Demand for Mining Hardware Spikes in Russia, Prices Rise – Mining Bitcoin News

According to retail data, the Russian market for cryptocurrency mining equipment has experienced strong demand from both buyers and sellers of used products. The demand for applications-specific integrated circuits (ASIC) has increased exponentially this year while the supply of video cards is limited, leading to higher prices.

Russia’s Crypto Miners Want to Increase Computing Power

According to Kommersant, online retailers are reporting a surge in demand for new and used mining machines. The Russian business daily Kommersant reported that searches for bitcoin mining machines (BTC) or ASICs on its classifieds site increased by 14 percent year-on-year. However, supply has increased 13fold.

A mining unit cost an average of 117,900 rubles, or almost $1,600. Microbt in China produced the Most In-Demand Products, which saw 23 percent more demand. At the same time, searches for Antminers built by the Beijing-based company Bitmain were 11 times larger than last year’s figure.

The results of the third quarter of this year’s first quarter show an increase in sales for crypto mining products via, with a 13-fold increase in units and a 14 percent increase in value annually.

The newspaper points out, that after the capital Moscow and Russia’s second-largest city Saint Petersburg, Krasnodar Krai, the Republic of Tatarstan, and Sverdlovsk Oblast have been the main destinations for the majority of the orders. That’s despite these regions not even offering the lowest electricity rates in the country.

Due to the shortage of microchips worldwide, graphics processing units (GPUs) have been hard to find. This has also led prices to rise. The market experienced a 129.6% increase in its value over the 10 first months of 2021. However, GPU sales dropped by 15.8% year-over-year according to Anton Fomin. According to the report:

Although retailers and suppliers have had to increase the cost of their devices, consumers are happy to pay almost any price.

Fomin thinks that video card markets will remain in a difficult spot as long as there are crypto farms that bring in an income. Kommersant quotes Fomin as saying that while the deficit will likely not be eliminated by the year 2023, it is possible to reduce the time taken to deliver the goods, which would decrease from 48-50 weeks down to 10-14 week.

Since this spring, the Chinese government has been cracking down against cryptocurrency mining. Russia’s energy wealth makes it one of many top destinations for those who want to mine bitcoins in friendlier countries. Data published by the Financial Times in November revealed that the Russian Federation has received the bulk of the mining machines moved out of the People’s Republic amid the miners’ exodus.

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Are you positive that Russia’s mining equipment demand will grow in the future? Please let us know what you think in the comment section.

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.

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