According to reports, despite fears, it appears that Bitcoin mining is still in full swing in Russia. You may recall that Russia launched an attack on Ukraine yesterday, causing crypto markets to plummet.
Russia Remains Normal
Bitcoin mining in Russia seems to remain in full swing despite the crisis situation. Compass mining chief, Whit Gibbs, took to Twitter yesterday to assure users of its services that its miners, which were located in Serbia away from the unrest, were still operational and would continue to run as before. The executive also took time to send his prayers to those affected by the crisis, noting that events in Eastern Europe were of particular interest to him because of his Latvian heritage.
You will recall that yesterday, Russia’s president, Vladimir Putin, declared that his armed forces were going to be carrying out a military operation in the Donbas region of Ukraine. Moments after the broadcast, sounds of explosions were heard around Ukraine, and the crypto markets reflected the global tension as Bitcoin slid below $35,000.
While Bitcoin mining remains stable, Ethereum mining in Russia has, however, taken a hit. In a reddit post, it was revealed that Flexpool.io was shutting down its service to Russia. The company, with a pool hash rate of 55.8 TH/s, said while it did not dabble in politics, the conflict went beyond politics and was bigger than anyone. As such, their view is that it would be morally corrupt to profit from such a situation.
As NATO countries as well as the US have threatened sanctions against Russia, its wealthy families and institutions, some pundits believe crypto can be a way to take the sting out of such sanctions. This could lead to an increase in cryptocurrency adoption in Russia.
In a newsletter, co-founder of Morgan Creek, Anthony Pompliano, noted that this could be an option for Russia to move out of the dollar reserve system. In his opinion, the government can throw its weight behind a digital asset that has universal appeal. In his books, the answer would undoubtedly be Bitcoin.
Russia’s Position On Crypto
Since China started enforcement of its ban on cryptocurrencies and Bitcoin mining last year, many cryptocurrency miners have had to migrate to other climes. As a result, countries such as the United States and Russia have seen a significant increase in Bitcoin mining activity within their borders.
You will recall that in January, the Russian apex bank released a report recommending that the East European giant ban cryptocurrencies and Bitcoin mining, citing energy and environmental concerns. However, the recommendations have since faced stiff opposition from tech executives in the country. Even Putin, after the report was released, noted that the country had advantages as an energy giant as regards Bitcoin mining.
While there is no clear governmental stance on the nascent market, it should be noted that just last week, there was a proposal to legalize mining in some regions of the country. The ministry of economic development made this proposal as they decided the approach to take regarding the new asset class.
