Russia Prepares for Intense Miner Migration

Serious energy problems that arise while mining cryptocurrencies are still an important topic of discussion.. After the news that Canada will offer a new opportunity to miners who are considering emigrating due to the bans in China and South Korea and rising prices, Russia’s move on the issue has now started to become clear.

Russia’s East and West It was stated that the preparations for the migration of crypto money miners from. Although a clear decision has not been made at the moment, the crypto community in Russia, Russian or foreign Blockchain experts and many others agree that the Russian government will embrace Bitcoin mining.

Russians Are Very Ambitious

Russians are very confident in Bitcoin mining. When we look at the popular Bitcoin forums, one common message catches our attention lately: “Hello Chinese miners.. We invite you to Russia. The kWh of electricity is only $0.05.”

The Russians have already started to prepare really high-end centers for the mining business.. So much so that the electrical connections of the centers are complete, internet cables are pulled into 5 thousand square metersbuildings accompanied by serious coolers.. Security cameras and alarm systems installed. Russians, who especially target the Chinese market, are also closely following the problems in other places.

In the news in recent days, it was shared that many mining companies applied to the government in order to do this job in Russia and that the majority of them were Chinese miners.. Meanwhile, the Russian Cryptocurrency and Blockchain Association invited senior executives from China and Slovakia to Russia and exchanged ideas with these people about what should be done to bring in more miners.

Divided into 11 different time zones, being in a very rich location in terms of natural resources and cheap energy prices, they are a perfect fit for mining.. The Russian government is also doing its best to take advantage of this situation and attract trillions of dollars of investment to attract mining companies to Russia.. At the same time, it is trying to set the right rules for the continuation of this market.

Russia Could Be a Great Mining Center

The Russian government is very pleased with all the developments related to mining and crypto money around the world. continues to follow very closely. Russian officials, who collect and evaluate news from all over the world, are in close contact with companies in China, Belgium and the USA.. Contrary to its nationalist stance on other issues, Russia; It has bent this policy a bit in order to gain an advantage over its competitors in the field of crypto money.

The fact that there is no clear view on this issue in the world and that there are countries that advocate many different opinions about crypto money strengthens the hand of Russia.

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Before the G20 summit to be held in March, France and Germany will prepare a joint bill and will ask for increased supervision of cryptocurrencies. The United States will also demand regulation on anonymous cryptocurrency accounts in Switzerland, and the People’s Republic of China will demand this event be regulated, saying that mining seriously damages the country’s climatic conditions and energy reserves. At this point, its hand is very strong because the country has both the authoritarian power and the legal mind to make these arrangements; as well as having energy resources and cold weather, which are a boon for mining.

While Russia is planning to start working on the regulation of cryptocurrencies in the summer, Russian authorities received help from abroad. One of the world’s leading Bitcoin miners invited to 15 different countriesRussia; While getting information on how cryptocurrencies are mined, reports were also requested from each miner with different approaches on how this event could be regulated.. At the same time, a delegation from China and Slovakia was brought to find out how the miners should be approached and their ideas were exchanged.

One of the important names of Russia in the Economy Sergei Repetyuk said in a statement on the subject:

“I see no harm in these miners starting to work in Russia after China showed the miners the door for various reasons.. If we do this job according to certain rules, we will not have any problems because we are a suitable place for this job.. Even during peak energy use, 40% of our power supplies remain idle. That’s why I don’t think there will be any problems with mining.”

These views of Repetyuk were also supported by Evgeniy Itsakov, an economics professor at a university in Russia.. Speaking on the subject, Itsakov said:

“The energy in the country is quite cheap and the demand is not very high.. We have a very strong infrastructure in this regard.. Cryptocurrency mining is an industry in itself and will continue to exist until a more effective and useful solution is found.. However, the rules in the market must be well defined, and it is pleasing to see that it works.”

Can Russia Change the Game With This Move?

It is a well-known fact that Bitcoin mining consumes a significant amount of energy.. Bitcoin alone consumed a full 40 TWh of electricity during 2017. At the same time, the amount of energy consumed for Ethereum transfers only for December is 10 TWh. Currently, 80% of the mining business in the worldis done by companies based in China. The Chinese government, which is afraid of not being able to provide energy for the people in the places where there are big mining centers, is having problems with the miners for this reason.. The two local provinces in the country, Inner Mongolia and Xinjiang – Uygur, have made a serious cut in the energy supplied to the miners, with the decision of the Chinese government.

The Russian government has really nothing to do with energy. have no reservations or anything to fear. Even during the hours when energy use in the country is at its peak; 40% of Russian energy resources consisting of coal, nuclear power and hydroelectric power plants are idle. While the total capacity is described as 236, this; much more than the country needs. Russian authorities have already accounted for this work.. If an annual resource of 100 GW is transferred to cryptocurrency mining, the money entering the Russian economy from this market to be created is exactly 30 billion dollars or 1.7 trillion rubles will be. While serious centers are being created for miners, especially in the east of the country, Putin’s representative in that region, Yuriy Trutnev, is dealing with this issue.

Recently, it is stated that immigration in Asia has started slowly.. For miners who choose cold weather and cheap energy prices as the two most basic factors in determining new locations, Russia’s alternatives are Canada and Iceland.. In particular, the news that Canada’s Quebec city was about to become a new center for miners had a great deal of coverage in the press.

Not only mining, but also other issues related to cryptocurrencies are frequently discussed in the country.. In particular, while the issue of legalization of cryptocurrencies occupies the agenda of the parliament, the Russian government is not as warm to a Russian-based crypto currency as Venezuelan president Nicolas Maduro

The central bank is a national. While insisting on the point of crypto money, it is against the entry of coin-based companies into traditional exchanges.. The Russian government, on the other hand, is not expected to express its true opinion on these issues clearly until after the elections in March.. However, it would not be wrong to say that the opinions on mining are positive.

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