Virginia Beach grants $500,000 to local bitcoin mining project
For now, the mine remains in construction phase, although it could begin operating as soon as next week.
The city of Virginia Beach has pledged $500,000 to help install a bitcoin mine, expected to generate local jobs.
The recipient of the Virginia Beach Development Authority’s funding resources is Bcause LLC, an internet-based global financial market solutions company which focuses on the rapidly growing digital currency ecosystem.
The company has mustered a $64.8 million capital investment for business property, furniture, fixtures and digital mining equipment. For now, the mine remains in construction phase, although it could begin operating as soon as next week, according to The Virginian Pilot.
Bcause told the local online news source that it plans to add 100 full-time employees with an average annual salary of $60,000. These new hires will include computer engineers and administrative personnel positions.
“Bcause is pleased to locate what we expect will be part of the largest cryptocurrency mining operation in North America here in Virginia Beach,” Bcause LLC chief executive Fred Grede said.
The company will also be eligible to take advantage of Virginia Beach’s recently reduced business property tax rate for computers and peripherals used in data centers, which is now $0.40 per $100 of 40% of assessed value.
This isn’t the first time the public sector has supported jobs growth backing the growing crpytocurrency space. In June 2017, Montana’s government committed $416,000 to assist bitcoin mining venture, Project Spokane. However, ABC Fox Montana recently reported that local residents are upset about increased noise pollution.
Around 80% of all bitcoin supply has been mined, with 4.2 million coins remaining until the total is exhausted. There is a supply cap of 21 million bitcoins. This rarity helps boost demand and can increase an asset’s value.
Recent data reveals that at this time last year 16.1 million (77%) bitcoins had been mined. Two years ago, this figure was just over 15 million (72%). This means about 8% of new bitcoins were mined in the past two years.
While a number of countries and central banks are considering the implications of banning and issuing official cryptocurrencies, the United States Federal Reserve is “unlikely” to introduce its own digital currency.
Global finance giant Visa does not consider cryptocurrencies, such as bitcoin, an acceptable form of payment.