The top two requirements for crypto mining is cold weather and cheap electricity, and Mongolia offers both of them. It is of no surprise that it has become one of the most lucrative crypto mining destinations.
Japanese miners are one of the first to capitalize on this. Tokyo-based e-wallet company Ginco is amongsts the pioneers of the move. They have set up 2 mining firms back in October when the hash rates were low.
CEO of Ginco Mongol, Yuma Furubayashi said:
“The business environment is increasingly harsh, but we can still produce a profit.”
Yuma is still optimistic about his mining business, In an interview earlier this week he said:
“The margin in this area is still large, and I think that various business will be born in the future. For example, our company has already undertaken a repair business of mining machines. Only two companies have domestic official repair licenses for Bitmain, the largest mining machine manufacturer. In addition, we can create a new business model with various axes, such as business centered on consensus algorithm for approving block chains, business related to cloud mining centered on users participating in mining.”
Notably, Mongolia is one of the few countries where mining is still profitable. Chinese miners have significantly profited from some particular geo-economic factors in some regions of the country – principally in Sechuan – which allowed miners to take account of unusable excesses of renewable energy due to profuse government expenditure in past years.
In other news, Mongolia’s capital city of Ulaanbaatar has unveiled plans to launch a pilot program that will see the city’s Nalaikh district deploy a blockchain-based payment system developed by stablecoin startup Terra. The pilot program will launch within the next six months and offer two main features: peer-to-peer (P2P) payments for instant transfers among users of different banks, and mobile payments.