Bitcoin Mining Hotels in Vogue among Russian Crypto Miners By Cryptovest


Bitcoin Mining Hotels in Vogue among Russian Crypto Miners

The cryptocurrency market has entered a distinct bearish phase, with Bitcoin’s price slumping from nearly $20,000 to as low as $8,300. Nevertheless, Russia’s army of crypto miners is growing steadily, as is the number of so-called mining hotels. Since the beginning of 2018, mining hotels in the country have multiplied by six times, according to research conducted by Youla, a Russian platform for free advertisements.

Home-based miners find it hard to store the noisy, energy-hungry equipment in their flats and seek alternative and cost-effective ways to run their business. Offices are typically too expensive and not always available for individuals, so mining hotels have emerged as a cheap and convenient alternative.

Igor Zartdinov, CEO of Enigma and co-founder of cryptocurrency fund ICG, explains that flats, houses, or garages are not suitable for mining farms because the equipment is too large, the noise is too loud, and electricity consumption is very high. Moreover, it requires specific temperature conditions and cooling systems.

“The premise should be dry and well-ventilated to prevent the equipment from overheating, with stable, fire-proof power supply system,” he added.

The average cost of “accommodation” in such a hotel decreased from 3,700 rubles (about $65) to 2,550 rubles ($47) per month as supply growth outpaced demand in March. Saint-Petersburg has the largest number of advertisements offering mining hotel services at an average cost $52-$70 per month. Youla found the cheapest hotels to be in Ivanovo (about $18) and the most expensive ones in Tumen (nearly $90).

Mining hotel costs do not include electricity consumption, which may substantially increase the bill. Based on the average electricity rate, the cost of mining one bitcoin in Russia amounts to $4,600, according to Elite Fixtures research. It means that mining is still profitable in Russia although the situation may change if parliament approves the so-called Digital Assets Law, which may introduce taxation for miners.

This article appeared first on Cryptovest

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Related Posts

Add Comment