Russia Could Take 18% Of Bitcoin’s Hashrate In Next Big Crypto Miner Migration, Experts Say – Mining Bitcoin News

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Rising regulatory pressures, tax burdens and energy costs in countries like the United States and Kazakhstan will likely lead to another large migration of crypto miners, Russian analysts believe. In such a scenario, Russia has what it takes to occupy up to 18% of the global bitcoin hashrate, they claim.

Russia could attract half of Kazakhstan’s cryptocurrency miners

The Russian Federation has a chance to increase its leadership in crypto mining, amid negative developments for the industry elsewhere. According to specialists from Intelion Data Systems, a major Russian importer and distributor of mining equipment, the country’s share in the Bitcoin hashrate can potentially reach 18%.

In January 2022, Russia accounted for nearly 4.7% of global hashrate, according to calculations by the Cambridge Center for Alternative Finance, ranking fifth among top mining destinations. However, tougher policies towards the sector in major countries may trigger another major migration of miners, similar to that which followed China’s crackdown on the sector in 2021.

New restrictions on access to low-cost energy amid rising electricity tariffs and the introduction of higher taxes could lead to the relocation to Russia of up to 6% of state mining capacities United States, Canada and China, as well as about half of the miners in Kazakhstan, projected the Intelion team, quoted by the crypto page of the Russian business news portal RBC.

In this case, Russia’s share of Bitcoin’s global hashrate could reach 18%, which will represent 3.95 GW of electricity consumption with an average cost of 128 billion rubles (almost $1.7 billion). ). In April, the main Russian mining operator, Bitriver, estimated that Russia had already risen to second place in terms of the total electrical capacity of facilities engaged in the mining of digital currencies. Timofey Semyonov, CEO of Intelion Data Systems, commented:

Russia has every chance to change the existing hierarchy of the global crypto mining market. The country has everything for this: low cost of electricity, free capacity reserves, energy infrastructure developed in many regions.

Semyonov also pointed to increased efforts by a number of Russian companies to expand their business as well as government support for the industry. While lawmakers have yet to pass the long-awaited mining legislation, official statements in Moscow have indicated that Russian authorities intend to use what President Putin described as Russia’s competitive advantages as a mining hotspot.

To create a favorable investment climate, mining in Russia must become a legal business activity with clear rules of the game, Intelion experts also said. They believe that the banking sector crisis in the United States and Europe, which is only just beginning, will lead to a growing demand for bitcoin as a hedging tool and interest in crypto among traditional financial institutions, which should lead to an increase. global mining volumes.

Tags in this story Bitcoin, consumption, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Electricity, Hashrate, Kazakhstan, Migration, Miners, mining, mining destination, mining hotspot, power capacity, relocation, Russia, Russian, United States

Do you agree that Russia has the potential to become a top destination for cryptocurrency mining? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: Being a writer is who I am, rather than what I do. Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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