Is cryptomining becoming a new battleground for the US and Russia?
Cryptocurrency mining remained one of those complicated and energy-intensive operations that only got fatter with time. This gives another reason for many countries to submit to the regulations. Despite being highly electricity producing, crypto mining is still among profitable industries. This is probably the reason why countries such as the USA and Russia after mining.
Russia was recently reported to become the second largest crypto mining country in the world. The Moscow Times reported citing the country’s largest bitcoin (BTC) miner, Bitriver.
As reported, Russia has achieved a production capacity of up to 1 gigawatt or 1000 megawatts during the first quarter of 2023. On the other hand, the United States still holds the first position as the largest cryptomining country. Currently, it has a mining capacity of around 3 to 4 gigawatts, over a similar time frame.
Cryptocurrencies are mined after using a lot of hash rate, or computing power to solve tough mathematical calculations. This requires a lot of processing power from a number of processors. Ultimately, it consumes a large amount of electricity and releases enormous heat leading to major concerns in and around environmental damage and related hazards.
Before Russia, the Central Asian country of Kazakhstan held the title of the second largest crypto miner. However, due to a crisis in the normal power supply, the country continued to put restrictions on crypto mining last year. This caused it to slip from the position to 9th place on the list.
Russia and Kazakhstan before they were able to take the lead after China went on to place an outright ban on cryptocurrencies and crypto-related operations. This includes cryptocurrency payments, crypto companies such as exchanges, and even crypto mining.
As CNBC reported, China was the largest crypto mining country in the world. It accounted for up to 75% of the total hash rate or computing power of Bitcoin mining.
But at the moment, China couldn’t even make it to the top ten crypto miners.
Russia had not banned the use of cryptocurrencies, but the use of the assets for general buying and selling of goods is restricted in the region. The country had taken advantage of cryptocurrencies after the Western countries imposed heavy sanctions following Russia’s invasion of Ukraine.
The European Union has reportedly placed a complete ban on the operations of crypto transactions, including addresses held by Russian users. This ban on Russian residents was the eighth time the sanction was imposed within a year.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
