[BREAKING NEWS]: Putin getting ready to kick Bitmain's ass

[neurotypical]

https://www.bloomberg.com/news/articles/2017-08-08/putin-s-aide-seeks-100-million-to-rival-china-in-bitcoin-mining

   Today’s bitcoin mining requires special computers based on chips with minimized power consumption. China’s Bitmain Technologies Ltd. is one of the leading producers of such equipment and also runs Antpool, a processing pool that combines individual miners from China and other countries. Rival Bitfury Group, founded by Valery Vavilov, a Russian-speaking native of Latvia, produces equipment for mining virtual currencies and runs large-scale centers in Georgia and Iceland.

    Russia has 20 gigawatts of excess power capacity, with consumer electricity prices as low as 80 kopeks (1.3 cents) per kilowatt hour, which is less than in China, RMC said in the presentation. The company initially plans to locate mining computers based on Bitfury chips in individual Russian households to challenge Bitmain by using Russia’s lower power prices.

Now this is getting interesting. And when Russia joins the mining ecosystem, you know that the US is not simply going to sit back and relax. They will jump in too eventually.
The Chinese mining monopoly has it's days countered. It's time to fire Jihan.

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[Minecache]

This is indeed [BREAKING NEWS].

Shit's about to get real.

[Xavofat]

You know that a lot of hash rate directed at Chinese mining pools is not going to be from China, right?

Regardless, what's the difference between a Chinese mining monopoly and a Russian mining monopoly except for whether you have a personal vendetta against the Chinese ones?

This is indeed [BREAKING NEWS].

It really isn't.

[HabBear]

Now this is getting interesting. And when Russia joins the mining ecosystem, you know that the US is not simply going to sit back and relax. They will jump in too eventually.
The Chinese mining monopoly has it's days countered. It's time to fire Jihan.

Or the US will declare prosecutorial jurisdiction over Russia and seize every Russian home computer under the the explanation of: suspected financial involvement with Russian spy organization....because anything Russian is considered "covert" and having "malintent" and "egregious to the US" and "something the US would never engage in."

It would be nice for multiple countries to provide ideal and competitive conditions for bitcoin mining...it shouldn't be monopolized in China because they can produce the cheapest cost of energy.

Regardless, what's the difference between a Chinese mining monopoly and a Russian mining monopoly except for whether you have a personal vendetta against the Chinese ones?

It's not a monopoly when two strong entities exist at the same time...it's called duopoly...and when they're not working together it's called competition. And competition is good for all of us.

[MysticOne]

Well this is obviously a very interesting development. I am a bit surprised by this news.

[Kaller]

I hope Putin kicks BTC-e founder's ass and gives back my money.
Seriously, I lost a lot of money I need to get that back hope something happens.

[Youghoor]

All of this kind of news are always good for Bitcoin, it is amazing guys but bitcoin is being adopted in a lot of countries, also it is growing superfast i think this is the best moment to get into the boat and buy bitcoin, it has a very good potential. In my opinion it is going to reach 5k at the end of the year, so let the good notices come and the bitcoin price will go up as usual.
glad to hear such a notice from russia.

guys what do you think that will happen with bitcoin in SouthAmerica? Most of the countries dont wanna it to be legalized.
 

[drlukacs]

I hope Putin kicks BTC-e founder's ass and gives back my money.
Seriously, I lost a lot of money I need to get that back hope something happens.

Not only you loss a lot of money in BTC-e exchange, most miner in my country also holding our coin in this exchange, but we just can waiting BTC-e can refund in September as their announce or not. This time really new deathline for the price of Bitcoin increasing or crash

[thejaytiesto]

Now this is getting interesting. And when Russia joins the mining ecosystem, you know that the US is not simply going to sit back and relax. They will jump in too eventually.
The Chinese mining monopoly has it's days countered. It's time to fire Jihan.

Or the US will declare prosecutorial jurisdiction over Russia and seize every Russian home computer under the the explanation of: suspected financial involvement with Russian spy organization....because anything Russian is considered "covert" and having "malintent" and "egregious to the US" and "something the US would never engage in."

It would be nice for multiple countries to provide ideal and competitive conditions for bitcoin mining...it shouldn't be monopolized in China because they can produce the cheapest cost of energy.

Regardless, what's the difference between a Chinese mining monopoly and a Russian mining monopoly except for whether you have a personal vendetta against the Chinese ones?

It's not a monopoly when two strong entities exist at the same time...it's called duopoly...and when they're not working together it's called competition. And competition is good for all of us.

Lol how's the US going to seize inside Russian citizen homes? they can't do shit if Putin decides he wants to mine BTC. Putin has nukes, US know where the limits are.
You mean seizing Russian citizens living in US that are mining BTC?

If BTC survives long enough, then big state actors will either attack it or will compete to dominate it, and when one begins then the rest will follow, this in principle is good because different big actors will be competing for hashrate, it only legitimizes Bitcoin even more as something important.

Just wait until AMD, Nvidia and Intel enter the mining game, the cheap chinese stuff may not cut it in the future, but they will always have the cheap electricity advantage so im not sure how they will go around that.

[BitcoinerXX]

I hope Putin kicks BTC-e founder's ass and gives back my money.
Seriously, I lost a lot of money I need to get that back hope something happens.

Not only you loss a lot of money in BTC-e exchange, most miner in my country also holding our coin in this exchange, but we just can waiting BTC-e can refund in September as their announce or not. This time really new deathline for the price of Bitcoin increasing or crash

at some point i think nations will have to start their own bitcoin mining operations to help secure the network against bad actors (like bitmain) to help protect their citizen's interests. similarly, any large corporation who has a stake in bitcoin in one form or another may also want to protect it with their own mining operations.

[lonelygrimm]

oh shiiiit, this happening, this is really hapening, where is the medical , i can't hold the hype right now.

All big player will comes and join the game  
Let see how's the game will be played  

[lucifochrome]

Something is about to go down. Once russia establish their mining corp. US will follow so as other big countries. This is going to be a domino effect and will be fun!

[iamTom123]

I am actually wary of the Chinese monopolize on mining and am hoping that other countries would also participate in this endeavor so there would be spread of ownership and influence. In a situation where there seems to be a monopoly, the control can be one-sided.

Good thing that Russia is getting to be interested with the Bitcoin mining business. But we are all waiting for USA to really be a big participant on this thing so that there can really be a balance of influence.

[gentlemand]

Anything that removes China is a good thing. I didn't know Russian power was that cheap, however some Chinese power is borderline free as they mine next to plants with capacity going free.

[Xavofat]

Regardless, what's the difference between a Chinese mining monopoly and a Russian mining monopoly except for whether you have a personal vendetta against the Chinese ones?

It's not a monopoly when two strong entities exist at the same time...it's called duopoly...and when they're not working together it's called competition. And competition is good for all of us.

OK, well I hate to break it to you, but several groups other than BITMAIN are already major groups.  So I suppose you should be questioning the OP's point about the "Chinese mining monopoly".

My view is that any group controlling too large an amount of the hashrate is bad, whether that's BITMAIN or the Russian government.  The difference, however, is that BITMAIN only has temporary power over their amount of hashrate, because if they did something really malicious the miners could just move away from their pools.

I suppose all this stuff with mining pools is just an inherent flaw in Bitcoin anyway so we'll have to sit back and watch how it pans out.

Anything that removes China is a good thing.

By which you mean anything which competes with BITMAIN, rather than things that "remove China".

[gentlemand]

By which you mean anything which competes with BITMAIN, rather than things that "remove China".

Nope. There are plenty of fine people mining there, but they're all under the boot of the Chinese authorities. That much mining possibly controllable by one regime is potentially harmful.

[sylance]

Wow, just wow.  This could be huge.  It'll be interesting to see how the US approaches this.  On one side I can see the US attempting to stop Russia from monopolizing this currency and competing against them... but on the other the US doesn't want any other currency to become popular.  Every foreign currency that goes into BTC is currency that's not holding the US dollar for reserve.

Also, jeez... 1.3 cents per KwH??  In the US, land of prosperity and dreams, I pay 12 cents per KwH.   

[ParRus]

This is the price because - the standard of living... you live better - pay more

[odolvlobo]

The company initially plans to locate mining computers ... in individual Russian households ...

That part of the plan will fail. The failure of 21.co proved that it won't work.

[Gotottack]

Yey more bitcoin miners. (insert sarcasm here)
To be honest, bitcoin mining is wasteful and it totally just doesn't do anything else but produce, well, bitcoins. Just think about it, a miner just mines bitcoins and nothing else really. It just tries to create digital gold which is totally useless in practical use but we value it based on how much we want to pay for it (supply and demand). No, russia has so much excess power, so why not just sell it to industries that will totally make use of it in better things. Though don't get me wrong, I love bitcoins. I really believe this is the future, but not how it is acquired.