Each time in which Russia prepares to legalize Initial Coin Offerings (ICOs), a company co-owned simply by Russian President Vladimir Putin’s internet ombudsman Dmitry Marinichev reportedly plans on raising just as much as $100 million through an ICO, to help Russian business owners challenge China’s Bitcoin exploration supremacy.
The company, Russian Miner Coin (RMC) is going to concern tokens in exchange for Bitcoin and Ethereum, to make use of the funds to build mining facilities in Russia. RMC small holders will have the privileges to 18% of the income generated by the company’s exploration equipment, according to Bloomberg.
Per Dmitry Marinichev, RMC plans on using semiconductor potato chips designed in Russia, made to be used in satellites, to reduce power consumptions in crypto currency mining operations. Putin’s internet advisor even added that Russia has the potential to become a dominant player in the cryptocurrency mining industry, saying:
“Russia has the potential to achieve up to 30 percent talk about in global cryptocurrency exploration in the future. ”
According to Bloomberg, Russia has twenty gigawatts of excess power capacity, which makes consumer electrical power prices as low as 1. a few cents (80 kopeks) per kilowatt hour, reportedly lower than in China. This excess would give Russia an edge more than China, as one of the biggest expenses associated with Bitcoin mining is power consumption.
Bitcoin mining is usually an energy intensive process that generates new tokens and adds new transactions towards the blockchain. Currently, miners obtain a 12. 5 BTC (about $54, 000) reward intended for discovering a block. Also, the miners are granted fees users paid in transactions as an incentive.
Numerous ICOs have recently elevated millions of dollars within a few hours, frequently with more than a good idea and a well-written whitepaper to show. RMC’s ICO might be a way intended for Russia to instantly protect the $100 million to tackle China’s Bitcoin exploration supremacy and take over the marketplace – if it hits the required amount, that is.
Putin’s internet ombudsman’s company may be the latest to join this year’s ICO mania. As reported by CCN, in the first half of 2017, ICOs raised over $1. 2 billion. Recently, Estonia also announced it could concern its own national digital foreign currency, Estcoin, in the world’s first government ICO.