A former soviet union fertilizer lab has been converted to a cryptocurrency mining farm. The fertilizer lab was converted to cryptocurrency mining farm by Kriptoyunivers, a Russian crypto startup.
Fertilizer Lab, To Cryptocurrency Mining Firm
On the 20th of August 2018, a new cryptocurrency mining farm was opened in Russia. The cryptocurrency mining farm is named Kriptoyunivers center located on a 44,000-sq-ft land in Kirishi; a town situated 118 kilometers Southeast of St. Petersburg.
The facility used for the new cryptocurrency mining farm is a fertilizer lab of the former soviet union. The lab has been abandoned for over 20 years before it was purchased and transformed to a cryptocurrency mining farm.
The cryptocurrency mining farm is tagged the largest in the whole of Russia, with an investment of 500 million Rubles ($7.4 million, €6.5 million).
Setting up a mining firm is capital and power intensive. It is estimated that cryptocurrency mining consumes about 0.5% of the power consumed globally. This has made cryptocurrency mining farms to be at loggerhead with their domiciled community over power consumption.
Crypto mining has been banned in some regions and stamped with moratorium over high consumption of power, such as Salamanca and Pittsburgh in the United States.
Alexei Korolyov, a co-founder of the Kriptoyunivers center, stated that “This is the largest and so far the only farm in Russia that offers the ‘full cycle’ — not just producing cryptocurrency but also offering services to those who do the mining.”
Cryptocurrency in Russia
Cryptocurrency is permitted in Russia, unlike China that has placed a ban on cryptocurrency in the country. However, the industry is still yet to be regulated, and plans are underway to monitor it.
Furthermore, even though cryptocurrencies aren’t banned in Russia, there is a ban placed on the exchange of cryptocurrency to the national currency, Rubble, which puts cryptocurrency mining firm at a disadvantage in comparison to other countries.
Peer-to-peer transactions have been said to have gained ground in Russia compared to other nations of the world despite instructions from financial authorities. The increasing adoption of cryptocurrency in the country has also made its top target for cyber attackers and scammers alongside the United States and China.