Bitcoin Mining Revenues in Russia Increase 18x in 4 Years Before ‘Worst Quarter’ – Mining Bitcoin News

After multiplying several times over the past few years, Russian revenue from bitcoin minting has declined significantly since this spring. The findings come from new research that also establishes that the sector has grown in both the ups and downs of the crypto market.

$1.4 Billion Revenue Expected From Bitcoin Mining In Russia This Year As Business Shrinks

According to a new report from computing hardware distributor Intelion Data Systems, cited by RBC Crypto, Bitcoin mining revenue in Russia increased 18-fold between 2017 and 2021. During this period, from 7 billion rubles (less than $114 million at the current exchange rate) in the first year of the study, he increased to 128 billion rubles (more than $2 billion) in the last year.

Bitcoin mining revenues have fallen to just over 57 billion rubles ($929 million) in the past eight months, according to a study, despite a fairly confident start to 2022. Over ten years of observation.

Russia dominated 4.66% of the monthly global hashrate as of January 2022, but that figure fell as Russian miners were later hit by US sanctions imposed over the war in Ukraine. share is shrinking. Taking these indicators into account, the projected annual turnover of the segment this year is approximately 85.59 billion rubles (less than $1.39 billion).

Nevertheless, mining activity in Russia over the past five years as a whole has produced important results in terms of growth dynamics, analysts say. Since 2017, when the popularity of this type of business began to grow exponentially, revenues in this sector have grown rapidly for much of that period, regardless of the ups and downs of the crypto market.

According to Intelion Data Systems CEO Timofey Semenov, the expansion potential of cryptocurrency mining in the Russian Federation is huge and could have a significant impact on the Russian economy. It also helps the vast country to deploy its own IT infrastructure and attract investment to energy-rich regions.

Another study previously conducted by Semenov’s company revealed that data centers that create digital currencies now use 20 times more electricity than they did five years ago. The total energy consumption of this sector has reached that of agriculture, the authors said in August.

Do you think the Russian mining industry can resume growth as sanctions tighten? Share your thoughts on the matter in the comments section below.

Lubomir Tasev

Lubomir Tasev, a tech-savvy journalist from Eastern Europe, loves what Hitchens says. In addition to cryptocurrencies, blockchain and fintech, international politics and economics are sources of inspiration.