Mongolia a country known to have one of the lowest electricity cost in the world has found itself on the receiving end of crypto miners leaving countries with higher electricity cost such as Japan. With a cheap electricity cost and lenient laws, Mongolia has become a new favourite for crypto miners from Japan.
Increase in Need for Cheap Electricity
The extremely bearish crypto market has resulted in a low profit for crypto miners. Since electricity plays a major role in driving the cost of mining Cryptocurrencies up. A drastic reduction in the cost of electricity will surely see that the cost of mining drops. As a result of this, even with the reducing prices of cryptos, miners will still be able to make some profit for themselves while mining in Mongolia.
Ginco Has Two Crypto Mining Operations in Mongolia
Ginco is leading the pack of Japanese industrial crypto miners exploiting the Mongolia nation’s cheap electricity. The Tokyo-based e-wallet company has two mining farms in Ulaanbaatar, Mongolia’s capital city.
At a time where most mining operations in Asia as a whole are shutting down operations and selling their miners for parts, Ginco decided to move its mining operation to Mongolia where it is now recording profits from mining several cryptocurrencies.
Mining in Mongolia Reduce Cost of Cooling System
Apart from its very cheap electricity cost, Mongolia also boasts of an extremely cold temperature, thereby reducing the need for cooling systems normally used in a crypto mining operation. This puts the country in the leagues of countries where crypto mining is cheap and profitable even with the extremely bearish and underpriced market conditions.
Mongolia which recently partnered with Terra, a blockchain payment system that is backed by exchanges such as Binance and Houbi has recently approved crypto-friendly legislation, through its central bank. The country’s largest telecoms network – Mobicom has also launched its own cryptocurrency, — “Candy”, which has its value pegged to the tugrik (Mongolia’s fiat currency).