In terms of Bitcoin mining capacity, Russia ranks second, but the absence of a legal framework and the increasing prospect of sanctions endanger the country’s position.
According to reports, the Russian Federation has become the second-largest Bitcoin mining center in the globe.
China’s electricity scarcity last year has been attributed to Russia’s growing market share. China is a significant competitor in this industry.
Russia is in a position to take second place as a result of Kazakhstan’s restriction on mining activities. According to a report by the Russian newspaper Kommersant, BitRiver drew attention to Russia’s recent accomplishment in the BTC mining industry.
According to reports, the statistics are based on data collected between January and March of 2023. The capacity places the nation in second position, behind the United States, which has a capacity of 3 to 4 GW.
Canada (400 MW), Malaysia (300 MW), Gulf states (700 MW), and Kazakhstan (100 MW) are a few additional powerhouses in this sector.
The report by Kommersant also attributes Russia’s recent success to the United States’ diminishing market share due to the recent assault on miners.
The report emphasized the absence of regulatory clarity in the United States and suggested that the current environment may result in a new redistribution of the Bitcoin mining market.
However, the lack of a legal framework for miners and the expanding threat of sanctions may make it difficult for Russian miners to maintain their market share.
According to data from the Cambridge Centre for Alternative Finance, Russia led the United States and Kazakhstan in terms of Bitcoin mining capacity in December 2021. The previous year, China dominated the Bitcoin hash rate market with a colossal 65 percent share.
