When the electricity prices increased by 15% in Turkey, two weeks later, a new store was launched in Istanbul. It was selling mining equipment of highly professional caliber. Istanbul is the hub of all business in the country, is the first to open doors for the new store. It seems more like a counterintuitive effort to the rise in electricity than just opening a store. However, when it came to opening a Phoenix Store in Istanbul, there was some math behind it.
Phoenix, the sales partner of Bitman in the Middle East, did not jump into opening the second store in the region. The CEO of Phoenix Store, Phil Harvey, talked about the company’s primary goal in opening the store to educate Turkey’s crypto-friendly populace regarding crypto mining. Once the people are aware of the scope of crypto mining, they will more likely be interested in purchasing the hosting services and the mining equipment. The new equipment and services will open doors for them to operate in the US, Russia, and Canada as, to date, mining is not feasible in Turkey. The CEO further commented:
“It’s like you want to invest in gold mining. You can come here and invest in a gold mine, but it’s not going to be in the back garden. It’s going to be outside.”
The Cointelegraph Turkey had a great conversation and learning experience with Harvey after the presentation. He sat down to learn about the scope of crypto mining in the current situation of China in mining operations. To move towards betterment, China will have to maintain the same pace for bringing new projects to the country. In addition, the country needs a helping hand and improvement in various areas. Firstly, the most important area of improvement is the carbon footprint which needs to be reduced severely. Secondly, the country should focus on getting funds from the World Bank or IMF.
Considering both the options, the easiest of all the ways is to reduce the carbon footprints overnight. China has been deprived of 68,000 gigawatts of power just because the country said no to the mining of Bitcoin. Although being a vital revenue stream, it is nothing compared to what the IMF or World Bank funding could do once they invest in different projects in China. As per Harvey, it was an easy decision to remove the miners and diminish the carbon footprint within the country.
Many miners in the country have announced their relocation to colder countries such as Canada. Still, Harvey is confident China has lost because the crackdown might not go back to the same level online. The major reason is that the machines are now outdated as they had been in the warehouse for many years and gave only 5% to 10% output. Still, this doesn’t seem to be wise commercially to take out those machines and move them elsewhere. Each machine would cost around $150 to $200, and then the same amount of money would be required to relocate those machines. So it doesn’t make sense to do that. Moreover, whatever network is lost by the country, it could not be regained.
Harvey believes that Kazakhstan and Russia might add new machines to their network, which will increase their share in the market. However, he still does not have any plans to open his store in that region. He already has two stores, one in Dubai and the other one in Istanbul. He is more likely to open one in London, but he does not want to expand to more than three outlets in different locations.