BitFury Group Ltd. Tips the Scales with Million-Dollar Fortune for Two Investors
The cryptocurrency community is filled with stories of consumers that have managed to make a fortune with the industry. Someone in China runs his mining through hydropower for their FinTech investments. Another investor in Russia keeps his mining endeavors in a factor outside of Moscow. However, Valery Vavilov, an evangelist in Soviet Russia, and Valery Nebesny, an engineer, have been making a major profit off of kits that are the size of sea containers.
Their kits are part of a startup, which Vavilov started in Amsterdam. Nebesny didn’t join the product until later, when he created an energy-saving chip that helped sell over 100 BlockBoxes. These boxes can get about 15 tokens each month, which has amounted to about $450 million in cash in the last year. In the recent innovations that Vavilov has made, they plan to at least double that amount in 2018, which is due to his idea to mobilize their data centers for greater results.
In his Ukrainian interview, Vavilov refers to the two major problems that come into play while mining for more Bitcoins – the lack of known support from the government and the need for cheap electricity. One of the most prominent countries for mining, China, has recently started restricting mining in their country, due to the heavy impact it has on their overall grid. However, Estonia has begun to look into making their own cryptocurrency platform.
The BlockBoxes from Vavilov are big enough to house over 100,000 chips, though they send millions of tokens a year over that to third parties, which cost about $5 each. In a personal estimate, Vavilov said that their technology is responsible for about 15% of the Bitcoins in the world, even accounting for Iceland, Norway, Canada, and Georgia.
Much of the need for Bitcoins comes from the major increase in value for Bitcoins, jumping from $1,000 to $20,000 last year. Much of the attention comes from the ability to use blockchain technology to record each transaction publicly to avoid fraud. Blockchain’s potential is what truly interests Vavilov, since he sees it as an industry that will soon exceed trillions.
He said, “Imagine—some $300 billion of crypto wealth has already made its way into the hands of totally different, non-establishment people. Most of these people, like me, aren’t interested in private jets or yachts, they truly want to change the world. Given how much wealth is in their hands now, I expect to see a lot of good new things in the next few years—in finance, health care, education—everywhere.”
The software that Vavilov’s company uses includes Exonum to “anchor” databases. It also includes Crystal to unveil anonymous transactions and Lighting Network to manage payment systems. Some sources call BitFury the “Intel of the cryptocurrency world,” for the way that Vavilov is building up the hardware and software for Bitcoin mining. In fact, their startup’s progress has quadrupled the size of their business in the last three years.
While Vavilov and Nebesny control over half of the company in their shares, they haven’t been public about how much value is actually in that portion. Additionally, he’s preserved other personal details, like his home city and his share of Bitcoins, for the sake of personal security. However, what the public can see is how much the BitFury team has mined, which is over 1 million tokens right now.
To show other investors how to make their profits in the crypto market, Vavilov frequently speaks at crypto and investment events, like the recent one in the Caribbean. He also dedicated some personal time to pro bono work for an early supporter of BitFury. Despite his worldly travel, he still has the determination to mine Bitcoin effectively for as long as the tokens hold a value over $3,000.
Bitcoin has actually taken some hits since the end of last year, decreasing in value by about two-thirds in the last six months alone. Vavilov remains hopeful, saying that this dip is just a temporary, and he hopes to drive more ambitious companies to the industry.
At this time, Vavilov’s BitFury company presently has locations in about 16 different countries.