a different location. Apart from that, he called into question Marinichev's forecast, in which Marinichev ensured that one pool could get 20% of Bitcoin mining.

"For the Russian pool, it is possible to focus on 5-7% of the whole amount, the indicator itself is dependent on access to appropriate electricity prices."

- says the CEO of RAKIB.

 

Marinichev's concept

It is also worth taking interest in the history of the factory belonging to the Rusal company, which ranks second in the world in terms of primary aluminum production. What is interesting is the fact that in 2018 this factory was closed because of a sanction imposed on it by the United States and because of which the factory lost the possibility to supply its products to the USA. A spokesperson for the Russian Internet revealed that his company will simply rent the premises. He also said that RMC is not the only local tenant, but he did not specify who exactly and for what purpose rents premises belonging to the factory located in northwestern Russia.

 

It should be added that Marinichev has a slightly broader concept than just mining BTC. His company is interested in creating a digital hub whose tasks will include selling computing power abroad.

"Now the factory is unprofitable for Rusal, the electricity supplied to it is barely utilized, and people living in the single-industry town near the plant have nowhere to work Our idea consists of converting the factory and selling its computer power as a service, that is to say, offering IT services."

- adds a spokesperson for the Russian Internet.

 

This type of service can become pretty interesting for people who would like to get involved in mining cryptocurrencies, developing neural networks or artificial intelligence.

 

The RMC company formed by Marinichev belongs to one of the biggest ICOs carried out in Russia. Originally, this startup was going to raise $ 100 million. In mid-2017 it raised $ 43 million, which is a good result. In 2017 RMC created a mining farm and two cryptocurrency mines as well: one for Bitcoin mining (BTC) and the other for Ether (ETH).

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