Russia has caught up with the U.S. in the growth rate of cryptocurrency mining

Russia has caught up with the U.S. in the growth rate of cryptocurrency mining

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Author: Robert Strickland (crypto-journalist)
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Russia has caught up with the U.S. in the growth rate of cryptocurrency mining
BitRiver estimates that Russia has caught up with the U.S. in the growth rate of cryptocurrency mining
BitRiver estimates that the Russian mining industry is catching up with the U.S. at an accelerated pace due to the increase in capacity and demand from China

By the end of the first half of 2023, Russia has caught up with the United States in terms of the growth rate of the mining industry, Igor Runets, CEO and founder of BitRiver. According to him, this is due to the exponential development of cryptocurrency mining in Russia and a decrease in activity in the United States. Overall, the increased demand for digital resources significantly stimulates the expansion of the crypto-mining market in both the U.S. and Russia, and the global cryptocurrency-mining market will continue to grow at an outpacing rate in the coming years.

"Even last year, the U.S. mining market was showing significantly higher growth rates than the Russian market. Now we are recording at least equalization of these indicators and a huge increase in demand for mining in Russia," comments Runets. - There is no doubt that now we are at a turning point - perhaps by the end of 2023 we can talk about outpacing the growth rate of the U.S. market.

Mining, staff, and laws. What is the scale of the Russian cryptocurrency market?

Now, according to BitRiver estimates, the amount of power consumed by miners in the U.S. has exceeded 4 GW, in Russia it is about 2 GW (including the volume of industrial mining, which, according to the company's estimates, exceeded 1.2 GW). The Russian industry is catching up with the U.S. industry at an accelerated pace, BitRiver noted.

Since mid-April 2023, the demand for mining services in Russia by large customers from China has been growing noticeably. In addition, an increase in demand for hosting services for cryptocurrency mining equipment since the beginning of the year has been seen from large businesses from Russia, the CIS, the Arab world, China, India, and other friendly countries.

"Chinese miners are starting to choose more favorable jurisdictions for business. This is not the least influenced by the geo-economic confrontation between Washington and Beijing, harsh statements of the U.S. authorities in relation to key participants of the crypto market, and incorrect assessments of the leader of China by the U.S. leader. As a result, the key jurisdiction for Chinese miners placing new orders becomes Russia, not the U.S.," explains Igor Runets. Russia has a power surplus economy, but the implementation of any large-scale project, particularly the construction of data centers, takes time.

BitRiver has nine operating data centers with a total capacity of over 300 MW and is building six new facilities with a total capacity of 900 MW. In February, the company announced the construction of a data processing center (DPC) for mining at a cost of 900 million rubles in Buryatia, the launch of which is scheduled for this year.

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