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Russia Determines Best Location for Cryptocurrency Mining in the Country

Nov 16, 2017 Posted /  8285 Views

Russia Determines Best Location for Cryptocurrency Mining in the Country

Russia Proposes Cryptocurrency Mining Region

The just formulated Russian Association of Blockchain and Cryptocurrency (RACIB) successfully completed a survey to determine the best region to mine cryptocurrency in the country. Among the factors considered by the authority were the cost of electricity, availability of transport and telecommunication facilities and access to logistics. RACIB was formulated in August this year to monitor events in the cryptocurrency and blockchain sector of Russia. The association was launched by the Russian presidential advisor on Internet Issues, Herman Klimenko and is headed by Mr. Yuri Pripachkin.

During the survey a comparison of the parameters such as electricity cost, free reserve capacities, access to logistics and telecommunication was done among the different regions of Russia.


Krasnoyarsk The Chosen Territory

Results of the study zeroed on Krasnoyarsk, the largest territory in Russia spanning an area of about 2339700 square Kilometers. Its city referred to as the city of Krasnoyarsk has a population of approximately 1 million people.

Krasnoyarsk was chosen because it matched most of the required parameters set by RACIB, with electricity costing just about 4 US cents a kW/h, though it is the third cheapest region in terms of electricity cost behind Khakassia and Irkutsk. The region has a well-developed telecommunication capabilities with about three major cities of Krasnoyarsk, Divnogorsk and Zheleznogorsk with the best facilities. The territory is located in the vicinity of the Yenisei River which provides a cheap source of water for cooling the mining ASICS.

The Territory has an untapped energy reserve of about 9,000 MW located within a major transport and distribution hub linking to the main Siberian Central business district. With all the mentioned conditions favorable for cryptocurrency mining this terrible still remains a virgin land in terms of Cryptocurrency mining. Other locations in Russia conducive for cryptocurrency mining as per RACIB’s survey results include St. Petersburg, Nizhny Novgorod, Rostov, Samara, Sakhalin, Khanty-Mansiysk and the Tula regions. Series of companies have shown interest in setting up cryptocurrency mining businesses in Siberia.


Implications to Bitcoin Miners

There have been mixed reactions from the cryptocurrency community according to the announcement of the marking of the mining territory. Most members of the online community are seeing this move as a way of centralizing Bitcoin mining activities in one location for easy implementation of regulations. We quoted Excerpt from user feedback following the announce below.


“I never thought of it that way! But the technology is still centralised around one fictitious person.Satoshi Nakamoto. I know centralised is one of the propaganda kool-aid words that Bitcoiners drink on a regular basis. It instils fear and hatred of the establishment. It also establishes a problem for their Bitcoin solution to have some meaning. If the meaning was changed the millennial dreamer's world may crumble. Perhaps we should be using a different word so we don't cause any suicides in the millennial population?”


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Tags: blockchain cryptocurrency russia Bitcoin Miners Cryptocurrency Mining

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