After multiplying several times over the past few years, Russian revenue from bitcoin minting has declined significantly since this spring. The findings come from new research that also establishes that the sector has grown in both the ups and downs of the crypto market.
$1.4 Billion Revenue Expected From Russian Bitcoin Mining This Year As Business Shrinks
Bitcoin mining revenue in Russia increased 18-fold between 2017 and 2021, according to a new report from computing hardware distributor Intelion Data Systems, cited by RBC Crypto. From 7 billion rubles in the first year (less than $114 million at current exchange rates) to 128 billion rubles (more than $2 billion) in the last year.
According to the study, over the past eight months, bitcoin mining revenue has dropped to just over 57 billion rubles ($929 million), but 2022 is off to a pretty confident start. Over 10 years of observation.
Russia dominated the monthly 4.66%. global hash rate As of January 2022, its share is shrinking as Russian miners were later attacked by the US sanctions imposed over the war in Ukraine. Taking these indicators into account, the projected annual turnover of the segment this year is approximately 85.59 billion rubles (less than $1.39 billion).
Nevertheless, mining activity in Russia over the past five years as a whole has produced important results in terms of growth dynamics, analysts say. Since 2017, when the popularity of this type of business began to grow exponentially, revenues in this sector have grown rapidly for much of that period, regardless of the ups and downs of the crypto market.
According to Intelion Data Systems CEO Timofey Semenov, the expansion potential of cryptocurrency mining in the Russian Federation is huge and could have a significant impact on the Russian economy. It also helps the vast country to deploy its own IT infrastructure and attract investment to energy-rich regions.
Another study previously conducted by Semenov’s company clearly Data centers that create digital currency now use 20 times more electricity than they did five years ago. The total energy consumption of this sector has reached that of agriculture, the authors said in August.
Do you think the Russian mining industry can resume growth as sanctions tighten? Share your thoughts on the matter in the comments section below.
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