Russia ranked second in the world in cryptocurrency mining
The Russian cryptocurrency mining market is showing impressive growth. According to experts, in 2023 mining volumes have more than doubled compared to the previous year, Kommersant reports. According to the largest operator of mining data centers BitRiver, 54 thousand bitcoins worth $3.5 billion were mined in Russia, which allowed the country to take second place in the world in terms of cryptocurrency mining volumes, second only to the United States.
Experts predict that under favorable conditions, growth rates could range from 20 to 40% this year. This requires the adoption of balanced regulation of the industry, which will consolidate Russia’s position as one of the leaders in the world market.
Last year, about 2.2 GW of mining capacity was already operating in the Russian Federation. For comparison, in the USA this figure was 5.3 GW. At the same time, the vast majority of Russian capacities are used specifically for Bitcoin mining - almost up to 95%, according to BitRiver estimates.
There are several key factors that make Russia attractive for miners. These are low electricity tariffs, the favorable climate of Siberia and other northern regions for cooling equipment, and the availability of free production sites. For example, as Nikita Vassev, founder of TerraCrypto, notes, the cost of mining 1 bitcoin for a farm of 200 machines is about 2.8 million rubles per month. And at current prices, this amount will pay for itself in six months.
Currently, cryptocurrency mining activities in Russia are not regulated at the legislative level. However, the State Duma is already considering relevant bills, since according to the law “On Digital Financial Assets”, cryptocurrency has become recognized as property, says Yaroslav Shitsle, head of IT&IP dispute resolution at the law firm Rustam Kurmaev and Partners. According to experts, the adoption of balanced regulation will only strengthen Russia’s position in the global mining market. However, excessive regulation poses risks to the profitability of the industry, Schietzle warns.
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