According to CoinDesk, hardware manufacturers have been doing more business in Russia. The industry is thriving despite sanctions and Russia’s invasion. According to CoDesk hardware manufacturers are doing more business with Russia, and more mining machines are flowing into the country than anywhere in the world.
Russia is a major hub for bitcoin mining thanks to its cold climate and cheap energy. After China banned it in 2020, Russia increased their market share.
Blockchain executives at CoinDesk’s Consensus Festival 2023 said that, despite the risks, there are still many reasons to invest in Russia. The conditions and economics of mining have improved, they added.
In addition, the increased regulatory scrutiny in the US as well as other countries has made it less attractive to choose an older option.
According to the Cryptofirm Cryptocurrency Mine Group Russia is the only country that will significantly accelerate the growth of hashrate, or the amount of computational power delivered to the blockchain.
The company stated in a recent report that ‘Russia will have to divert their energy from the EU by 2022, and with a large surplus capacity left, Bitcoin mining could be its new customer.’ Cheap energy is a major factor in mining profits. The region appears to be poised to grow and attract new business.
CoinDesk was told by sources that Bitmain and MicroBT were active in the Russian market. Bitmain lists a Moscow office as part of its website. According to the report, both companies offer repair services to local miners in Russia.
It’s also possible that the wartime sanctions may have actually benefited the crypto industry.
Bitcoin mining is a new source of income for power producers who are struggling to make ends meet due to the weakening economy. The sector also facilitates the exchange of rubles into bitcoins, which are accepted worldwide, unlike Russia’s own currency.