Russian government bodies are open to utilizing eastern Siberian land for the construction of mining farms. Russia has enough suitable land to build absolutely massive mining organizations and companies. The fact that they aren’t exploiting their capabilities as actively as possible is honestly stupid.
Whats cryptocurrency mining?
Well, essentially it is a process that involves the utilization of powerful computers to solve complex cryptographic mathematical algorithms. In exchange for their efforts, miners receive a monetary reward in cryptocurrencies.
Miners operate under proof-of-work concepts. Additionally, large-scale crypto mining operations require large amounts of computing power and electricity. So, if Russia can provide that, they can become quite competitive. It’s not out of the scope of reasonability to assume that Russia could one day overtake China.
Who, currently, occupy the number 1 spot for profitability. I don’t have any doubts that the Russian government could keep electricity costs reasonably low enough to gain a competitive advantage in this field.
Siberia for cryptocurrency creation.
So far, the Russian government wants to construct a mining city near Siberia or the far east. That’s right, a full blown city devoted towards crypto operations. This shouldn’t come off as crazy since Russia has enough land to really launch some ridiculous scale operations.
Mining relies on head temperatures too. After all, imagine having a ton of computer parts under one roof, all revving at max power. You can imagine the amount of electricity that’s needed to power a truly massive mining operation.
Russia has a weird stance on cryptocurrencies.
Constant contradictory statements are coming out of the mouths of Russian government officials. “Bitcoin will never become a legal currency”, “Let’s start grinding out crypto”, “Blockchain technology is awesome”, “Prepare for the CryptoRuble”. Honestly, too confusing. They need to develop a concrete disposition in terms of cryptocurrencies.
Hopefully, once these operations start developing around the country, they will be taxed. I would assume that mined cryptocurrencies would have to be converted to the CryptoRuble and appropriately taxed.