Russia has a chance to become # 1 in the bitcoin mining market

CONTENT

  • Russia has the resources to become a leader in the mining industry

  • RF ranks second in bitcoin hashrate

  • Russia may oust China from the place of the leader in the field of BTC mining

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Researchers at Xangle Research analyzed the amount of bitcoin (BTC) hashrate generated in Russia, as well as the activity of Russians on crypto-exchanges, and came to the conclusion that Russia could become a key player in the digital asset market. Analysts came to this conclusion,.

As of August 27, 2020, most of the computing power aimed at mining bitcoin is concentrated in China (71.7%). Russia, with a result of 6.08%, is in second place. The United States closes the top three – 5.29% of the BTC hashrate is concentrated in the country. 

Bitcoin hashrate distribution map. Data: cbeci.org

Many members of the crypto community believe that the PRC is at risk of losing its status as a center for bitcoin mining. In early August, Jameson Lopp, CTO of the Casa startup, analyzed China’s position in the mining market and told what the future holds for the industry. In his opinion, the PRC will face competition as miners from other countries will gain access to more profitable sources of electricity. As a result, the hashrate of bitcoin, he believes, will begin to “flow” to other jurisdictions.

Inside a Bitcoin mine that earns $70K a day

Read also: China cedes share in the cryptocurrency mining market to Kazakhstan and Russia

It is profitable to mine in Russia

Russia, as number 2 in the BTC mining market, is closest to the palm. The RF has a number of advantages, including a climate suitable for installing equipment, cheap electricity, and free land. For example, bitcoin miners liked Bratsk, a city in the Irkutsk region. In September, news broke out in a number of media outlets that they were connecting their equipment to a local hydroelectric power plant.. 

Mining farm in Bratsk. Source: CoinDesk

The low average annual temperature of Bratsk saves on equipment cooling, and the low rent reduces the cost of doing business. In the future, such advantages may open up opportunities for expanding the mining market for Russia..

Bratsk climate. Data: climatebase.ru

Read also: Russia may become a new oasis for miners

Legalization of cryptocurrencies will accelerate the development of the industry

Also, researchers at Xangle Research drew attention to the potential for the development of the digital asset market in Russia against the background of the legalization of cryptocurrencies. Recall, according to the adopted bill, from January 1, 2021, a new financial instrument in the Russian Federation becomes legal. At the same time, the use of cryptocurrencies as a means of settlements in the country will be illegal. Learn more about the regulation of the crypto industry in Russia from our material.

The most popular exchanges among Russians, according to Xangle Research, are Bittrex, Bitfinex and Binance. 

Recall that recently the head of Binance for Russia and the CIS, Gleb Kostarev, spoke about the growing interest in digital assets in the territory entrusted to him. At the same time, the CEO of the trading platform, Changpeng Zhao, considers the Russian Federation a “key market”.

Russia has a chance to become # 1 in the bitcoin mining market

Among the platforms focused on working with derivatives, Russians most often choose BitMEX.

The researchers drew attention to the fact that Russian citizens prefer to work on platforms with ruble-denominated crypto-fiat gateways. EXMO turned out to be the leader. 

At the same time, the position of the national currency of Russia in general statistics is as follows:

Work on the formation of the regulatory framework, as well as the interest of Russians in digital assets, according to analysts at Xangle Research, open up prospects for further development for the Russian Federation.

While the Russian crypto community members are waiting for the new laws to come into force, the Spanish startup with Ukrainian roots MonolithosDAO is working on creating a crypto version of the ruble. Learn more about the project from our review. 

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Russia has a chance to become # 1 in the bitcoin mining market
Russia has a chance to become # 1 in the bitcoin mining market
Russia has a chance to become # 1 in the bitcoin mining market
Russia has a chance to become # 1 in the bitcoin mining market

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