Bitcoin Mining Revenue in Russia Grew 18 Times in 4 Years Before ‘Worst Quarter’ – Mining Bitcoin News

Russian profits from bitcoin minting saw a multifold rise in recent years. However, they have been steadily declining since the spring. A new study also revealed that this sector was growing in both the ups and downs of the cryptocurrency market.

$1.4 Billion in Turnover Expected From Russia’s Bitcoin Mining This Year as Business Shrinks

According to RBC Crypto, the revenue generated by bitcoin mining in Russia increased by 18 percent between 2017-2020. The total increased from 7 billion rubles (below $114million, current exchange rates), to 128 miliarde rubles (over 2 billion) during the same period.

The research shows that bitcoin mining revenues have dropped by just over 57 million rubles in eight months ($929 millions) despite an optimistic start to 2022. Experts consider the second quarter to be one of the most difficult in more than a decade.

Russia controlled 6.6% of global monthly hashrate in January 2022, but this share is declining as Russian miners are later subject to U.S. sanctions for the conflict in Ukraine. These indicators are indicative of the anticipated annual turnover for the segment in this year’s year, which is less than $1.39 trillion.

The analysts note that Russia’s mining activity has shown significant growth in the past five year. This sector has seen a rapid increase in revenues since 2017 when its popularity increased exponentially.

Timofey Smenov, CEO at Intelion Data Systems believes that crypto mining has enormous potential and can have significant economic impact in Russia. This can help Russia to develop its IT infrastructure, and draw investments from its oil-rich areas.

Another study conducted earlier by Semenov’s company revealed that data centers minting digital currencies now use 20 times more electricity than five years ago. In August, they stated that the sector’s total energy consumption has exceeded that of agriculture.

What do you think about the Russian mining industry’s ability to grow despite increasing sanctions? Please comment below with your opinions.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.