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Russia Could Challenge US Dominance in Bitcoin Mining

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.

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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.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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