The latest report from Japanese media reported ‘ Mongolia’s cheap electricity’ has captured the growing cryptocurrency mining interest from the Japanese bitcoin miners. Mongolia, a location between China to the south and Russia to the north is featured with ‘the blend of cheap electricity and cold weather’.
Cheap electricity attracts Japanese cryptocurrency miners to Mongolia
Cheap electricity and cold weather are the two major aspects every bitcoin mining firm loves. So far, Malta, Switzerland, China, and other countries are in mainstream media and very recently Mongolia is also turning up as the ‘cryptocurrency mining hub’.
The mining firms which are already situated in this location are yielding high profits in cryptocurrency. Eventually, Ginco, e-wallet Company based in Tokyo is the latest name to operating within the capital city of Mongolia, Ulaanbaatar. Launched in October 2018, Ginco firm has two ventures within the location. Presently the firm has 600 mining computers and all set to expand 1000 units soon this year.
The cryptocurrency market for mining firms has performed extensively well during 2017 but the sudden crash in 2018 has effected major firms to collapse and stop their operations. For instance, GMO Internet Inc has incurred the loss of $321 million in late 2018 and gave up on cryptocurrency mining. This isn’t something that discourages Ginco Tokyo based wallet firm, conversely, despite the plummeting cryptocurrency market, Yuma Furubayashi, CEO of Ginco Mongol is confident of generating profit out of it. He says
“The business environment is increasingly harsh, but we can still produce a profit,”
Betting on the future potential of Bitcoin
The report adds that the electricity rates available at Mongolia are quite cheaper than the rates in Japan as well as China. Eventually, Mongolia is now seen as the ‘mining hub’ beside US and Sweden where miners can actually have the stake of profit despite the market crash. Notably, iTool is the successful running business in Mongolia. Having said that, ‘Mongolian company’ is set to leverage the ‘resources available’ and create opportunities for new business entities as well.
Bitcoin which was trading at the peak of $19000 in late 2017 has fallen down to the figure of $4000 in late 2018. No doubt the currency is still holding the first spot in terms of ranking but struggling to grip the value of $4000 this week. Although the graph of bitcoin has remained negative for quite long now, the manager of Tokyo-based consultancy LayerX, Hiroyuki Maruno urged that ‘bitcoin holds value’. He added that;
Many big cryptocurrency mining companies have shut down their operations. But “bitcoin, which has become synonymous with virtual currency, will always hold value,