As the taxes, energy costs, and regulations get tougher in countries such as USA and Kazakhstan, miners of crypto may move away to new places. According to Russian scientists, Russia could be a good place for them, with as much as 18% of the global Bitcoin mining work being done here.
Russia Shakes Up the Crypto Mining Industry!
Russia has a chance to become more influential in the world of crypto mining. Intelion Data Systems, which brings mining hardware into Russia, think that 18% of Bitcoin’s computing power could be coming from Russia.
Russia is currently the fifth largest country for mining cryptocurrency, with nearly 4.7% of the world’s hashrate in January 2022 according to experts from Cambridge Center for Alternative Finance. But if other big countries change their rules relating to mining bitcoin and such, miners may have to move like they did when China shut down its mining sector in 2021.
Because of the increasing cost of electricity and new taxes, up to 6% of miners from countries like the United States, Canada, and China will likely move to Russia. Also, around half of miners from Kazakhstan might do the same, as reported by Intelion on the Russian business news portal RBC.
Russia could soon be the second biggest Bitcoin miner in the world, consuming around 3.95 Gigawatts (GW) of electricity which costs an estimated 128 billion Rubles or roughly $1.7 billion. The prediction was made by Bitriver, a leading Russian mining operator, and Timofey Semyonov, CEO of Intelion Data Systems also commented on this news.
Russia has the chance to shake up the current ranking of who is in control of the world’s crypto mining industry. They have all the advantages ready: electricity at a cheap price, extra space, and strong energy outlets found in many areas.
Semyonov pointed out that many Russian companies are doing their best to increase their business and the government is giving them support. Despite the fact that a new law regarding mining has not been approved yet, there are clear signals coming from Moscow suggesting that Russia will use its advantages as a major mining spot according to President Putin.
Intelion experts said that to make mining in Russia a better investment activity, the rules need to be clearer. They believe that because of an ongoing banking crisis in the U.S. and Europe, more people will use bitcoin as an insurance tool and traditional financial institutions will become more interested in cryptocurrency, causing mining numbers around the world to go up.
Do you think Russia could be a world leader when it comes to mining cryptocurrency? Let us know your opinion in the comments section.