BitRiver – Bitcoin Mining More Profitable in Russia Than US

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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January 22, 2024 13:10 EST

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The head of Russia’s biggest crypto mining firm says that Bitcoin (BTC) mining is more profitable in his country than in the United States – and that halving will only heighten the discrepancy.

Per RBC, Igor Runets, the Founder and CEO of BitRiver, said the difference would likely become more noticeable after the next BTC halving event.

The event is likely to take place in April this year, and is expected to lead to a 50% reduction in miners’ block rewards.

Runets claimed that “on average” Russian crypto miners currently spend about $15,000 per Bitcoin mined.

And he said their United States-based counterparts spend an average of $23,000 to mine BTC 1.

However, BitRiver calculates that after halving, Russian miners will need to spend $24,000 per Bitcoin.

Meanwhile, American miners, Runets explained, would likely need to spend $37,000 to mine BTC 1.

Analysts elsewhere in the world have recently predicted that miners’ production costs will rise to just short of the $38,000 mark.

Runets added that the Russian “industrial crypto mining industry” has “undeniable advantages over the United States.”

He claimed that Russian miners could access “a significant amount of free capacity,” and enjoy a “predominantly cold climate.”

The CEO added that Russian miners can “generally” access “more attractive prices for electricity” than their US counterparts.

Runets also claimed that Russia’s “energy balance” was “one of the greenest in the world” due to the nation’s “high share of hydroelectric and nuclear power plants.”

And the BitRiver chief said that if Russian miners wished to make use of these advantages they would need to “use modern, efficient, and high-performance equipment.”

He also called on the sector to pursue “production innovations” and foster 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?

Furthermore, the CEO opined that Bitcoin could equal its all-time high price of $69,000 before the year is out.

The BitRiver supremo claimed that “provided the US Treasury Department and the US Securities and Exchange Commission do not tighten the screw” on crypto regulation, BTC “may well test the $100k mark.”

Runets said that “if the price of Bitcoin rises,” all altcoins “in the top 10 will also” experience rapid growth.

BitRiver has previously called on Russian lawmakers to provide mining firms with more access to energy resources such as associated gas at oil drilling sites.

The firm said that doing so could help Russia “become a world leader” in the crypto mining space “within two to three years.”