Moscow, Karelia, Irkutsk — Study Lists Most Popular Crypto Mining Destinations in Russia – Mining Bitcoin News

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Moscow, Karelia, Irkutsk — Study Lists Most Popular Crypto Mining Destinations in Russia – Mining Bitcoin News
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Russia could be an important player in the cryptocurrency mining sector, and experts in the field have identified the most attractive coin minting areas in the country in their research. The capital, Moscow, is one of the most popular mining destinations, along with the place that offers the cheapest electricity.

Electricity, logistics costs determine Russian miners’ choice of crypto farm location

Russia has everything it takes to be a leader in crypto mining, including low-cost electricity, excess generation capacity, and well-developed energy infrastructure in many regions. This is one of the conclusions of a study conducted by mining equipment importer Intelion Data Systems cited by RBC Crypto.

The company’s researchers say there has been an increase in interest in setting up new digital currency extraction data centers in the vast country. CEO Timofey Semyonov said that a business’s priority is to choose the right location for its facilities, which is crucial for the effectiveness of capital investment. He pointed out that electricity bills and sufficient power generation are the main criteria.

Intelion Data Systems found that the most popular places to host mining data centers in 2021 are the capital Moscow and Moscow Oblast, Karelia, Buryatia, as well as Sverdlovsk, Murmansk and Irkutsk Region, Krasnoyarsk Territory and Republic of Khakassia. In the first four regions, electricity demand is higher than local generation.

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The choice of industrial-scale crypto miners is primarily influenced by the cost of electricity, and in the case of Moscow and neighboring regions, by the logistical advantages. Sometimes the latter takes precedence over energy infrastructure, experts noted in the press release. They argue that data centers should be built in areas where not only is electricity prices relatively low, but also generates more electricity than it consumes.

The regions where the two parameters match are Irkutsk, Sverdlovsk and Murmansk, Khakassia and Krasnoyarsk Krai. Not only will the generation capacity there be sufficient to meet current demand, but it will also be possible to connect more consumers without overloading the distribution network.

The authors of the study believe that mines could offer an economically viable solution to harnessing Russia’s excess power generation capacity. Cryptocurrency mining can also expand the deployment of the Russian Federation’s IT infrastructure, increasing its region’s budget revenue and creating new jobs.

Bitcoin mining is one of the crypto-related activities still awaiting regulation in Russia, controlling nearly 5% of the monthly global hash rate as of January 2022, according to estimates by the Cambridge Institute for Alternative Finance. Most officials in Moscow agree that mining should be considered an industrial activity and taxed accordingly. Meanwhile, the Russian mining industry has been hit by sanctions imposed by the United States over the war in Ukraine.

tags in this story

bitcoin, crypto, crypto farm, crypto miner, crypto mining, cryptocurrency, cryptocurrency, electricity, expert, generation, infrastructure, miner, mining, mining farm, power, region, research, researchers, russia, russian, research

Do you think Russia has what it takes to become a leading cryptocurrency mining destination? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

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