Huge Russian mining center in Ethiopia - page 2.

NotATether

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Quote from: logfiles on January 07, 2024, 05:51:07 AM

Ethiopia probably have cheap electricity as well because it's situated in the Nile basin. I did some research, and they have quite a number of hydroelectric power plants - https://www.gem.wiki/Category:Hydroelectric_power_plants_in_Ethiopia

in the article, they say

Quote

“100% of the data center’s electricity comes from renewable energy sources, specifically from the Grand Ethiopian Renaissance Dam, the largest hydropower project in Africa, with a capacity of 5.15 GW,”

That dam is not 100% built yet so it's only going to yield a fraction of the electricity that the article cited.

Let's hope they're not going to ursup all the residential electricity though, my neighborhood is farthest from the nearest power grid so we get more frequent outages.

FP91G

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Quote from: Learn Bitcoin on January 06, 2024, 10:20:37 PM

Quote from: FP91G on January 06, 2024, 06:42:21 AM

In Russia, huge amounts of electricity are sold to China at very cheap prices, and a Russian company is building a data center in Ethiopia, where the civil war recently ended but the situation there is very difficult. In this data center, you can install 120,000 ASICs of 3.3 Kilowatt each, which will be a big investment.

If electricity is too cheap in Russia, what could be another reason that Russian companies building mining centers outside? Building a company outside of your own country is kind of expensive. As you mentioned, the civil war ended recently and the situation is difficult as well. Still, that company decided to invest there. I see two possible reasons why they are investing there. One, they are just trying to help Ethiopia unconditionally and the government will help those companies who will invest in their country. Two, Possibly that company is trying to escape VAT tax. I have heard that it's tough to move your money out of Russia.

BitCluster is not a state company and the Russian state does not really support mining, although it does not greatly hinder mining from developing. Perhaps this business protection is why the company invests in different countries.
Cash or non-cash money is difficult to transfer to other countries, so cryptocurrencies are often used

Learn Bitcoin

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Quote from: logfiles on January 07, 2024, 05:51:07 AM

Another factor could be the political climate in Russia and maybe the uncertainty towards crypto adoption. Russia is the kind of country that wakes up and bans whatever they want.

This could be the main reason. This makes much more sense. I know some Russian friends who don't like to be there and want to move to another country. But they couldn't. One of the main reasons is, that they have to abandon their house and the money they have. They said that they won't be able to keep their money with them. I don't know why it's too difficult when we have cryptocurrency. Some people live in Russia, but they don't like to be there.

A company may want to avoid any kind of possible future problems like a Mining ban, crypto ban, or Bitcoin ban. But I guess they have to pay fees as well for investing outside of the country.

hugeblack

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The text of the news says Russia to build crypto mining hub, and it did not say that construction has already begun. Also, by reading the details, we find that a 120-megawatt (MW) data center in Ethiopia was mentioned, and data centers differ from mining centers.

In general, I went to the news link from bitcluster.ru^[1] and found that the construction is supposed to be completed in January 2024, so by the end of this month we should get pictures of the data center. So let's wait and confirm this news.

[1] https://bitcluster.ru/mass-media/from-the-arctic-to-africa.html

logfiles

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Quote from: FP91G on January 06, 2024, 06:42:21 AM

In Russia, huge amounts of electricity are sold to China at very cheap prices, and a Russian company is building a data center in Ethiopia, where the civil war recently ended but the situation there is very difficult. In this data center, you can install 120,000 ASICs of 3.3 Kilowatt each, which will be a big investment.

According to the article, the mining center will be located in the Capital City Addis Ababa, which I believe did not experience the civil war. Besides, Russia is also engaged in some sort of war that we don't know when it will end.

Quote from: Learn Bitcoin on January 06, 2024, 10:20:37 PM

If electricity is too cheap in Russia, what could be another reason that Russian companies building mining centers outside? Building a company outside of your own country is kind of expensive. As you mentioned, the civil war ended recently and the situation is difficult as well.

Ethiopia probably have cheap electricity as well because it's situated in the Nile basin. I did some research, and they have quite a number of hydroelectric power plants - https://www.gem.wiki/Category:Hydroelectric_power_plants_in_Ethiopia

in the article, they say

Quote

“100% of the data center’s electricity comes from renewable energy sources, specifically from the Grand Ethiopian Renaissance Dam, the largest hydropower project in Africa, with a capacity of 5.15 GW,”

Another factor could be the political climate in Russia and maybe the uncertainty towards crypto adoption. Russia is the kind of country that wakes up and bans whatever they want.

Learn Bitcoin

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Quote from: FP91G on January 06, 2024, 06:42:21 AM

In Russia, huge amounts of electricity are sold to China at very cheap prices, and a Russian company is building a data center in Ethiopia, where the civil war recently ended but the situation there is very difficult. In this data center, you can install 120,000 ASICs of 3.3 Kilowatt each, which will be a big investment.

If electricity is too cheap in Russia, what could be another reason that Russian companies building mining centers outside? Building a company outside of your own country is kind of expensive. As you mentioned, the civil war ended recently and the situation is difficult as well. Still, that company decided to invest there. I see two possible reasons why they are investing there. One, they are just trying to help Ethiopia unconditionally and the government will help those companies who will invest in their country. Two, Possibly that company is trying to escape VAT tax. I have heard that it's tough to move your money out of Russia.

FP91G

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Activity: 1610

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In Russia, huge amounts of electricity are sold to China at very cheap prices, and a Russian company is building a data center in Ethiopia, where the civil war recently ended but the situation there is very difficult. In this data center, you can install 120,000 ASICs of 3.3 Kilowatt each, which will be a big investment.

Learn Bitcoin

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Quote from: Bright Venus on January 05, 2024, 01:13:09 PM

What do you think about big companies making huge mining centers? And what about when those companies make it in other countries?

If they are licensed companies, there is nothing wrong with starting a business in a different country. There are too many factors that depend on such as electricity cost, manpower cost, and legality. Let's say mining is not allowed in my country, I can start a business in my neighbor country or another country if I want. If my company is licensed and I pay the taxes, there is nothing wrong.

Quote

I've just read something and this came to my mind. Because as we know, as more miners we have, less the payment we receive.

The mining difficulties have been increasing for years and it will grow further as more miners add to the network. Solo mining is not recommended for independent miners unless they have a bigger hash rate. It become impossible for a solo miner to find a block these days.

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What do you think about big companies making huge mining centers? And what about when those companies make it in other countries? How do you think this impact on those house-made mining structures, if does?

I've just read something and this came to my mind. Because as we know, as more miners we have, less the payment we receive.

Do you think it will become a problem in the future and will be impossible to a regular person to start mining?

https://www.rt.com/africa/589461-russia-crypto-mining-center-ethiopia/amp/

Topic: Huge Russian mining center in Ethiopia - page 2. (Read 568 times)