Bitcoin has been earned – using its computer, to help process inexplicably “blockchain” or digital transaction records that reduce currency
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Four thousand kilometers from Moscow, near the banks of the Angara River, a Russian firm operating a huge data center powered by cheap local hydroelectric power is expected to double the price of bitcoin and its power generation this year. Telling about the plan.
Bitriver hosts the device at its flagship 100-MW data center in the city of Bratsk, along with other smaller sites for cryptocurrency overseas miners from the United States, Europe and Japan who want to tap the region’s inexpensive energy. .
The company may already be responsible for 2% of global bitcoin mining, estimates chief executive Igor Runets, but coming up with accurate figures in the sector was difficult.
The price of bitcoin has risen nearly 300% since the beginning of November and topped $ 50,000 for the first time last month, as Tesla Inc. bought $ 1.5 billion worth of bitcoin and other large companies and investment houses and small traders. Chased into the property.
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Bitcoin is earned – or by using your computer, which helps to process “undercheck” blockchain or digital transaction records, which underline the currency.
This requires huge computing capacity, and a lot of power, and is mostly done in cooler climates of Iceland, Canada, North China and Russia with large machines in aircraft hangar-shaped warehouses, where the heat generated is dispersed. Costs less.
Rewards have never been higher for those who verify transactions in the Bitcoin-making process.
“The current demand from our customers is over 700 megawatts and a gigawatt is coming,” Runset said. “We will definitely continue to build data processing centers. In 2021, we plan to reach 300 megawatts of power.”
Another 100-MW center is already under construction in the neighboring Burutia region, Runset said.
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Large deals with foreign companies, such as last December, which saw 14 lorries loaded with equipment, arrive in Bratsk, could boost the local economy and are a sign that BitRiver has become a global player, he said. The company said in the video.
Bitcoin volatility
Russia last year granted legal status to cryptocurrencies, but banned them from being used as a means of payment.
“The current law in Russia does not impede us anyway,” said Runcet. “It allows us to host computing equipment of foreign customers on Russian territory with settlements for it in dollars or rubles.”
This arrangement reduces the financial impact of bitcoin price on BitRiver.
“When bitcoin falls or rises, my profit, my revenue remains almost unchanged,” said Runset. “This financial stability is very valuable in a volatile market.”
More lenient legislation would give Russian players more and more investment, Rennets added, which could help BitXaver improve its 2.5x year-on-year revenue growth in 2020. He declined to disclose further financial statements.
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One of the primary concerns imposed on bitcoin miners is their carbon footprint. Runset said Bitriver uses more than 90% of green power because it builds data centers in areas with electric spirals and renewable energy sources.
According to Alexander Bryjannikov, executive director of the Russian Association of Cryptocurrencies, Artificial Intelligence and Blockchain, Russia accounts for about 7% of the world’s bitcoin mining, a figure that does not include gray-market players and those illegally connecting to the power grid .
Kazakhstan accounts for a similar figure, while China is the market leader.
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