Russia has become the second-largest country in the world in terms of Bitcoin and cryptocurrency mining, with 1 gigawatt of power involved, according to BitRiver, a company that provides colocation services for cryptocurrency mining operations. The United States maintains its position as the leader with a mining capacity of 3-4 GW. Lack of clear regulations regarding cryptocurrencies in the United States may lead to a potential market distribution shift. The positive trend in mining capacity in Russia is attributed to the restrictions imposed on mining activities in Kazakhstan and China due to electricity shortages. Kazakhstan has signed a law on digital assets that regulates cryptocurrency mining, which will provide a sense of security for mining industry players to plan their operational and financial activities, execute major projects, draw investments, and advance related sectors of the Russian economy.

(By AMAKA NWAOKOCHA)