- Russia now 2nd largest Bitcoin miner in the world.
- U.S. remains top Bitcoin mining country with a mining capacity of 3-4 GW.
Russia has made significant strides in the Bitcoin mining industry, as it recently surpassed Kazakhstan to become the second-largest Bitcoin mining power globally. As per data from Bitriver, a Russian mining company, Russia generated one gigawatt of mining power in the first quarter of 2023, bringing it up to the second spot in the world.
The US still holds its top spot as the leader in the Bitcoin mining industry with a mining capacity of 3-4 GW. Russia follows closely with 1 GW, while the Gulf countries rank third with a combined mining capacity of around 700 MW. Other countries on the list include Canada, Malaysia, Argentina, Iceland, Paraguay, Kazakhstan, and Ireland.
Russian Overtakes Kazakhstan
In the past, Kazakhstan was the second-largest miner of Bitcoin. However, Russia surpassed both the US and Kazakhstan in new mining capacity by the end of 2021. By the end of the first quarter of 2023, Russia had overtaken Kazakhstan as the world’s second-largest Bitcoin mining power.
Regulatory Changes Affect Rankings
Regulatory changes often significantly influence the ranking of leading Bitcoin mining countries. Kazakhstan provides an example of this phenomenon. At the end of 2021, Kazakhstan was the world’s second-largest mining power, accounting for 18% of the global hash rate. However, the country experienced an energy crisis towards the end of the year, leading the government to shift its attention to the mining industry.
Impact of Regulatory Changes
The regulatory environment in a country plays a vital role in determining the future of the cryptocurrency industry. In Russia, the government has been relatively supportive of the cryptocurrency industry. The country’s energy resources and cold climate have made it an ideal location for miners. In contrast, China, which was once the dominant player in Bitcoin mining, has seen a significant crackdown on the industry, leading to a decline in the country’s mining capacity.
The ranking of leading Bitcoin mining countries is likely to keep changing as regulatory environments and geopolitical events continue to evolve. With Russia now emerging as the second-largest Bitcoin mining power globally, it is clear that the country’s mining industry is set to make a significant impact on the future of cryptocurrency. However, whether Russia will be able to maintain its position or not remains to be seen, and only time will tell.