The Bitcoin mining industry has benefited from the Russia-Ukraine war and Western sanctions against Russia, as mining chain manufacturers do more business in Russia than anywhere else in the world.
Russia has long been an important hub for bitcoin mining, especially after China banned it in 2021.
Despite Western sanctions and the risk of setting up new companies in Russia, conditions are ripe for improving mining economies, according to blockchain executives at CoinDesk’s Consensus 2023 conference.
To make Russia more attractive, regulatory scrutiny and rising taxes in the United States and other countries have made its options less attractive.
And for Cryptocurrency Mining Group, Russia will be the only country that significantly accelerates the growth of the hash rate, or the computational power delivered to the blockchain.
And the company stated in a report that Russia had to divert its energy flow from the European Union in 2022, which made it have a large available surplus capacity, allowing bitcoin mining to be its new treasure.
With cheap energy being a major contributor to mining profits, the region looks poised to develop and attract more business.
Meanwhile, manufacturers Bitmain and MicroBT are active and participating in the Russian market, and Bitmain has added the Moscow office to its website, according to CoinDesk.
Both companies, according to the report, provide support services to local miners in Russia.
Meanwhile, it is likely that wartime sanctions have already provided a boost to Russia’s cryptocurrency industry.
Bitcoin mining, on the other hand, provides a different source of revenue for energy producers who are held back by a weak economy, and the sector even facilitates the exchange of rubles for bitcoin, which is universally accepted, unlike Russia’s local currency.
