After the Chinese authorities introduced a complete ban on cryptocurrency transactions in September by equating them to illegal financial activity, local cryptocurrency miners either dropped off the radar or moved to other countries in order to continue with their business.
The United States subsequently became the leader in terms of Bitcoin (BTC) mining volumes with a share of 35.4%. Modest Kazakhstan is currently in second place (18.1%), and the bronze spot was secured by Russia (11.23%).
It’s not surprising because Russia has several advantages, meaning that conducting crypto business in the country is extremely lucrative for almost any miner. There is cheap electricity and, at least for now, friendly legislative regulation. According to analysts in spring 2021, the price of electricity in Russia was $0.06 per kilowatt-hour for household use and $0.08 for business. To compare, in France, a kWh of electricity costs $0.2 for householders and $0.14 for business, which is four times more expensive than in Russia. Other estimates suggest that the difference in the cost of electricity when mining Bitcoin in Russia and Europe is actually closer to 7.5 times.
Many private crypto farms and mining companies have emerged in the country. Of course, as in the rest of the world, many Russian miners did not survive the “crypto winter” in 2018, when Bitcoin’s price dropped to almost $3,500, making crypto mining unprofitable. But COVID-19 has forced many to look for additional income and search for alternative ways to replenish their capital.
Favorable conditions for mining even…