The head of Russia’s largest crypto mining firm says Bitcoin (BTC) mining is more profitable in his country than in the United States – and that the halving will only widen the discrepancy.
According to RBC , Igor Runets, the founder and CEO of BitRiver, said that the difference will likely be felt more clearly after the next BTC halving event .
The event is likely to take place in April this year and is expected to result in a 50% reduction in miners’ block rewards.
Runets claimed that Russian crypto miners are currently spending “on average” about $15,000 per Bitcoin mined. And he said that their US-based counterparts spend an average of $23,000 mining BTC 1.
However, BitRiver calculates that Russian miners will have to spend $24,000 per Bitcoin after the halving. American miners, on the other hand, according to Runets, would likely have to spend $37,000 to mine BTC 1. Analysts elsewhere in the world have recently predicted that miners’ production costs will rise to just under $38,000.
Runets added that the Russian “industrial crypto mining industry” has “indisputable advantages over the United States.” He claimed that Russian miners have access to “a significant amount of spare capacity” and enjoy a “predominantly cold climate.”
The CEO added that Russian miners “generally” have access to “more attractive electricity prices” than their US counterparts. Runets also claimed that Russia’s “energy balance” is “one of the greenest in the world” due to the “high proportion of hydroelectric and nuclear power plants.”
And the BitRiver boss said that if Russian miners want to take advantage of these benefits, they “need to use modern, efficient and powerful equipment.”
He also called on the industry to pursue “production innovation” and promote more BTC and crypto mining specialists.
🇷🇺 Russian Trade Ministry ‘Develops Tool That Lets Crypto Miners Evade Sanctions’
Russia’s trade ministry has developed a tool to help crypto miners evade Western sanctions.#CryptoNews #Russia #newshttps://t.co/nlfDfzoGaS
— Cryptonews.com (@cryptonews) November 15, 2023
A Bright Future for Russia’s Bitcoin Miners?
Additionally, the CEO suggested that Bitcoin could reach its all-time high of $69,000 this year.
The BitRiver boss claimed that “assuming the US Treasury and Securities and Exchange Commission don’t tighten the screws” on crypto regulation, BTC “could well test the $100,000 mark.”
Runets said that “if the price of Bitcoin rises,” all altcoins “in the top 10 will also” experience rapid growth.
BitRiver has already called on Russian lawmakers to give mining firms better access to energy resources, such as associated gas from oil drilling .
The company said this could help Russia become the world leader in crypto mining “within two to three years.”
- CryptoQuant Analyst: Bitcoin Nowhere Near Its Peak – Buckle Up, Hodlers! - December 21, 2024
- Chainalysis: $2.2 Billion Lost to Crypto Hacks in 2024 - December 21, 2024
- Bank of Japan leaves interest rate unchanged: Impact on the macroeconomy and the crypto market - December 20, 2024
