Bitcoin Babushkas: Cryptocurrency mining in Siberia – BBC News
Russia could become a new oasis for miners
Russia can become an influential player in the mining market
The country has attractive conditions for miners
The Chinese government strongly encourages cryptocurrency mining
China is still considered the center of the mining life. More than 70% of mining farms are concentrated here.
The low cost of electricity and the concentration of mining equipment factories contribute to this growth in cryptocurrency mining enterprises. However, the Chinese miners themselves are confident that Russia could become a new oasis for cryptocurrency mining farms..
Cold and cheap electricity: the main advantages
The main advantages of Russia for miners remain cheap electricity, cold, as well as the presence of a huge number of unused buildings that can be converted into mining farms.
“We expect Russia to become more prominent in bitcoin mining. The region produces green, renewable and surplus electricity throughout the year, and the government supports such enterprises economically, which bring large mining enterprises such as ours to the region, ”says Igor Runets, CEO of BitRiver mining farm..
The head of Binance Pool, Alisa Xu, agreed that Russia will indeed increase its presence in the mining market in the near future, but China is unlikely to become a real competitor. Lack of infrastructure around power plants operating in the green and renewable energy sector remains the main constraint.
“As far as I understand, countries like the United States, Russia, Turkey and Ukraine are gradually gaining interest in mining bitcoins, but I don’t think they will take China’s position as the largest miner country in the world,” she said..
In addition, the cost of bitcoin can also restrain the pace of development of mining in Russia. According to Igor Runets, if the bitcoin price remains unchanged, then a decrease in production is expected ??? bitcoin as mining equipment of the old generation becomes unprofitable and goes offline on mining farms, which are more focused on short-term benefits than long-term or sustainable business operations.
Government support needed
One of the main factors of China’s success in mining is government support.
And if last year the government wanted to ban the mining of cryptocurrencies, then this year the development of the mining industry is included in strategic and priority projects.
Given this, it is unlikely that the decline in bitcoin mining will have a big impact on mining concentration in China. This may reduce it, but China will remain the main player in bitcoin mining for some time..
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