“Favorable climate” for crypto mining: Russia is hot on the heels of the United States

If we take into account the statistics of 2022, Russia must multiply by 13 its GDP if it wants to dethrone the United States. With the rains of sanctions issued against her due to the war in Ukraine, President Vladimir Putin had to admit that the Russian economy is in trouble. Fortunately there is other rankings that do not take into account the Gross Domestic Product. On the crypto mining front, the Russian bear looks very aggressive. A situation that should alert the White House?

Cryptocurrency mining, Russia in 2e position

Recent decisions in favor of crypto mining in Russia have indeed borne fruit. Because the BitRiver report indicates that catch-ups have been made on that side.

In a publication dated April 7, Kommersant broke down said report and shared the following ranking.

  1. United States: with 3 to 4 GW of mining capacity ;
  2. Russia: 1 GW (it was at 500 MW in 2022);
  3. Gulf countries: 700 MW;
  4. Canada: 400MW;
  5. Malaysia: 300MW;
  6. Argentina: 135 MW;
  7. Iceland: 120 MW;
  8. Paraguay: 100 to 125 MW;
  9. Kazakhstan: 100MW;
  10. Ireland: 90 MW.

By comparing data from previous years, we can say that:

  • Russia let China dominate in cryptocurrency mining in 2020 and 2021;
  • she represented 6.9% of total bitcoin hash rate at the time.

What is behind this rise?

But this sudden rise of Russia in this ranking would have several reasons. Among others, there are:

  • there repression activities related to bitcoin mining in China;
  • the adoption of the same position in Kazakhstan in 2022 by fear of power shortage ;
  • THE Difficult conditions experienced by American miners (high price of electricity, drop in profitability, lack of tax incentive, etc.);

But it is also clear that Russia has several regions suitable for cryptocurrency mining. In these localities, to cite only Krasnoyarsk, Irkutsk and Sverdlovsk, the price of electricity is perceived there as a favorable climate to cryptocurrency mining. No need to build up a solid budget to afford a immersion cooling system.

While waiting to beat the United States in the ranking of the most advanced countries in terms of crypto mining, Putin’s Russia must also think about sitting down quickly balanced regulation of the sector.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential Tremplin.io!

Similar Posts