Not far from a time when Russia prepares to legally accept Initial Coin Offerings, a company owned in part by Russian Pres Vladimir Putin’s web ombudsman Dmitry Marinichev apparently plans on raising as much as $100 million via an ICO, in order to aid Russian entrepreneurs challenge China’s bitcoin mining domination.
Ethereum and Bitcoin Sought in Russian ICO
Russian Miner Coin (RMC) is looking to issue tokens in exchange for Bitcoin, Ethereum and potentially other cryptocurrencies in order to use the funds to build a bitcoin mining infrastructure in Russia. RMC owners will have the rights to 18% of the revenue generated by RMC’s mining rigs, according to reports from Bloomberg.
Dmitry Marinichev plans on utilising Russia own design semiconductor chips to be used in satellites, to reduce power consumption in cryptocurrency mining machinations. Putin’s online advisor even ventured that Russia has the potential to be the dominant player in the cryptocurrency mining world, stating:
“Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future.”
Most interestingly Russia has over 20 gigawatts of unused power capacity, which makes public use electricity prices as low as £1 (80 kopeks) per KWH less than in China. This surplus gives Russia an edge over China in the biggest resource drain and consideration in Bitcoin mining enterprises
The resource intensive process that produces new tokens and generates new transactions to the blockchain is the make, break or profiteer factor for BTC. Currently, miners get 12.5 BTC (about £30,000) payment for finding a block. Also, the mining operation owner are awarded fees that users pay in transactions as an incentive.
Russia to join Billion-Dollar ICO
Recent ICOs have raised millions of dollars within just hours, many with not more than a good idea and a nicely scribed white paper to wave about. This ICO from RMC may be a swift method for Russia to instantly gain the required multiple millions to tackle China’s bitcoin mining dominance and gain a lead in the market
Putin’s co-owned company is one of many to join this current eras ICO craze. CCN recently stated that in the first two thirds of 2017, ICOs garnered over $1.2 billion. Eastern European neighbours Estonia recently announced it may seek to produce its own national cryptocurrency under the name Estcoin which would be our first national cryptocurrency