Bitcoin is an interesting contraption which is both loved and hated all over the world. There is no better example of this love-hate relationship than in the case of the former Soviet Union. With so many conflicting news pieces coming out of that region alone, plenty of drama abounds. Transnistria, a self-proclaimed state bordering Ukraine, is still banking big on Bitcoin. In fact, it hopes to attract more mining operations in the near future. If all goes according to plan, it may even receive some financial backing from Russian investors.
Transnistria is Integral to Bitcoin’s Future
Ever since Russia first showed any interest in Bitcoin, people knew it wouldn’t be a smooth ride to the top whatsoever. In fact, the country is home to as many proponents as opponents when it comes to cryptocurrency and even blockchain technology. This rather volatile powder keg will erupt at some point, although it may also herald a prosperous era for cryptocurrency as a whole. Transnistria is one of those places near Russia which people need to start paying attention to, as it will certainly help shake things up quite a bit.
There is a growing interest in this new form of money across all of Russia and eastern Europe. That is a bit disconcerting to local regulators and authorities, as they want to avoid any financial mishaps taking place due to leniency on cryptocurrencies. The Russian monetary authority has not been favorable toward Bitcoin, but there is no official ban on cryptocurrency either. A legal gray area has advantages and drawbacks, yet it shows there is room for growth in the region moving forward.
Perhaps the most tantalizing aspect of Bitcoin is its mining process. By using electricity and powerful computer hardware, people are able to receive a portion of all the new Bitcoins being discovered on the network. Do keep in mind the number of “new” bitcoins is fairly limited and there are thousands of miners around the world competing for the same reward. Despite this allure, Russia isn’t home to many official mining operations, even though they apparently represent 3.5% of all global mining, according to Lenta.
The Baltic states especially are looking for new ways to generate revenue without introducing new taxes. The creation of Bitcoin mining operations is one area actively being explored as we speak. It is a very positive development, all things considered, especially in places such as Transnistria where conditions are favorable. Having access to cheap electricity is an obvious advantage, and it shows the region is one of the better places in which to mine crypto. Even the local government seems to support this idea and has come up with a bold plan in this regard.
Russian Export founder Igor Chaika claims Transnistria’s administration hopes to create cryptocurrency mining farms. More specifically, it wants to do so with the help of Russian investors. With great internet penetration rates, cheap electricity, and a local government willing to keep an open mind, Transnistria will certainly become a major player in the future of Bitcoin mining. Moreover, there seemingly are legislative amendments “to allow for setting up cryptocurrency production operations”. It’s an interesting scenario, to say the least.
Transnistria’s cheap electricity is a direct result of using two hydroelectric power plants. Both of these plants can generate 48,000 kilowatts, which should be more than sufficient to power even the more powerful cryptocurrency mining operations. Right now, one kilowatt hour of electricity costs around US$0.03 or slightly less, depending on the exchange rate. It certainly makes for an appealing solution to set up more Bitcoin mining farms in the near future. Transnistria may very well become the region to keep an eye on moving forward.