How Russia could overtake the US in crypto mining
🇷🇺 On November 1 this year, the law on crypto mining will come into force in Russia. This will allow legal entities and individual entrepreneurs included in the register of the Ministry of Digital Development to mine crypto legally. And also to ordinary citizens without any registrations and permits, if they do not exceed the energy consumption limits.
The RF is now the second largest generator of crypto coins in the world. The US is in first place. Russia has a chance to bypass its main competitor and become the leader of the crypto world, but that requires cheap energy.
Pavel Zavalny, president of the Russian Gas Society and deputy chairman of the State Duma's energy committee, said in September that associated gas from oil fields could be used for these purposes. It still has to be flared (an environmental requirement) and if mining farms are placed near mining sites, everyone will benefit: cheap energy for mining and buyers of that energy for oil field operators.
The idea was then backed by BitRiver, the largest local operator of data mining centers.
Even the northern location of Russia's main oil fields plays into Russian hands: mine owners will be able to save on cooling equipment.
But the accompanying gas option is not the only one. Russian energy officials are well aware of the problem of locked capacities in the Far East. Where large hydropower plants could generate more power, but cannot deliver it to the consumer. Now a large consumer can come for these capacities and cheap hydropower on its own.
It is possible to locate power generation centres in nuclear power plants for which peak fluctuations in electricity consumption by ordinary consumers may be a problem. Mining farms would provide stable, guaranteed load, again obtaining relatively cheap energy.
The only type of generation that should not be used for crypto mining is thermal - because the additional load on thermal power plants would mean an additional environmental burden.
✔️В Russian production currently consumes about 2.5 GW per year. American - 7 GW.