Selling the machine by the pound? A Russian grandmother who loves mining tells her story

According to a report by the British Broadcasting Corporation (BBC) last Saturday, several grandmother-level miners in Russia are very optimistic about the future of the industry. In a video report released by the BBC titled "Bitcoin Babushka: Cryptocurrency Mining in Siberia", Russian grandmother Valeria said that her son chose to enter the crypto mining industry due to poor karaoke revenue and gave her a mining machine as a gift. Since then, Valeria has been extremely happy because she can finally make money.

In a row of red-brick residential areas in Irkutsk, Russia's Siberian province, a series of small Bitcoin mining machines are operating on the support of cheap electricity. Here lives a group of optimistic miners, and the family of Grandma Valeria is a typical representative.

“I want to make my own money”

This grandmother-level miner named Valeria has never regretted it since she received the gift of mining equipment from her son Yuri. Valeria said in a recent interview with the BBC:

“I’m leaving a large inheritance to my grandchildren, and Bitcoin will be worth $1 million.”

The grandmother is not troubled by the temporary downturn in the cryptocurrency market, which has caused a sharp drop in earnings for some large bitcoin mining companies. "I want to make my own money," Valeria said, with an infectious smile that comes from the heart.

Siberian bitcoin miners, known locally as babushaks, are optimistic about the future of mining despite the current market conditions, with bitcoin trading prices down more than 80 percent from their all-time high of nearly $20,000 in December last year. Coupled with the rising hashrate of the bitcoin network, bitcoin mining is becoming less and less profitable.

Irkutsk, with its cold climate and cheap electricity, is a haven for Russian miners. The cooler temperatures help reduce the need for cooling systems for mining hardware. Bold and innovative babushaks, with an eye on long-term profits, also use the heat from mining equipment to dry crops.

It is reported that the grandmother's son Yuri is considered a pioneer in Bitcoin mining in the Irkutsk region. When his previous job, karaoke business, became increasingly deserted, he started mining. Now, he and his family run this mining farm in a city that calls itself the "crypto capital of Russia." Yuri said:

"You don't need to be a great expert for this business. It's a simple system that only requires a computer connected to electricity and the internet."

Mining and drying crops at the same time

Marina, a Siberian resident, also has a Bitcoin mining business that spans the financial and agricultural fields. When she talked about her mining journey, she said she would first like to thank a friend:

"It all started with a friend's suggestion. One day he said to me: 'Marina, buy some mining machines!' I thought about it and said: 'Okay.' He helped me buy them and installed them. I have no regrets about entering this field, and I earned back my capital in about 8 to 9 months."

“There they are, those boxes that hum and bring in money,” she said, pointing proudly to the three mining machines lined up outside her home. In cold Siberia, the warmth they give off is most welcome.

“All the heating is perfect for drying pumpkins, tea and herbs, which can be dried in a day,” Marina said, holding a tray of drying scent leaves.

The downturn has affected the mining market

While small miners are unfazed by the slowdown in 2018, some large miners are already scaling back their operations.

Last week, Japanese Internet giant GMO announced a huge loss of 24 billion yen (about 218 million U.S. dollars) and decided to stop all mining machine research and development, manufacturing and sales activities, but will continue mining within the company. It also stated that it will relocate the mining center to seek a cleaner and lower-cost energy supply.