Is Russia the New Frontier for Crypto Mining?

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Crypto mining has become a top priority for businesses and governments throughout the world, Russia is no exception.

According to the Russian Association of Blockchain and Cryptocurrency, (RACIB), the best region for mining is a transit hub and major transport and distribution center with cheap electricity called the Krasnoyarsk Territory. There are currently no crypto-mining activities going on there.

The RACIB was formed to bring miners, cryptocurrency and ICO investors and digital asset owners together to pursue their common goals. Herman Klimenko, (President Putin’s advisor on Internet Issues), announced the organization’s formation in August.

To find the perfect mining location, the association evaluated several regions based on:

The cost of electricity,
The ability to develop a telecommunications infrastructure,
Accessibility and transportation; and
Its free reserve capacities

The Krasnoyarsk Territory

As a result of this exhaustive study, Russia found that the Krasnoyarsk Territory is the best region in Russia for mining cryptocurrency.

In addition, Krasnoyarsk, (an area that spans 2,339,700 square kilometers/ 903,400 square miles), is the largest Russian Federation territory and the 2nd largest Federal subject. The City of Krasnoyarsk is its administrative center. With a population of 1 million, Krasnoyarsk City is Serbia’s third largest city.

Electricity costs only 2.41 rubles per Kw/H or .04 US cents in the territory. However, this still isn’t the cheapest electricity. Electricity in Irkutsk costs 2.14 rubles per Kw/H and Khakassia’s electricity costs only 2.01 rubles per Kw/H.

However, the Krasnoyarsk Territory’s energy reserves total 9,000 MW. Transportation is ideal because the region is already established as a major distribution and transport center for the Siberian Federal District.

When it comes to telecommunications and logistics, Krasnoyarsk, Zheleznogorsk and Divnogorsk, (the three cities within the Krasnoyarsk Territory), have the most to offer. In addition, the Yenisei River provides water that the mining farms can use for coolant.

Other Mining Possibilities

Despite the data discovered during the study, no one has begun mining in the Krasnoyarsk Territory yet. However, there is mining going on in throughout Moscow, Novosibirsk, Leningrad, Sverdlovsk, Irkutsk, Tomsk, Tatarstan and Chelyabinsk.

According to the study, other cities and regions that offer favorable conditions for mining include Nizhny, Rostov, St. Petersburg, Novgorod, Samara, Khanty-Mansiysk Autonomous Okrug, Sakhalin and Tula.

The governor of Leningrad is also inviting miners to set up mining farms throughout its newly built technopark. 40 companies throughout Russia and the European Union have also submitted applications to set up Bitcoin mining farms in Russia.

Do you think Russia is a good location for cryptomining? Do you agree with the corporations planning to cryptomine there?

Images Courtesy of Pixabay, Wikimedia