Russia is now the second-largest country in the world in terms of Bitcoin and cryptocurrency mining, according to reports from Kommersant.
The United States still holds the top spot, with a mining capacity of 3-4 GW, followed by Russia with 1 GW. Other countries in the top 10 include Gulf countries, Canada, Malaysia, Argentina, Iceland, Paraguay, Kazakhstan, and Ireland.
The rise in Russia’s mining capacity has been attributed to restrictions on mining activities in other countries, including Kazakhstan and China.
Experts at BitRiver believe the trend will continue, with the lack of clear cryptocurrency regulations in the United States potentially leading to a shift in the market distribution.
Bitcoin mining is the process of verifying digital transactions on the Bitcoin network by solving complex cryptographic puzzles. It is an essential part of the decentralized blockchain ledger.
The positive trend in Russia’s mining capacity is expected to benefit the country’s economy, specifically the electric power and information technology industries.
The Cambridge Center for Alternative Finance’s report shows that Russia was previously ranked third in cryptocurrency mining at the end of 2021, surpassing both the United States and Kazakhstan in terms of bitcoin mining capacity. However, in January 2022, the country dropped to fifth place.
The new legislation signed by Kazakhstan’s President Kassym-Jomart Tokayev in February 2023 will provide a sense of security for mining industry players, allowing them to plan their operational and financial activities and draw investments.
This will benefit related sectors of the Russian economy, including the electric power and information technology industries.