Bitcoin News: Russia Is Becoming A Hive Of Bitcoin Mining Activity

Russia Is Becoming A Hive Of Bitcoin Mining Activity

Go back five years and it was possible to mine Bitcoin with nothing more than a personal computer. Nowadays, however, huge amounts of processing power are required in line with the increased difficulty and this has led to individuals and companies seeking ways to reduce the cost associated with supporting the processing power required – namely, electricity. Large-scale mining operations have opened in various regions globally, with the location of said mining operations generally dictated by a couple of things – first, the price of electricity in the location in question and second, the regulatory framework in the region.

Previously, China was a hotbed of mining operations based on the fact that it was possible to buy incredibly cheap electricity in the more rural regions of the nation. Since September, however, when the Chinese government cracked down on the Cryptocurrency space as a whole, said operations are seeking second homes.

And the latest news is that Russia is happy to provide this home.

The Russian Association of Blockchain and Cryptocurrency (RACIB) just reported that it has received 40 applications from companies and individuals from European Union countries and China to mine Bitcoin in the region.

Here's what Yuri Pripachkin, President of the above mentioned RACIB, had to say:

"In Russia, the number of such factories is already in the hundreds, and our country has energy resources that can be sold to miners effectively."

Adding:

"In fact, this is a new market for energy companies, and it is important to prepare a legislative basis, and possible preferential taxation for such foreign investors."

Reports of the so-called crypto city that will offer surplus electricity from nuclear power stations have buoyed sentiment in the region over the last six months and this is just the latest development in a string of Cryptocurrency friendly actions out of Russia across the period.