Public Association Wants To Attract Bitcoin Miners To Russia
Russian public association focused on the representation of the interests cryptocurrency industry has unveiled a new project to attract Bitcoin miners to Russia.
The project, which is headed by the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain, reveals that the Russian Federation’s energy production could be attractive to bitcoin mining operations.
According to the report, excess electricity could amount to more than 50% of the capacity of power plants depending on where it is located. In addition to consuming power that would otherwise be wasted, Bitcoin miners could also benefit from free cooling due to the country’s cold weather, allowing them to access higher energy efficiency.
The statement stated that Russia’s vast territory makes it possible to deploy extensive mining operations. RACIB also shared the news that it closely collaborates with the executive authorities of Russia as well as state and regional corporations.
Since Chinese authorities declared a wider Bitcoin crackdown in the year 2018, miners have fled the country. Some mining operations have fled to Kazakhstan. This country could soon be a hub for bitcoin mining. Canaan , a leading manufacturer of bitcoin mining equipment, announced last month it would begin mining BTC and establish new operations in Kazakhstan.
RACIB wants a piece of the pie and is targeting bitcoin miners who leave China to find a new home with Russia.
The announcement stated that the Consortium of the largest Chinese mining companies is currently the largest foreign partner to RASIB in this Project. They together hold more than 25% of global hashrate for the major cryptocurrencies, including Bitcoin.
The project claims it aims to increase Russia’s share of the global market for digital economy infrastructure by transferring a portion of the computing capacity to Russian territory. It stated that the main goal is to further decentralize bitcoin mining.
While there are many points of failure that can be addressed, Russia’s political structure could undermine the project’s goal. In July 2020, a referendum was approved that extended President Vladimir Putin’s eligibility for re-election and maintained his control over the power.
Russia may be preparing for an era of “adaptive authoritarianism” after the country’s recent totalitarian protests. It is not clear what the future holds for bitcoin miners in Russia regarding operational stability or political assurances.