A large scale cryptocurrency mining farm was found in Russia. The authorities described the facilities of an abandoned factory used in the cryptocurrency mining in the city of Orenburg, 1500 kilometers of Moscow.
The numbers, described in the Bitcoin News report, is impressive. They used powerful processors, and the mining cost for electricity was 60 million rubles, which is equivalent to more than $ 1 million. The miners never paid the electricity bill and if they were found by the cops they can be sentenced to 10 years in prison.
It was definitely the abnormal usage of electricity that took the authorities to the scene. Taking into account that the average cost of 1 bitcoin mining is $ 4,675, according to a recent Elite Fixtures survey, the Russians have managed to mine more than 200 bitcoins.
The Orenburg farm is illegal – and could lead its operators to jail for 10 years – but facilities similar to it, though authorized to operate, are well viewed by the government. The cryptocurrency mining in Russia has proved attractive, primarily due to lower energy costs, even in Brazil and the United States.
Articles suggest that amateur mining is not very profitable, unlike that done on an industrial scale. As a result, several regions of Russia have declared themselves able to host large facilities. Authorities in the Leningrad region have invited miners to occupy a nuclear power plant that will be shut down in a few years. A few weeks back we had seen that Russian scientists were allegedly found mining cryptocurrencies at Nuclear weapons Lab facility.
Russia is ready to support entrepreneurs willing to invest in mining. Houses and businesses consume less than 60% of the electricity the country is able to produce. Recently, a local entrepreneur acquired two power stations, especially for mining bitcoins. The report also says Foreign investors are also welcome.