I present to your attention a new weekly column EXPERT OPINION. Leading crypto industry experts will share their opinions and knowledge with you. Today we will discuss mining with Alexander Baryshnikov, head of the development of digital projects at BitRiver. Currently, it is the largest operator of data centers for cryptocurrency mining in Eurasia.
Is it true that in Russia there is a mining renaissance due to the ruble exchange rate?
Indeed, by the end of the first half of the year, Russia caught up with the United States in terms of growth rates in the mining industry. This is due to the exponential development of cryptocurrency mining in the Russian Federation and a decrease in activity in the States.
Russia has an advantage in climatic conditions for the operation of energy-intensive equipment, comfortable prices for electricity and, most importantly, offers the best conditions for partners focused on long-term cooperation.
The US market remains quite competitive, but in some areas the Russian market has become more attractive. In different states, as well as in Russian regions, the conditions for the development of the industry differ significantly.
Among the main reasons for the growth of the mining industry in Russia:
- qualified IT specialists
- relatively low prices for electricity
- availability of free “green” and low-carbon energy capacity
- regulatory pressure on the crypto industry in certain countries of the world (USA, Europe)
- rising prices for electricity in the world
- tightening fiscal policy in Western countries
How are miners preparing for the upcoming BTC halving?
Historically, such moments have always been accompanied by renewed interest in Bitcoin and the formation of major bullish trends in the market. The period leading up to halving is traditionally seen as a time for accumulating cryptocurrency. Investors and market participants expect that this period of accumulation will be followed by a significant increase in the value of BTC. This makes the current moment particularly attractive for long-term investments and mining investments.
What is the minimum entry into mining?
To start mining cryptocurrency, you will need to purchase specialized equipment, such as ASIC miners or video cards. The cost of such equipment can vary from several tens of thousands of rubles to several hundred thousand, depending on the performance and model.
The minimum entry threshold for industrial mining is 10 million rubles, since it makes sense to purchase at least 50 devices. Yes, you can run one ASIC, but you can get significant savings on maintenance costs (cooling, ventilation, security, etc.) and the cost of electricity only with large volumes of devices.
In Russia there is now an increased interest in mining-based investment products from leading investment houses. Many of them are considering the possibility of selling the product both in the format of a classic closed-end mutual fund and within the framework of the fast-growing DFA market. The advantage of this approach is that investors can avoid the difficulties associated with purchasing equipment, finding a suitable site for its placement, and also reduce the barrier to entry, since it is possible to sell one piece of equipment through splitting and further sale to the investor in the form of a DFA.
However, it is worth noting that the successful implementation of large investment projects in this area is only possible in partnership with the leaders of industrial mining in the Russian Federation, who have the necessary capacities and modern data centers equipped to the best industry standards. And most importantly, the implementation of such projects will be possible after the introduction of mining into the legal field.
What is the profitability of mining now?
Mining profitability is a complex parameter that depends on many factors. The main one is the cost of electricity. The more favorable the tariff conditions, the higher the profitability will be. Profitability is also affected by the cost of equipment placement, its maintenance and other parameters. Market conditions also play an important role. The higher the price of Bitcoin, the more profitable it is to mine it.
What cryptocurrencies are in the top miners?
Bitcoin is the#1cryptocurrency among miners. The influx of miners into this cryptocurrency is constantly growing, which is reflected in the complexity of the Bitcoin network, which is constantly growing, updating historical highs. The same dynamics are demonstrated by the hashrate, which regularly reaches new peak values, which means a constant increase in the reliability and security of the Bitcoin network, and this attracts new miners.
