According to reports, Russia is currently the second-largest Bitcoin (BTC) miner globally, with the United States still holding the top spot. According to a recent article by the Russian news outlet Kommersant, regulatory uncertainty in the US has caused Russia to move up to second place for the first time, which may soon cause the rankings to change.
“Russia is now the second-largest cryptocurrency mining nation in the world. The leading nation is still the United States. However, the unpredictability of the cryptocurrency regulations there could lead to a fresh market redistribution.
Similarly to the US, Russia likewise experiences regulatory uncertainties in the cryptocurrency and mining sectors, according to Kommersant. Experts stress that the legal framework for miners has not yet been formed in Russia as a whole. Additionally, the risks associated with sanctions are rising in respect to both Russian players and their foreign rivals.
According to data from Bitriver, the biggest mining service in Russia, the ranking is based on the amount of power used in cryptocurrency mining operations. Igor Runets, CEO of Bitriver, claims that the American mining sector is experiencing challenges due to overleveraged mining companies, declining profitability, rising electricity bills, and tax issues.
Additionally, because American miners bought the great majority of the equipment with credit, many overly indebted businesses are in the midst of filing for bankruptcy or have already done so.
The Biden Administration has suggested levies that would be equal to 30% of the price of the electricity utilized in operations for mining digital assets. If authorized, the tax would be implemented in three years at a rate of 10% in year one, 20% in year two, and 30% in year three, starting in 2024.
At the time of writing, the price of one bitcoin is $27,353, down 1.1% from the previous day.
