Experts in crypto mining have identified Russia as a potential player. They also discovered the best regions to conduct coin minting. Moscow, the capital of Russia is one of the most popular mining locations.
Cost of Electricity, Logistics Determine Russian Miners’ Choice of Location for Crypto Farms
Russia has all the necessary ingredients to be a leading country in crypto mining, with low-cost electricity, excess generating capacity and a developed energy infrastructure across many of its territories. That’s one of the conclusions in a study conducted by Intelion Data Systems, an importer of mining equipment, quoted by RBC Crypto.
The company’s researchers say that interest in setting up new data centers for digital currency extraction has increased across the vast country. Timofey Segonov CEO says that businesses have to decide where to locate their facility. It is critical for capital investments to be successful. He pointed out that the most important criteria are sufficient electricity generation and electric rates.
Intelion Data Systems found that 2021 is the most popular year to host mining data centers. This includes the capital Moscow and Moscow Oblast as well as Karelia, Buryatia and Irkutsk as well as the Sverdlovsk Murmansk and Irkutsk areas, the Krasnoyarsk Territorium and the Republic of Khakassia. Power demand was much higher in these four areas than local electricity generation.
The cost of electricity is a major factor in industrial-scale crypto mining. In the case of Moscow and its surrounding region, logistical benefits are also important. Experts have stated in a press release that sometimes the infrastructure is more important than the price of electricity. Data centers are needed in areas where electricity prices are relatively high, and also when generation is higher than consumption.
These regions are Irkutsk (Sverdlovsk) and Murmansk (Sverdlovsk), the Republic of Khakassia and the Krasnoyarsk Territory. There is enough electricity to supply the demand and allow more people to be connected without overburdening distribution lines.
Researchers believe mining farms are an economically feasible way to use Russia’s surplus generating capacity. Additionally, cryptocurrency mining could expand IT infrastructure deployment in Russia and raise budget receipts to its regions. It can also create new jobs.
The regulation of bitcoin mining in Russia, one of crypto-related activity, is currently in progress. As of January 20, 222, Russia had close to 5% control of global monthly hashrate. This was according to the Cambridge Institute for Alternative Finance. Moscow’s officials agree that mining must be recognised as an industrial enterprise and be subject to taxation accordingly. The U.S. has placed sanctions on the Russian mining industry in response to the conflict in Ukraine.
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