• Russia has become the world’s second most powerful Bitcoin (BTC) mining provider, generating 1 gigawatt of mining power in Q1 of 2023.
• The US is still the leader with 3-4 GW of mining capacity and was followed by Gulf countries (700 MW) and Canada (400 MW).
• Kazakhstan previously held the second place but had to drop to 6.4% due to an energy crisis and tighter regulations.
Russia Rises as 2nd Largest BTC Mining Power
US Leads with Most Mining Capacity
The United States remains in its position as the leading country with the most significant mining power, as it generates 3-4 GW of mining capacity. Other countries follow with lesser amounts combined: Gulf Countries with 700 megawatts (MW), Canada at 400 MW, Malaysia at 300 MW, Argentina at 135 MW, Iceland at 120 MW, Paraguay at 100-125 MW, Kazakhstan at 100 MW and Ireland at 90 MW.
Kazakhstan Experiences Energy Crisis
Kazakhstan previously occupied 18% of the global hash rate in late 2021 when it was the second-largest mining power. However, they started experiencing an energy crisis in late 2021 which led them to take discouraging measures against miners such as cutting off their power supplies, tightening regulatory framework and introducing a differentiated tax rate which caused them to fall to 6.4%.
Russia Claims Second Place
As of Q1 2023, Russia claimed Kazakhstan’s place as the second largest miner by generating 1 gigawatt (GW) during that time period according to data from Bitriver reported by Moscow Times. It is believed that this advancement is likely related to Kazakhstan’s changing attitude towards crypto miners due to their energy crisis.
Climate Conditions Help Russian Growth
Russia’s success in rising up ranks could also be attributed to its cold climate which makes it ideal for crypto mining activities and various resources like low-cost electricity which help make operations more cost effective than other countries.
Overall cryptocurrency mining is heavily affected by regulatory changes across different countries which can determine how successful they are in terms of hashrate growth or decline over time. With a stable environment and resources like cheap electricity available it looks like Russia will continue on its path towards becoming one of leading players when it comes to crypto mining globally.