Fertilizer Lab Turned into Largest Crypto Farm in Russia
August 22, 2018 4:54 pm
A Russian company has recently converted a fertilizer laboratory into what appears to be Russia’s largest cryptocurrency mining center.
The operation is called Kriptoyunivers center is focused towards the mining of Bitcoin and Litecoin. The center is spread on an area of 4,000 square meters in Kirshi, St.Petersburg. The estimated investment cost of this project is 500 million rubles ($7.4 million).
Alexei Korolyov, Co-founder, Kriptoyunivers revealed in an interview with the Japan Times that the project is geared towards being an all-inclusive solution which will offer services beyond mining.
The claim of Kriptoyunivers being the largest crypto farm in the country should be taken with a grain of salt. This is due to the fact the majority of mining operations that take place in Russia happen in secrecy. Hence, their output and exact income cannot be determined by traditional means.
Even though the Russian government has been strict in curbing illegal cryptocurrency mining operations, Russia is the third largest producer of cryptocurrencies in the world, falling behind China and the United States.
The market needs more big players in the market to ensure the security of the transactions and the cryptocurrency itself.
Given the design of the Bitcoin network, any entity who controls more than 51% of the mining power can make changes to the ledger, making it vulnerable to hacks. This news comes as a relief as Bitmain in China is close to gaining majority control over the Bitcoin network.
The Russian government had recently introduced a bill in the parliament which allowed the production or mining of cryptocurrencies while outlawing the trading. The bill is still pending approval though Kriptoyunivers’s project is in line with the government’s regulations.
It would be interesting to see how Kriptoyunivers plans to sell its mined crypto given the restrictions placed by the government.