$50 Million Bitcoin Mining Farm Opens in Armenia

$50 Million Bitcoin Mining Farm Opens in Armenia

Mining

A new cryptocurrency mining facility opened in Armenia on Oct. 18. The $50 million farm will extract bitcoin and ethereum using 3,000 machines, according to local media reports. Around 120,000 more miners are to be added in the months to come.

Also read: Marks Jewelers Now Accepts Bitcoin Cash For Payments

Multi Group and Omnia Establish Landmark Armenian Mining Facility

The mining project, spearheaded by Armenian real estate investment company Multi Group Concern and Malta-registered Omnia Tech International Company, was officially launched in the Armenian capital of Yerevan on Thursday. The country’s Prime Minister Nikol Pashinyan, businessmen and entrepreneurs from China, South Korea and the United Arab Emirates attended the ceremony, Arka News Agency reported.

$50 Million Bitcoin Mining Farm Opened in ArmeniaGagik Tsarukyan, an Armenian businessman and politician who is also founder and head of Multi Group, said the company spent $50 million creating the facility, including the installation of industrial level cooling systems. The farm’s first floor is designed for an information technology business center that runs around the clock, he explained.

According to an earlier statement by Multi Group chief executive Sedrak Arustamyan, the farm will be operated by Omnia Tech, a mining entity that offers lifetime contracts and daily payouts. Omnia Tech has said to be in partnership with Genesis Mining, a leading cryptocurrency hashpower supplier.

“We will also help Omnia Tech with the establishment of the Financial Technology Park and the data exchange center in Armenia,” Arustamyan said in April. Robert Velghe, Omnia Tech founder, indicated at the time that the two companies were planning to invest more than $2 billion in mining projects in Armenia. “We intend to create here a blockchain-based center for the development of new information projects, which will turn Armenia into a high-tech platform,” he said.

 Global Cryptocurrency Mining Operations Rise

$50 Million Bitcoin Mining Farm Opened in ArmeniaArmenia is aiming to create its own Silicon Valley by establishing a free economic zone that will host a state-of-the-art technology center, officials have said. The new mining facility, the country’s first, comes at a time when a number of countries are implementing and expanding blockchain technologies. Georgia, Armenia’s neighbor, set up its first bitcoin mining farm two years ago.

In August, Russian company Kriptoyunivers announced it had transformed a former fertilizer laboratory into a cryptocurrency mining operation. The center, which supports the mining of bitcoin and litecoin, was built over 4,000 square meters of land in the town of Kirshi near St. Petersburg, with an investment of 500 million rubles ($7.4 million). Although Moscow has cracked the whip on illegal attempts at cryptocurrency mining, Russia is still the third largest cryptocurrency producer in the world after China and the United States.

What do you think about the new mining facility in Armenia? Let us know in the comments section below.


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Russian Draft Bill Lacks Core Crypto Terms After Recent Edits

Russian deputies have removed the definition of crypto mining from a draft bill on digital currency regulation ahead of its next reading in the State Duma, major local news agency Interfax reports Oct. 19. Consequently, the new law will not clarify tax issues for miners.

The chairman of the Duma Committee on Financial Markets Anatoly Aksakov briefly explained the reason behind the deputies’ decision to eliminate a core crypto term from the bill:

“Earlier we had some thoughts on Bitcoins, on their integration into our economic system. But as we decided we don’t need them, these ambiguous Bitcoins, therefore we don’t need mining as well.”

If the law were to define crypto mining, it consequently would also need to define cryptocurrencies, Aksakov told Interfax. He further added that it would be “senseless” to include mining in the regulation proposed by the government. He said mining should be brought under tax watchdog jurisdiction if needed.

It is not immediately clear whether definitions for tokens and Initial Coin Offerings (ICO), and rules for crypto exchanges — which were included in the initial draft — remain in the current version. The present draft law will proceed to the second of three readings in the Duma.

The bill “On Digital Financial Assets” was first introduced in January by the Russian Ministry of Finance. In March, a group of deputies headed by Aksakov proposed a modified version that established know your customer (KYC) regulations for customer identity verification on crypto exchanges, echoing current requirements in the U.S. A draft of the bill was approved by the State Duma in first of three hearings in May.

However, before the second hearing scheduled for the Duma’s autumn session, a definition of “cryptocurrency” was removed from bill. Mining then was defined as the “release of tokens to attract investment in capital.”

In September, a lobby group from the Russian Union of Industrialists and Entrepreneurs (RSPP) started working on an alternative crypto regulation bill. According to RSPP vice-president Elina Sidorenko, the new bill will divide digital assets in three groups and help eliminate contradictions in the state bill that she calls “unfinished and fragmented.”

Aksakov spoke to Interfax at Finnopolis 2018 — a fintech event that was held in the Russian city of Sochi this week. During the conference, state officials discussed crypto and its role in the country’s economy.

The head of the Russian central bank, Elvira Nabiullina, compared interest in crypto to a “fever” that was “fortunately” over. Herman Gref, CEO of Russia’s largest bank, Sberbank, predicted that governments will not abandon centralized control of monetary policy and currencies to allow cryptocurrencies to flourish within the next ten years.

Sia Network Releases Hard Fork Code to Block Crypto Mining Giants

The sia blockchain network has released the formal code for an imminent hard fork that will block miners using hardware produced by Bitmain and other major manufacturers.

David Vorick, founder and CEO of Nebulous – the for-profit firm behind the $239 million distributed storage protocol – announced the release of code version 1.3.6 in sia’s official channel on Discord Tuesday, reminding miners that the hard fork will be activated on Oct. 31.

“All users who want to stay on the Sia network need to upgrade prior to the hard fork date. All major exchanges will be participating in the hard fork,” Vorick said.

As CoinDesk reported, after a year of debate, the sia blockchain community decided to enact a hard fork early in October. After activation, the new code will ensure only application-specific integrated circuit (ASIC) processors designed by Nebulous subsidiary Obelisk can be used to mine the network for block rewards.

As a result, other ASIC miners, including those made by industry giants like Bitmain and Innosilicon, will become blocked from the sia blockchain at the end of this month.

Bitmain launched its AntMiner A3 product in January specifically targeting the network’s token siacoin, as well as adding support for siacoin on its mining pool, AntPool.

In his Tuesday post, Vorick said the new code also included major updates to resist Sybil attacks – which create fake identities to exploit a network – and “other methods that could be used to manipulate a host unfairly into the top ranks.”

For miners who do not wish to align with the hard fork, sia’s network developers are also offering an alternative upgrade, version 1.3.5. Released alongside version 1.3.6, the alternative also fixes detected security issues, but omits the hard fork portion of the code.

“The only difference between v1.3.5 and v1.3.6 is the activation of the hardfork, meaning that users can safely upgrade to v1.3.5,” Vorick wrote.

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Source: Coindesk

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