Friday, July 30, 2021

Kazakhstan overtakes Russia in crypto mining volume.

The Takeaway:

Despite its abundant sources of cheap energy, Russia is now behind Kazakhstan, another Eurasian Economic Union member, in terms of cryptocurrency mining volume.

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The Russian Association of Crypto Industry and Blockchain (Racib) has introduced a project to bring a larger portion of the global computing potential engaged in cryptocurrency mining to Russia. The Russian Federation, Racib noted in an announcement, ranks among the top five nations by total electricity production. Russian’s energy system features unique characteristics that can benefit enterprises involved in the minting of cryptocurrencies.

 

Russia could provide more favourable conditions for crypto mining. 

Racib has listed a number of them, including the large surplus of power-generating capacity, which reaches 50% in certain regions. The colder Russian climate is another advantage as it allows the cooling of mining equipment at little cost, thus improving the efficiency of data centers. Add to that the wide availability of traditional fuels and other energy resources and the low population density in many areas that make it possible to deploy large-scale facilities and infrastructure. Racib noted, “All this provides the best conditions for the formation of specialized clusters in the country to support the global cryptocurrency networks and the infrastructure of the global digital economy.”

 

Crypto miners flee to Kazakhstan amid the Chinese crackdown on crypto.   

Environmental concerns are believed to be a major motive behind Beijing’s crackdown on crypto mining. Several countries have been quicker to take advantage of the crackdown, including Kazakhstan, another former Soviet Republic, and a member of the Russia-led Eurasian Economic Union luring crypto miners to their territory. Eco-friendly hydro and nuclear energy sources form around 40% of Russia’s energy balance. And as far as Bitcoin is concerned, Russia’s involvement in the miners’ migration from China should “provide a more decentralized network format of the cryptocurrency” and help “avoid another concentration of mining resources in one region, in this case, North America.”

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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