Russia crypto-friendly country. Russia is predicted to dominate the Global Bitcoin Hashrate in the near future. This statement was made by a crypto mining company from Moscow, Intelion Data Systems after the share of Bitcoin hashrate in the country jumped to around 18 percent.
This number shot up sharply when compared to the share of Russia’s Bitcoin hashrate at the beginning of last year, at which time the Bitcoin hashrate of the country led by Vladimir Putin was only pegged at around 4.7 percent.
This surge occurred after a number of investors began to tighten rules on digital assets and cryptocurrencies, this pressure then prompted investors to migrate to countries that are friendly to crypto assets, one of which is Russia.
According to Specialists at Intelion, the electricity rates and crypto taxes applied by the Russian government are relatively lower when compared to other countries. This reason then attracted the interest of the miners. Until they are willing to move their business and operations from other countries, such as the US, China, and Kazakhstan to crypto-friendly countries like Russia.
Russia’s openness to crypto assets began to smell since a number of countries began to tighten economic sanctions against Moscow, in response to Putin’s invasion of Ukraine.
Because sanctions have hindered Russia from carrying out various transaction activities on the international stage, President Putin has slowly begun to give signals to his country to use digital assets as a means of transaction.
Although the Russian public is not allowed to use digital assets as a means of payment for domestic goods and services. However, during the invasion, investors were allowed to use crypto assets as a means of cross-border transactions. This policy then made the number of Bitcoin miners in Russia increase sharply over the last few months.
Even as a result of the booming number of Bitcoin miners in Russia, the largest mining operator in Moscow, Bitriver noted that the amount of power spent during the creation of crypto coins from January to March 2023 swelled to 1 gigawatt (GW).
Russia crypto-friendly country. This number has increased 20 times when compared to the use of electricity needs over the last five years, to be precise, from 2017 to 2022.