According to recent reports, Russia is now the second-largest country in the world for Bitcoin and cryptocurrency mining, with the United States continuing to hold the top spot.
According to Kommersant, BitRiver, a company that provides colocation services for cryptocurrency mining operations, reported that the Russian Federation achieved a new milestone in the first quarter of the year by reaching the second position globally regarding mining power, with 1 gigawatt (GW) involved.
The United States’ mining capacity of 3-4 gigawatts (GW) places it at the top of the list, followed by countries in the Gulf region with 700 megawatts (MW), Canada with 400 MW, Malaysia with 300 MW, Argentina with 135 MW, Iceland with 120 MW, Paraguay with 100-125 MW, Kazakhstan with 100 MW, and Ireland with 90 MW.
According to data from The Cambridge Center for Alternative Finance‘s report, Russia was ranked third in cryptocurrency mining after 2021, surpassing both the United States and Kazakhstan in bitcoin mining capacity. In January 2022, the nation held the fifth position.
Bitcoin mining is the method by which Bitcoin network transactions are digitally validated and added to the blockchain ledger. Verifying blocks of transactions that have been updated on a decentralized blockchain ledger requires solving complex cryptographic hash riddles.
BitRiver’s experts attribute the upward trend in mining capacity to the restrictions imposed on mining activities in Kazakhstan and China due to electricity shortages.
President Kassym-Jomart Tokayev signed a statute on digital assets on February 6, 2023, which regulates cryptocurrency mining in Kazakhstan. The law’s primary provisions will go into effect on April 1, 2023.
According to the report, the new legislation will enable mining industry participants to plan their operational and financial activities, execute significant projects, attract investments, and advance related sectors of the Russian economy, including the electric power and information technology sectors.
