Large-scale bitcoin mining has been a preserve of China for a couple of years owing to low power tariffs. But with the countries clamping down on cryptocurrency businesses, Russia seems to be replacing China as a crypto mining giant.
Investors in Russia are even acquiring power stations to mine this cryptocurrency. One such Russian businessman is Aleksey Kolesnik who recently purchased two electric power stations in Udmurtia and Perm Region ( east of Moscow) to be a data center for mining operations.
Kolesnik asserts that the future progress of the crypto project is reliant on the Russian government hint of legislating and approval of virtual currency use.
Following President Vladimir’s multinational cryptocurrency creation Putin proposal to EEU and BRICS members, Russian finance ministry has recently drafted a bill to legalize cryptocurrencies trade on organized trading platforms.
Russia has tried to control the cryptocurrency industry for the past few years but now after 12 months of trying to catch up with the bitcoin phenomenon. It seems that the government is now trying to loosen up things for traders and miners albeit regulations.
With the increase in trade cryptocurrency users, the cryptocurrency continues to be more volatile. Miners and traders in Russia understand what to anticipate, but with the continuous demand increase in the country, we are yet to see huge mining operations pop up.