A new region in Japan is considering cryptocurrency mining.
Kumamoto Electric Power Company and Oz Mining Corporation have decided to create a virtual currency mining farm in southern Japan.
This farm is expected to open in August and contain 14,000 mining machines, to reach a profit of 90 million yen in 2020.
A cheaper electricity for the mining of Cryptocurrencies
It is in the south of Japan, in the city of Kumamoto, on the island of Kyushu, that will be located the mining farm.
But the company Kumamoto Electric Power Company does not stop there. It plans to expand mining activity throughout Japan.
To do this, the company plans to use the cheapest electricity in the country via Kansai Electric Power Company (KEPCO) and Tokyo Electric Power Company (TEPCO).
Indeed, since 2016, Japan has privatized the electricity market and more and more electricity companies are offering very competitive rates.
Mining Activity in Japan
Until now, the Japanese mining activity was limited to an encryption plant with 500 miners in the Fukui countryside.
Fukui is a Japanese city located in the north of China.
But the mining company Alt. Design, founded in 2017 in Tokyo and operating the Fukui mine, has decided to expand and invest in other parts of the country.
Its founder, Yuta Funayama, explained: “We wanted to offer our customers and investors, mainly Japanese, the opportunity to see the miners with their own eyes.”
Initially, the reason the mining company moved to Fukui was primarily economic:
Firstly because the municipality of Fukui offers lighter taxes for new businesses, especially those working in IT.
In addition, local authorities offer subsidies to these same companies.
For example, they propose to pay only half of the rent if they install their premises in unused factories.
Hiroyasu Yoshida, representative of the Fukui Municipality, explains:
“We offer businesses that want to settle in our city to pay up to half of their rent for three years”.
Second, because the Hokuriku area, located north of the main island of Japan, facing China, is also known for its cheap electricity.
Japan resolutely turned towards the world of cryptocurrencies
But regarding the new Kumamoto installation project, Alt.Design spokesperson Yuya Yamamoto said:
“The Japanese are investing in overseas mines, but they have expressed concern that it is more difficult to verify what is going on in mining, especially if they are located outside of Japan. What we also offer is the “Japanese quality” service in which we believe that the management of our miners is solid. “…” Our employees all have IT training. Miners work 24 hours a day, 7 days a week, and our staff rotates daily to check that everything is going well, “Yamamoto said. We believe that our expertise is to process any incident quickly. “
It should be noted that the mining company is able to generate about 200 ETH and LTC in a month.
Japan was one of the first countries to favorably regulate cryptocurrencies.
This country, always at the forefront of modernity and new developments in the field of high tech, turns resolutely and without fears towards the new technologies represented by virtual currencies.
With these new mining plants, Japan is still taking a step towards cryptocurrencies.