Russia is moving quickly to gain first-mover advantage in government adoption of the blockchain with the announcement of an Ethereum-based token called Russian Miner Coin (RMC).
The coin will be mined on Russia's extensive over-capacity in electricity generation which, itself, is a massive comparative advantage. Remember, I told you two weeks ago that Russia owns a significant portion of the U.S. base electricity load via its control over the Uranium enrichment production and supply chain.
If they are producing electricity at $0.012 per KWhr then there is a huge arbitrage opportunity for RMC to generate insane profit. Now think in terms of Russia's central bank buying RMC's as a reserve asset further diversifying out of the dollar.
From the Bloomberg article:
“Russian Miner Coin is holding a so-called initial coin offering, where investors will use units of Ethereum or bitcoin to buy new RMC tokens. These new tokens will have rights to 18 percent of the revenue earned with the company’s mining equipment, according to a presentation posted on its website.”
18% of Revenue... not profit, top-line revenue. That's enormous.
This will be a $100 million ICO.
Note how quickly Russia is moving on this front. In June Putin met with Ethereum designer Vitalik Buterin, in August two major Ethereum-based projects are announced in Russia.
This is a huge move to counter U.S. sanctions as well. It creates a new token that can easily move cross-border to settle trade that the U.S. can't track directly. If you here anything at all about ring-signatures and Monero-technology in the context of Russia, you know this is how they are planning to get around sanctions.
Build a new crypto. Incentivize its distribution to the Russian people and banks by making it an investible asset that pays an initial return and then create an another alternative payment system to get around U.S. money laundering rules for foreign banks scared to do business with Russia due to the sanctions.
Sources:
Russia Launches $100 Million Bitcoin-Mining Operation
http://russia-insider.com/en/politics/russia-launches-100-million-bitcoin-mining-operation/ri20641
Russia Embraces Ethereum to Professionalize Banking System
https://tomluongo.me/2017/08/02/russia-embraces-ethereum-to-professionalize-banking-system/
I wonder how Russia mining bitcoin will effect the mining difficulty?
They have 20 megawatts of spare capacity to leverage at $0.012 per KWhr. The Russians could control up to 30% of the bitcoin mining market if this works. That's insane.
Putin is playing for keeps boys.
Wow! Sometimes I want to move to Russia, 1/40th my effective electric rate. Hopefully this RMC can be structured to reduce the size of .gov size and corruption.
I think Masterchain is the technology to do that, Tinman. We're looking at them putting on the blockchain all the little things where most of people's functional interaction with government is and, effectively, eradicating the pettiness of humans.
And that is one of the main sources of everyday corruption and sloth that rebuilds a society from the ground up.
Now structuring the RMC to perform higher level functions to both create cheaper cross-border networks and build/diversify bank reserves is another task that needs to be done to protect Russia from further hybrid attack.
And does anyone seriously think John McInsane has any clue about any of this? Our leadership is beyond sad.
If you really are thinking about moving to Russia, you might be interested in this post from a couple of months ago
https://steemit.com/land/@eyeofthestorm/free-land-just-relocate-to-russia
It's for real, not a scam, although I don't know anyone personally who has gone through the application process, so I couldn't comment on what that's like, but it is open to non-Russians.
Putin is no fool, that's for sure. I wouldn't mind having a few RMCs. The US dollar's days as a reserve currency would certainly seem to be numbered at this point.
think 2021 and beyond. That's when the system will truly break down. It'll take that long for various big shifts in capital and politics to occur.
RMC...curious, ty
This post has received a 0.52 % upvote from @booster thanks to: @goldgoatsnguns.