Where in Russia to mine is good: the results of one study

It is no secret that the mining of cryptocurrency is beneficial only where the cost of electricity is not too high, because the equipment for mining coins consumes a lot of energy. In order to find out which regions of Russia are best suited for mining, a study was conducted. True, its authors are not a scientific organization, but the Russian Association of Cryptocurrencies and the Blockchain (RACIB). The study evaluated criteria such as the cost of electricity, the availability of reserves of free capacity, the development of telecommunications infrastructure.



As it turned out, mine is most profitable in the Krasnoyarsk Territory. There is not only low cost of electricity, but also practically optimal parameters of telecommunication and logistics infrastructures. Plus, to cool the premises of crypto farms, you can use the cold water of the Yenisei. The cost of electricity is lower only in Khakassia (2.01 rubles compared with 2.41 rubles per kWh in the Krasnoyarsk Territory) and the Irkutsk Region (2.14 rubles). Cooling systems account for a significant portion of the electricity consumed by the data center or crypto farm. According to the Gartner agency, this proportion ranges from 35% to 50% of the total electricity consumed.



Despite the fact that the conditions for mining in the Krasnoyarsk Territory are really favorable, there are practically no large crypto farms there. In Russia, the largest facilities of this type are located in Moscow and the region, the Leningrad, Novosibirsk, Irkutsk, Sverdlovsk, Tomsk and Chelyabinsk regions, as well as in Tatarstan. In addition to the Krasnoyarsk Territory, St. Petersburg, Nizhny Novgorod, Rostov, Samara, Sakhalin and Tula regions, plus the Khanty-Mansiysk Autonomous Okrug - Ugra, can be attractive to miners.



Mining on the territory of Russia is engaged not only domestic, but also foreign companies. For example, RACIB recently received 40 applications for the placement of mining equipment from residents of EU countries and China.

What about restrictions?

Despite the fact that the National Bank is wary of cryptocurrencies, mining in Russia is not prohibited. According to many experts, to prohibit bitcoins or any other coins is meaningless.



Supporters of cryptocurrency also refute the comparison of bitcoin or altcoins with pyramids. The fact is that if the pyramid has those who get the "cream" (beneficiaries), then the cryptocurrency tops of the pyramid simply do not. The system is completely transparent and works on the basis of algorithms.



Experts believe that instead of a ban, it is best to use some kind of regulatory mechanisms. If you prohibit bitcoins in Russia, then it will simply “fall out” of the global circulation of cryptocurrencies and global cryptoeconomics. In many countries, regulators instead of prohibitions seek to establish certain rules for the use of cryptocurrency, which will allow to introduce them into the national economy.



At the end of October, the President of the Russian Federation instructed the Bank of Russia and the government to develop methods for regulating cryptocurrency, mining and ICO. The relevant changes to the legislation should be made by the responsible persons before July 1, 2018. In particular, the law will define such concepts as the technology of distributed registries (this is the blockchain), digital credit, digital mortgage, token, smart contract and the very concept of cryptocurrency.







Officials will also determine the requirements for the organization and implementation of mining, registration of entities engaged in mining and the procedure for taxation of income derived from this type of activity. Among other things, the government creates an ICO regulatory system. The control points will be adjusted first: stock exchanges and exchange sites. However, according to the participants of the crypto market, the tax will begin to impose income on the sale of cryptocurrency.



Unfortunately, it is not known who will be able to mine under the new rules, and how the work of miners will be monitored. It is possible that a certain register will be formed, where all those who are already engaged in the extraction of cryptocurrency will be made, and those who are just going to do this will gradually be introduced.



Perhaps the introduction of a taxation and registration system for miners is a really good idea that will allow everyone to engage in the mining and trading of cryptocurrencies. Among the participants of the cryptographic market there are those who do not consider it necessary to create a register of companies and individuals engaged in mining. But most of the participants still understand that in one way or another they will have to regulate the market, otherwise in Russia and some other countries bitcoin and other cryptocurrencies may simply begin to prohibit.



As for ICO, Russian experts do not have a common opinion. Someone thinks that it is possible to allow everyone to the primary placement of tokens, and someone sticks to the idea that an “strong hand” of an expert is required here. Regulation of ICO will help reduce the number of those who try to “fish in troubled waters” and prevent situations where people sell apartments to invest in ICO.