Cryptocurrency mining profitability is down. If we look at Bitcoin, we see low profits yet the price of equipment is on the rise, as is the cost to run the equipment. Worldwide we are seeing a decrease in the popularity of mining as a result of this. According to reports though, within Russia, it seems that mining is still on the rise and is now more popular than ever.
Russia is quite a good venue for mining. With low energy bills due to natural resources, locations of cold weather that are perfect for building mining warehouses and a modern technology sector that is seeing a huge boom, it’s actually no surprise that mining is on the up, come to think of it.
According to The Paypers:
“The number of crypto mining companies has increased by 15% in H1 2018 to a total of 75,000, according to the Russian Association of Cryptocurrencies and Blockchain (RACIB). The mining industry already employs 350,000 people. As of July 2018, Russia accounts for about 6% of the world’s mining market, which is 1% more than a year ago, while the US and Canada hold the leading positions. At the same time, RACIB claims the number of Russians owning cryptocurrency has increased in 2018 from 2.5 to 3 million.”
“Earlier, RACIB announced that 70,000 Russians are employed in the crypto sector, a figure that could exclude those hired by the mining companies, the online publication continues. Moreover, according to Russian crypto media, the average salary in the industry has fallen by 40% from the 2017 record levels but, nevertheless, it remains relatively high for Russian standards, 10 times higher than the country’s average for certain professionals.”
See the full article for yourself, here.
These statistics offer some great insight into the future for cryptocurrency mining. If Russia are able to capitalise on this and become a powerhouse for mining then they may very well start to find cheaper alternatives and make the industry profitable again.