Russia Could Challenge US Dominance in Bitcoin Mining
As per a recent report by Russian news publication Kommersant, Russia has emerged as the second-largest Bitcoin miner globally, while the US remains in the top spot.
The report suggests that this rise of Russia to the second spot is due to regulatory uncertainty in the US, which might bring changes to the rankings soon.
However, Russia, like the US, also faces regulatory ambiguity in the crypto and mining industry. The report highlights that Russia lacks legal frameworks for miners, and risks of sanctions are growing both for Russian players and their foreign counterparts.
The ranking is based on the power consumption involved in crypto mining operations, and data from Bitriver, the largest mining provider in Russia, is cited.
The CEO of Bitriver, Igor Runets, states that the US mining industry is struggling with issues like increased electricity prices, reduced profitability, and over-leveraged mining companies.
In contrast, the Biden administration has proposed taxes equal to 30% of electricity costs for digital asset mining operations, which will have staggered implementation over three years, starting in 2024.
Currently, Bitcoin is trading at $27,353, which is down 1.1% in the last 24 hours.