CandleFocus

Russia May Lead A Wave of Crypto Miners

Author: Lucy Clark
Experts predict that increasing regulations, energy costs and taxes in countries such as the U.S. and Kazakhstan could lead to a new wave of crypto miners moving to Russia. This is largely because of the country's abundance of low-cost energy, powered by nuclear and hydropower sources, and the recent legalization of cryptocurrency mining by the Russian government. Intelion Information Systems predict that Russia could reach around 18% of the global bitcoin hashrate due to this new migration.

Moreover, the ongoing banking crisis in the U.S. and Europe will likely generate an escalating demand for bitcoin, creating an interest in cryptocurrency among conventional financial institutions. This will likely cause a surge in global mining activity and give Russia the opportunity to increase its share of the crypto mining market.

Furthermore, this increase in Russian influence in the crypto space could have far-reaching implications. For one, there could be increased competition among miners and potential shifts in the way the market is functioning. What remains to be seen is how these shifts play out in the geopolitical landscape. However, all these developments will be informed by how the Russian government continues to regulate cryptocurrency mining in the country. As Intelion has pointed out, mining in Russia must be recognized as a “legitimate business activity” in order to promote an advantageous investment environment.

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