Russia Emerges as the Second Largest Bitcoin Mining Nation
According to unofficial sources, Russia has become the second largest nation in the world in terms of Bitcoin mining. The country has made significant investments in hardware and recently completed a large mining farm in Ethiopia. This move is part of Russia’s plan to become a global mining hub and expand its presence in the cryptocurrency sector. Additionally, there have been regulatory advancements that aim to liberalize Bitcoin, mining, and exports. Russian officials are even considering treating Bitcoin as a rare commodity, similar to natural gas. These developments could pave the way for the legalization of digital currencies in Russia and potentially influence other nations.
Russia’s Progress in Bitcoin Mining
Russia has been actively investing in hardware to establish itself as a major player in Bitcoin mining. Recently, BitCluster, a Russian supplier, completed the construction of a massive 120 MW data center in Ethiopia. The facility meets advanced requirements for mining devices and benefits from uninterrupted power supply. Most of the energy used comes from Africa’s largest hydroelectric project, the Grand Thiotian Renaissance Dam. With this new mining farm, Russia becomes the second global superpower in Bitcoin mining, surpassing China, Kazakhstan, and Canada.
Regulatory Advancements
Russia is also making progress on the regulatory front to liberalize Bitcoin and treat it as a valuable asset. The Ministry of Finance has expressed its intention to consider cryptocurrency as an export product similar to oil and gas. While the Russian Central Bank has historically been negative towards Bitcoin, it has indicated that it will not hinder ongoing work. The legalization of digital currencies could come with a new draft law that provides clarity and security for companies and individuals involved in mining operations.
Total Network Hashrate Growth
As Russia aims to become a global leader in cryptocurrency mining, the Bitcoin network is preparing for its fourth halving. This event, scheduled for April, will reduce mining rewards by 50%, limiting the supply of new BTC in the market. However, Russia and other major players are pushing to obtain a larger share of computational power. The total hashrate of the Bitcoin network recently reached a new all-time high of 597 EH/s. With increased competition and centralization towards mining pools, it is becoming more challenging to mine Bitcoin. Nonetheless, the growth of hashrate has been supported by the rising price of BTC and increased transaction fees.
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