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Russian Bitcoin mining may surpass US in 2 years

Russian Bitcoin mining may surpass US in 2 years

GrafaGrafa2024/10/05 05:30
By:Liezl Gambe

The Russian Bitcoin (CRYPTO:BTC) mining industry could overtake the U.S. within two to three years, according to Igor Runets, CEO of Bitriver, one of the major data center providers for sustainable mining.

Runets attributed this potential growth to Russia's recently approved mining law, which offers various advantages to the industry.

He emphasised that the new regulations encourage partnerships between oil and gas companies and Bitcoin miners, particularly through the use of petroleum gas for mining.

Runets highlighted that the growth rates of the Russian mining sector have already caught up with the U.S.

“Last year, we caught up with the U.S. in terms of growth rates, and the gap in absolute values is narrowing,” Runets told local media.

He also noted that the Russian mining industry currently consumes over 2.5 gigawatts (GW) of electricity, compared to the U.S. at over 7 GW.

However, with Russia’s access to its own energy generation and the use of petroleum gas, Runets believes Russian miners could become global leaders in the near future.

Runets further commented on how the inclusion of cryptocurrency mining in the political agendas of U.S. presidential candidates, Donald Trump and Kamala Harris, demonstrates a concern over maintaining the U.S.'s lead in this industry.

He suggested that an "international hash war" could be on the horizon, with countries competing to dominate the Bitcoin mining sector.

In September, Russian President Vladimir Putin acknowledged the importance of the cryptocurrency mining industry, particularly in relation to Siberia’s energy surplus.

However, he also emphasised that while mining growth is important, developing infrastructure and ensuring adequate electricity for planned facilities remains a critical priority for the country.

At the time of reporting, the Bitcoin price was $62,008.53.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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