I'm usually quiet and don't like to talk much about the impact of macro news like economics and politics on crypto, but today I decided to break the rule once.
🤔If you don't know, in early August, Russia officially recognized the legality of Bitcoin mining, paving the way for more lenient regulations on crypto.
👉This is extremely important news because Russia is the world's top 4 economy (actually the top 2 if calculated in a fairer way), so the capital flow here is not small. When conditions are met, only a part of this flows into crypto, those who hit the top will soon return to shore and even make a profit.
In 2021, we lost a significant amount of capital from China. If we lost Russia, things would have been really bad, but fortunately this did not happen. 😍😍
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As for why Russia is suddenly opening up to crypto, some analysts believe that Russia wants to use blockchain technology to circumvent sanctions.
However, I think this is a story for another 5-7 years. For now, Russia is simply turning around because of the following immediate benefits:
💵First: Crypto still brings revenue to the country.
Statistics show that crypto revenue in Russia has increased more than 20 times since 2018, from $100 million to more than $2.01 billion. This number is certainly larger, because the uncountable OTC crypto market is also very active.
💵Second: Russia is actually a Bitcoin mining powerhouse (possibly second only to the US and China in their heyday)
2 extremely important factors when mining $BTC are electricity price and ambient temperature 🤔
👉Regarding electricity prices, Russia's average electricity price is quite low due to its self-sufficiency in electricity, including coal power, wind power, hydropower and most notably nuclear power. At one point, Russia's electricity price was only 1/10 of the UK and 1/4 of the EU. Low electricity prices have caused mining costs to drop sharply, increasing the competitiveness of Russian mining farms.
👉In terms of temperature, Siberia in Russia is the harshest place in the world, with long winters and average annual temperatures dropping to -25 degrees Celsius, which increases mining efficiency and further reduces mining costs.
Of course, Russia has no reason to eliminate an industry in which they have such advantages.
💥In short, Russia has turned around and opened up to crypto. Big money is still waiting to flow into the market, so why give up now??
Not to mention, Justin Sun also just posted about China wanting to "unban" crypto 👉There are many interesting things waiting! 😁
#cafebit #BitcoinMining
