Fun

Demand for Cryptocurrency Miners Rises in Russia Amid Low Prices of Hardware

News Feed - 2022-12-04 02:12:03

Demand for Cryptocurrency Miners Rises in Russia Amid Low Prices of Hardware


Russia’s market for specialized crypto mining equipment has been seeing high demand over the past couple of months, with buyers attracted by the low price tags. Russian experts also predict an increase in the supply of used coin minting hardware as large foreign companies leave the industry. Russian Demand for Powerful ASIC Miners Skyrockets in Q4, Report Reveals


Demand for powerful computing devices designed to mint bitcoin has surged in Russia during the fourth quarter of the year, spurred by their low prices amid declining crypto markets, the Russian business daily Kommersant reported. The country’s cheap electricity rates and expectations for a higher supply of second-hand miners have played a role as well.


The positive trend in the market for ASIC (application-specific integrated circuit) miners, used to extract bitcoin, has been observed despite a recent decrease in demand for graphics processing units (GPUs), or video cards employed to validate transactions for other cryptocurrencies, experts from the industry told the newspaper.


The sales of mining hardware retailer Chilkoot in the first two months of Q4 exceeded those for the entire third quarter. And the total for the previous nine months of 2022 was 65% higher than last year’s volume. The daily also quoted Bitriver, one of Russia’s largest mining operators, which said that in the first 10 months of this year the demand for miners grew by 1.5 times.


“We work with legal entities and they began to buy 30% more equipment per transaction than at the beginning of the year,” noted Artem Eremin, Chilkoot’s development manager. He added that the prices of GPUs started falling in the second half of September and are still declining, citing Ethereum’s transition from proof-of-work to proof-of-stake mining as a major reason.


If before The Merge video cards were bought by miners in huge quantities, now demand comes mostly from gamers, acknowledged Roman Kaufman, co-founder of Berezka DAO and Weezi. The crypto entrepreneur confirmed that ASICs are now gaining “huge popularity” in the Russian Federation. Depressed Prices of New and Used Equipment to Benefit Big Mining Companies in Russia


Industrial mining enterprises in Russia can take advantage of the current market conditions, said Bitriver’s Financial Analyst Vladislav Antonov, who also pointed out that the increase in demand is due to decrease in wholesale prices. The cost of mining hardware decreased by almost 20% between August and October, he revealed.


Russia’s relatively low electricity rates, compared to many other regions in the world, is another factor supporting demand for crypto miners, according to Terracrypto’s founder Nikita Vassev.


Despite the low valuations in the crypto market, with bitcoin (BTC) hovering in the range of $16,000 – $17,000, Russian mining firms still have some margin of safety, noted 51ASIC co-founder Mikhail Brezhnev. When using the latest models of coin minting machines to mine at just $0.07 per 1 kWh, the production cost of 1 bitcoin is around $11,000.


The picture could improve further for crypto mining businesses in Russia due to the expected influx of used mining equipment. As Brezhnev explained, many mining companies, mainly foreign-based and financed by borrowed capital or clients, have failed to optimize their activities and may go out of business amid the current bear market. He believes their mining machines will most likely be bought in bulk by others who want to enter the industry.


The comments of the experts interviewed by Kommersant come after earlier reports revealed a significant growth in revenue and electricity consumption in Russia’s mining sector over a period of several years. However, this year’s crypto winter and sanctions imposed in response to Moscow’s invasion of Ukraine hurt crypto miners in Russia and some foreign investors have already pulled out of the country. Tags in this story ASIC, ASICs, Bitcoin, Bitcoin mining, BTC, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, experts, market, Miners, mining, Mining Devices, mining equipment, mining hardware, mining machines, opinions, Predictions, Prices, Russia, russian


Do you think the prices of ASIC miners in the Russian market will continue to fall? Share your expectations in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Applied Direct Response — ERCOT Study Shows Bitcoin Mining Is Beneficial to the Texas Grid MINING | 12 hours ago Bitcoin"s Total Hashrate Slides Lower in December as BTC Miners Struggle for Profits MINING | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMaxine Waters Criticized for Praising SBF — Lawmaker Says ‘We Appreciate That You’ve Been Candid’ Next articleReport: AAX Users Storm Crypto Exchange’s Nigerian Offices, Attack Employees Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItToday"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits


As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Marcel Pechman3 hours agoBitcoin derivatives data suggests BTC price holds the current rangeBTC investor sentiment turns increasingly bullish after this week’s quick rebound from a sharp price correction.1101 Total vie
China Seizes the Blockchain Opportunity. How Should the US Respond?
Michael J. Casey is CoinDesk’s chief content officer and a senior advisor for blockchain research at MIT’s Digital Currency Initiative. The following article originally appe
Ariva Celebrates 1st Year Anniversary With Impressive Achievements in the Blockchain Industry
Ariva Celebrates 1st Year Anniversary With Impressive Achievements in the Blockchain Industry press release PRESS RELEASE.Ariva, a next-generation tourism & travel blockchain protoc
Peafarm – NFT Crypto Games on Tron 4.0 Platform, Airdrop Is Now Live
Peafarm – NFT Crypto Games on Tron 4.0 Platform, Airdrop Is Now Live PRESS RELEASE. NFT (non-fungible token) had been used in the construction of decentralized
Polygon DeFi Yield Farming on AscendEX
Polygon DeFi Yield Farming on AscendEX press release PRESS RELEASE. AscendEX, a leading cryptocurrency trading platform, is excited to celebrate Polygon (Curve) Y
Biggest Movers: DOGE, SHIB Slip Following ECB Rate Hike
Biggest Movers: DOGE, SHIB Slip Following ECB Rate Hike Dogecoin and shiba inu fell by as much as 5% in today’s session, as markets reacted to the European Central Bank (ECB) rat
Binance exec denied bail in Nigeria money laundering trial
Amaka Nwaokocha11 hours agoBinance exec denied bail in Nigeria money laundering trialHead prosecutor Ekele Iheanacho objected to bail by highlighting Gambaryan’s questionable attempt to get a new passport, allegedly du
ByBit to launch Notcoin trading and withdrawals next week
Helen Partz13 hours agoByBit to launch Notcoin trading and withdrawals next weekThe community is anticipating the trading launch of Notcoin, although no one knows its price at or after listing.4382 Total views10 Total sh
DeepMind CEO says Google to spend more than $100B on AGI despite hype
Tristan Greene6 hours agoDeepMind CEO says Google to spend more than $100B on AGI despite hypeDemis Hassabis previously compared crypto and AI, saying both had a problem with hype and scams.672 Total views8 Total sharesL
Household Crypto Holdings Included in Bank of Russia’s Consumer Finance Survey
Household Crypto Holdings Included in Bank of Russia’s Consumer Finance Survey The Central Bank of Russia has added crypto asset holdings of households to its survey of consumer
Mining Rig Manufacturer Canaan Launches 2 New ASIC Bitcoin Miners With up to 130 Terahash
Mining Rig Manufacturer Canaan Launches 2 New ASIC Bitcoin Miners With up to 130 Terahash On Monday, bitcoin mining rig manufacturer Canaan Inc., announced the launch of the compan
CFTC announces $1.8M settlement against brokerage firm FalconX
Turner Wright2 hours agoCFTC announces $1.8M settlement against brokerage firm FalconXThe regulator reported the firm voluntarily improved its practices after the CFTC’s civil suit with Binance and its former CEO Chang