A mining farm will be built at a nuclear power plant

The region’s government is planning it in Leningrad region in Russia by $ 82 million
30 November 2017   1229

In the Leningrad region, the first applicants for the launch of a mining farm for the production of cryptocurrency in the territory of Leningrad NPP in Sosnovy Bor appeared. The head of the region Alexander Drozdenko made an idea for the production of Russian cryptocurrency in the territory of the Leningrad nuclear power plant. The first sites of power units, which are now being prepared for decommissioning, will not be released until the end of 2018.

Information about the developers of cryptocurrencies and innovative startups was not disclosed at the request of lawyers of both sides. But preliminary calculations were announced: investments in equipment of the site for 10 thousand square meters. m, according to calculations of regional officials, will amount to about $ 82 million, the project should pay back in 18-20 months.

The economic block of administration has already developed a variant of tax and legal regulation of the first residents of the technopark. A key condition for the efficiency of the new cluster will be the cost of electricity no more than $ 0.05 per kWh. The first operation at the LNPP-2 power unit are planned to start in December, and the power engineering will go to full capacity next year. Farm equipment can become a ready infrastructure for other projects related to finance, artificial intelligence and neural networks.

In the other countries, for example Canada, the government supports mining startups. It provides discounts on electricity for miners.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.