CandleFocus

Can BRICS miners really win the hashing war and bypass sanctions?

Author: Content Editor
The recent BRICS summit in Russia raised the issue of international sanctions and capital controls, with Bitcoin mining being considered as a potential way to bypass these restrictions. Experts suggest that if BRICS countries are able to mine Bitcoin, they could find buyers and bypass some of the sanctions. However, it is unlikely that they would flood the market with newly mined coins due to the transparency of blockchain and the ability for exchanges to blacklist wallets. Despite the potential benefits of using cryptocurrencies to bypass capital controls, it is unlikely to be enough to bypass global sanctions. Russia's BitRiver has partnered with the Russian Direct Investment Fund to build mining and AI facilities across BRICS nations. Russia will also implement a registration regime for large-scale mining operations from November 1. BRICS countries are lagging in terms of Bitcoin infrastructure, but they have a high level of crypto adoption. However, their crypto markets are disparate and may not form a unified bloc of miners. The earnings potential of Bitcoin mining has also been limited due to the declining block rewards. Despite these limitations, Bitmain's machines are easily accessible to international miners and the company supplies most of the big mining farms with equipment.

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