• 6 hours Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 10 hours 14 Million People Will Lose Unemployment Benefits On December 31st
  • 2 days Why 12 Million American Millionaires Isn’t Good News
  • 3 days Big Oil Is Paying The Price For Investing In Renewables
  • 4 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 5 days Did Amazon Just Democratize Prescription Drugs?
  • 7 days The Private Space Race Just Got Very Real
  • 8 days Short Sellers Are Willing Big In This Turbulent Market
  • 9 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 10 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 11 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 12 days Black Friday Could Be Retailers’ Only Hope
  • 13 days Why You Should Not Dump Your Stay At Home Stocks Just Yet
  • 14 days The Real Reason Why Uber And Lyft Stocks Have Soared Nearly 50%
  • 16 days Bitcoin Heads Towards $16,000 And No One’s Cashing In
  • 17 days Elon Musk’s $250 Tesla Tequila Is Already Sold Out
  • 18 days Will The San Francisco Wealth Tax Spark An Exodus Of The Rich?
  • 19 days The Fin-Tech IPO Of The Century Just Got Crushed
  • 20 days UK Bookies Report Largest-Ever Political Bet Ahead Of Election Results
  • 21 days Better Safe Than Sorry: 5 Alternative Investment Plays
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Putin to challenge China in the Bitcoin race

China, the world leader in Bitcoin mining, may have some competition as the Kremlin enters the race, even creating its own its own cryptocurrency wallet.

Russia has a complicated history with Bitcoin. The debate to ban the cryptocurrency has swayed back and forth for the past several years, even threatening extremely harsh prison sentences, but things have recently taken a more supportive turn.

The push began in early 2016 when the Bank of Russia began evaluating the applications of blockchain technology in the financial sector. The Bank of Russia noted in a press release: “[T]he Central Bank established the Working Group on the analysis of advanced technologies and innovations in the financial market. Among the priority issues – the study of distributed ledger technologies (eg: blockchain), as well as new developments in mobile [technology], payment [industry] and other areas.”

Later in 2016, the Bank of Russia announced that it would begin testing Ethereum-based blockchain technology dubbed “Masterchain.” The prototype was used as a ‘networking tool’ with the purpose of enabling ‘prompt confirmation of data actuality.’ This test has since grown into an alliance between Russian banks similar to the Western Enterprise Ethereum Alliance which consists of heavyweights such as JPMorgan (NYSE:JPM), Intel (NASDAQ:INTC), and Microsoft (NASDAQ:MSFT).

Then, in July 2017, the push to join the global cryptocurrency ranks escalated. In a resounding endorsement for the coin’s blockchain technology, Russian President Vladimir Putin met with Vitalik Buterin, developer of Ethereum, at the St. Petersburg Economic Forum. Putin reportedly viewed the technology as a promising tool to assist Russia in diversifying its economy beyond oil and gas. According to a statement on the Kremlin’s website, Putin said: “The digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business models.”

This meeting sparked rumors that Russia is beginning to develop its very own cryptocurrency which was verified only a month later with the announcement that a Putin ally is building a $100-million Bitcoin mining operation.

Dmitry Marinichev, a trusted ally of President Vladimir Putin, has embarked on developing a large-scale mining operation through his company, Russia Miner Company, a joint venture, between Marinichev, the Party for Growth and the developers of the Waves Platform blockchain. The company intends to launch an Initial Coin Offering (ICO), accepting payment both in Bitcoin and Ethereum, in order to raise the $100-million to fund the endeavor.

The ICO will use Russian Miner Coins (RMC) and will entitle investors to 18 percent of the revenue generated from the company’s mining equipment.

In order to minimize the costs of the operation, the mining equipment will use semiconductor chipsand the computers will be placed in the homes of private citizens in order to take advantage of Russia’s extremely low electricity rates due to the country’s 20 GW power capacity surplus.  Marinichev noted that, with this environment, “Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future.”

With China’s share of the global market at 60 percent, Russia has a long way to go to achieve dominance in the sector, but a lofty 30 percent share would surpass every other country on the planet, including the United States.

Russia’s blockchain ambitions don’t stop there, however. In Marichinev’s joint venture with Waves, the group hopes to create a blockchain platform which will act as a pre-ICO verification, ensuring that offerings are safe for prospective buyers to invest in.

The future of Bitcoin in Russia is being determined – regulation is still being formed and the movement is still growing. But what we’re seeing is that, even in the highest levels of government, cryptocurrencies and blockchain technology are gaining acceptance.

In a clear sign that Russia is ready to become a leader in the emerging technology, a scientific institution has even successfully tested a platform which could theoretically withstand “quantum hacking,” or a hack from a quantum computer.

The incredible advances which Russia has made on the blockchain front will assuredly position the country ahead of the pack as the race progresses. Russia’s early entry into cryptocurrencies and blockchain tech could very will give it the same advantages which benefited the West with the invention of the internet.

By Michael Kern via Cryptoinsider.com

Back to homepage

Leave a comment

Leave a comment