Crypto Mining Surge: Is Russia the Next Crypto Mining Hub

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Crypto Mining Surge: Is Russia the Next Crypto Mining Hub
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Crypto mining activities come with a challenge, it is a power-consuming task, and the problem miners are having with local authorities where crypto assets and facilities are located is energy consumption issues.

Many nations are cracking down on mining activities in their domain to save their energy generation and consumption. The latest to join the bandwagon is Inner Mongolia in China, which accounts for over 8% of total global crypto mining activities but is ready to stop mining because of its environmental problems on the province coal and fossil power generating system.

However, the surge in mining activities in some parts of Russia may attract major miners displaced in China to move their rigs to Russia to continue their mining business.

China’s Inner Mongolia Ban on Crypto Mining

In early March, crypto mining suffered a setback as a mining province in China banned Bitcoin mining in the region.

China’s Inner Mongolia is a huge energy-consuming province that accounts for more than 8% of the total Bitcoin mining activities, according to data from a reliable source.

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Cheap tariffs were responsible for miners’ love for China, reliance on fossil and coal sources for generating electricity raises environmental concerns associated with emissions that characterize the use of coal and fossil sources for generating power.

The Inner Mongolia authorities will force all mining centers, new and old ones must close by April to achieve the energy-saving target. It is in line with China to attain Carbon neutrality by 2060 and cut greenhouse emissions by 2030.

Russia Offers a Comfortable Alternative to Crypto Mining

High demands for Bitcoins and other digital currencies make mining very attractive to miners in Russia, thanks to the relatively cheap power and the fact that the government is calm about mining activities in the country so far.

According to reports, more than 7,300 crypto mining rigs were exported from Abkhazia into Russia just in February because the de-facto republic could not manage the massive power consumption of the mining rigs in its territory, across the land border, Russia welcomed the mining rigs with open arms.

This gesture will not go unnoticed by miners globally, who are thinking of the next stop to cite or relocate their mining activities.

Since other regions in Russia are not against mining activities and the fact that 7,300 mining rigs were imported in just a month, it will not surprise anyone if miners from Inner Mongolia, where crypto mining is no longer acceptable, relocate their facilities to Russia to resume their businesses.