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Mongolian treasure? Mongolia emerges as a hub for mining cryptocurrency

Mongolia has become one of the few nations where cryptocurrency extraction is profitable thanks to the cold temperatures and economic power.

Since the accident in Bitcoin, many miners, particularly in China, have abandoned operations because the cost of equipment and electricity has made it commercially unprofitable.

But Mongolia has seen an increase in mining due to its favorable equipment climate: the capital Ulaanbaatar shares the rank of the coldest capital in the world with Moscow in Russia, Ottawa in Canada and Astana of Kazakhstan.

Energy costs are also among the lowest in the world and mining – the process of generating new cryptocurrency units by solving complex enigmas – requires huge amounts of electricity.

The Tokyo e-wallet company, Ginco, operates about 600 mining computers in Ulan Bator and plans to add another 1,000 units this year.

Yuma Furubayashi, CEO of Ginco Mongol, told the Nikkei Asian Review: "The business environment is getting stiffer, but we can still make a profit".

The trend is aided by the government, which is keen to nurture an industry that can operate when pungent weather slows mining, agriculture and tourism.

The crash of Bitcoin hit China hard, with reports of miners selling equipment by the kilo after going broke.

Earlier this month, Coin Rivet spoke with an important blockchain consultant who said that the mining sector will continue to be profitable on a large scale.

Christian Richards, director of business development for blockchain and mining operations for the Canadian Fiber Center, states that the peak in the price of cryptocurrency in December 2017 led to "normal and retail crypto-miners ghetto in their basements and mining garden sheds ".

But the "biggest drop in the cryptocurrency price means so many that it is not cheap now".

Richards is in contact with "large-scale miners" and says it will remain profitable on a large scale and will continue to be profitable until 2019.

"Everything indicates the mining industry on a large scale," he says. "Essentially the smaller Bitcoin miners are coming out, but it's not heading for a spiral of death." The biggest mining operations are expanding. "

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