Prospects for the development of bitcoin mining in Russia

China is still considered the center of mining life. More than 70% of mining farms are concentrated specificallyhere. This growth of cryptocurrency mining enterprises is facilitated by the low cost of electricity and the concentration of mining equipment factories. However, the Chinese miners themselves are confident that Russia can become a new oasis for cryptocurrency mining farms.

Cold and cheap electricity: the main advantages

The main advantages of Russia for miners are cheap electricity, cold, as well as the presence of a huge number of unused buildings that can be converted to mining farms.

“We expect Russia to become more visible inthe field of bitcoin mining. The region produces green, renewable and surplus electricity throughout the year, and the government supports such enterprises economically,  which bring large mining operations like ours to the region.”, Says Igor Runets, CEO of BitRiver Mining Farm.

Binance Pool CEO Alice Xu agreed thatIn the near future, Russia will indeed increase its presence in the mining market, but it is still unlikely to become a real competitor to China. The main limiting factors remain the lack of infrastructure around power plants that operate in the green and renewable energy sector.

“As I understand it, countries like the United States,Russia, Turkey and Ukraine are gradually gaining interest in mining bitcoins, but I do not think that they will take the position of China as the largest mining country in the world. ”She said.

Also, hold back the pace of mining development inRussia may be the cost of bitcoin. According to Igor Runets, if the price of bitcoin remains unchanged, then bitcoin mining is expected to decrease, as old-generation mining equipment becomes unprofitable and goes offline at mining farms, which are more focused on short-term benefits than on long-term or sustainable businesses. -operations.

Government support needed

One of China’s main success factorsmining is state support. And if last year the government wanted to ban the extraction of cryptocurrencies, then already this year the development of the mining industry was included in strategic and priority projects.

Given this, it is unlikely that a reduction in productionBitcoin will have a big impact on the concentration of mining in China. This may reduce it, but for some time, China will remain the main player in bitcoin mining.

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