Bitcoin

Battle Of The Bitcoin Mining Crown, Russia Heats Things Up

The race is on to become the next leader in bitcoin mining. As eCommerce continues to see an increase, with online fraud multiplying as a result, many are looking for more secure ways to make payments. The cryptocurrency is one of the larger proponents of this.

Russian president Vladimir Putin’s co-owned company, Russian Miner Coin (RMC), has officially announced news that it has thrown its hat into the bitcoin mining ring and is challenging China’s efforts. Internet advisors to Vladimir Putin are currently pushing the company to raise $100 million of the bitcoin virtual currency.

During an initial bitcoin offering, RMC will use ethereum or bitcoin to purchase RMC tokens, which will give 18 percent of revenue-earned rights to the company. Vladimir Putin’s internet ombudsman, Dmitry Marinichev, commented at a Moscow news conference on Russian efforts to become a leader in bitcoin: “Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future,” said Marinichev.

With this move, RMC is looking to minimize power consumption in computers for virtual currency mining by using Russian-designed semiconductor chips in satellites. Currently, bitcoin mining uses computers with a very small power consumption. Both China and Russia have built out these machines to help mine large amounts of bitcoin. In RMC’s presentation this week, it shared that the country has an extra 20 gigawatts of power and lower consumer electricity prices than China.

Using RMC tokens to raise money for digital assets via ICOs allows for investors to only make money if the business is profitable. While some companies are utilizing bitcoins to shift an ICO over a traditional IPO, the U.S. Securities and Exchange Commission warned against this, as there will need to be more cybersecurity around this avenue.

While the race to become the top country in bitcoin mining wages on, it’s certain that Russia and China are serious about cryptocurrency, while the U.S. has yet to dip its toes into the water.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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