Russia is the best territory for mining


 Russia is the best territory for mining

24 мая 2021

Global environment

The ongoing growth of cryptocurrency rates and capitalization, along with the rapid development of the decentralized finance sector are a global phenomenon and key positive factor. The gradual adoption of cryptocurrencies by institutional investors has led to their increased popularity and a wider interest in investing in cryptocurrencies worldwide.

Legislative framework

Russia ranks third in the world in terms of the number of miners today, lagging behind China and the US. The law "On Digital Financial Assets (DFA)" came into effect in the Russian Federation in January 2021, which is designed to regulate the circulation of cryptocurrencies in the country. The law is aimed at securing the flow of investments in the Russian mining industry.

Electricity cost

The first thing to understand is that investors want a quick payback due to the cheap location costs. Mining is a very energy consuming activity, so the efficiency of mining depends largely on the cost of electricity. There is an excess of electricity in certain territories in Russia, so the cost of electricity is much lower than in European countries, for example. The average price per kWh in Russia is just over €0.03. Also, if a data center is located near a power plant or in a special economic zone with unique conditions for electricity costs guaranteed by the state, investors will legitimately and significantly save on electricity.

Climate

The second factor that influences the ease and profitability of mining in Russia is the outdoor temperature. Mining power generates a huge amount of heat, so the cooler the climate, the lower the cost of air conditioning and ventilation. This is why most of the major data centers are located in the northern part of Russia and even in the Arctic. The climate conditions of Russia make mining more profitable.

Infrastructure and staff

It is also very important to maintain a high efficiency in the equipment operation by using a developed infrastructure and competent personnel, because this money-generating, expensive equipment requires constant maintenance and supervision. Therefore, locating a data center in a developed infrastructure with reliable and powerful communications that meet the highest requirements is one of the keys to successful cryptocurrency mining. There are many places like this in Russia.

The availability of qualified personnel is also important. Russia is a leader in terms of the number of miners and there is no shortage of competent technical specialists who can provide qualified installation, configuration, and maintenance of equipment.

Other

Favorable conditions for mining development are determined not only by cheap rates for the placement of equipment, but also by guarantees of safety, developed competencies, transparency, and legal standards. It depends more on the service provider than on the policy of the state. Let's take a look at a few crucial factors.

When placing the equipment, you need guarantees of both physical and legal safety. There have been cases when owners lost their equipment to fires, malicious actions by hosts, or because the data center lacked sufficient legal grounds to conduct such activities.

In addition, such factors as transparency in relationships are also very important. For example, you need to take into account the reputation of the company, the relevance and openness of title documents, and their legal compliance when placing the equipment.

The data center should allow investors to earn from mining without violating the laws of Russia. In addition to this, a good provider will also offer additional services to simplify operations. This can be the export of hashrate, or the sale of computing power to a jurisdiction loyal to cryptocurrencies. This service makes it easier to receive fiat money, while reducing costs and risks when transferring and converting cryptocurrencies.

Considering these issues, it can be said that all these positive factors are certainly present in Russia. You can be confident that the equipment will earn as much money as possible for the owners, and investors can be confident in guarantees on their investments.