The CEO of a company that plans to build a data center for cryptocurrency mining west of Butte, Montana, isn't worried about the price of Bitcoin, which has fallen to nearly $3,200. In fact, Power BLock Coin LCC co-founder Aaron Tilton believes that the price reduction could benefit some miners.
Tilton said that as the value of Bitcoin decreases, the cost of mining equipment also tends to decrease. Low demand makes the stagnant market an excellent investment for those planning to stay in the cryptocurrency industry for the long haul.
The company announced the facility near Butte back in February, at which time its management expected to invest about $251 million over 36 months in Montana Connections, including $8 million to build new electricity infrastructure and a substation. The 135-megawatt facility will house between 70 and 200 rigs, which range in size from a large warehouse to a small shipping container.
The company plans to launch the project in the summer, initially the institution will be supported by 15 employees. Executives say they plan to open three additional facilities with similar data centers, and hope to begin construction on one in the first quarter of 2019. Aaron Tilton did not share details about the planned locations of the other centers.
When asked whether the fall in the value of Bitcoin could affect the viability of the Montana Connections project, Tilton said he was not concerned. One reason is that Power Block Coin will not mine cryptocurrency directly. Instead, the company will become a service provider, providing its customers with space, infrastructure and capacity for mining operations.
Howard Wu, a researcher and managing partner at Dekrypt Capital, said the price of Bitcoin could indeed have an impact on the miner market.
Mining is a fundamental part of Bitcoin. For long-term Bitcoin supporters, price doesn't matter as much. If prices remain at current levels, I anticipate that mining device suppliers will reduce prices in order to meet market demand.
According to mtstandard.com
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