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Cryptocurrency mining remained one of the complicated and energy extensive operations which only thickened with time. This makes another reason for many countries to put under the regulations. Despite being highly electricity-monger, crypto mining still is among profitable industries. This is likely to be the reason why countries like the United States and Russia after the mining operations.
Russia recently was reported to become the second-largest crypto-mining country in the world. The Moscow Times reported by citing the country’s biggest bitcoin (BTC) miner, Bitriver.
As reported, Russia has achieved generating capacity of up to 1 gigawatt or 1000 megawatts during the first quarter of 2023. On the other hand, the United States still holds the first position as the biggest crypto miner country. Currently, it has a mining capacity of around 3 to 4 gigawatts, during a similar timeframe.
Cryptocurrencies get mined after using a lot of hash rate, or computing power to solve tough mathematical calculations. This takes a lot of processing power from a number of processors. Ultimately it consumes a heavy amount of electricity and releases enormous heat that leads to major concerns in and around environmental damage and related hazards.
Earlier than Russia, the Central Asian country Kazakhstan was holding the title of the second biggest crypto miner. However, due to a crunch in its normal electricity supply, the country went on to put restrictions on crypto-mining operations last year. This made it slip from its position to the 9th spot on the list.
Russia and Kazakhstan before it was able to take the leading spot after China went on to put an outright ban on cryptocurrencies and crypto-related operations. This includes cryptocurrency payments, crypto firms like exchanges, and even crypto mining.
As CNBC reported, China was the biggest crypto-mining country in the world. It was accounting for up to 75% of the total hash rate or computing power of Bitcoin mining.
But, currently, China could not even make it to the top ten crypto miners.
Russia had not put a ban on the use of cryptocurrencies, but using the assets for general buying and selling goods is restricted in the region. The country had taken advantage of cryptocurrencies after the Western countries put heavy sanctions in the aftermath of Russia’s invasion of Ukraine.
The European Union reportedly put a complete ban on the operations of crypto transactions including addresses held by Russian users. This ban on Russian residents was the eighth time in which the sanction was imposed during a single year.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
