The market for specialized cryptocurrency mining equipment in Russia is Soaring Buyers are attracted to low price tags. Russian experts also expect the supply of used coin minting hardware to rise as large foreign companies exit the industry.
Russia’s demand for powerful ASIC miners soared in Q4, report reveals
Demand for computing devices surged in the fourth quarter of this year. The price is low amid the falling cryptocurrency market, according to a report by the Russian economic daily Kommersant. Low electricity rates in the country and expectations for an expanded supply of second-hand miners are also contributing factors.
ASICs (application-specific integrated circuits) used to extract bitcoins Miner market showing positive trend despite recent decline in demand for graphics processing units have been observed (GPUs), or video cards used to verify transactions in other cryptocurrencies, an industry expert told the paper.
Sales for mining hardware retailer Chilkoot in his first two months of the fourth quarter surpassed sales for the entire third quarter. The last nine-month total for 2022 is also 65% higher than last year’s volume. Bitriver, one of Russia’s largest mining operators, says miner demand has increased 1.5 times in his first 10 months of the year.
“We are working with legal entities and they started buying him 30% more equipment per transaction than at the beginning of the year,” said Artem Eremin, development manager at Chilkoot. says Mr. He added that GPU prices started falling in his late September and are still falling, citing Ethereum’s move from proof-of-work to proof-of-stake mining as the main reason.
Before The Merge’s video cards were bought in large numbers by miners, demand is now primarily from gamers, admits Berezka DAO and Weezi co-founder Roman Kaufman. increase. Crypto Entrepreneur Confirms ASIC Is Now Gaining “Great Popularity” In The Russian Federation.
Low Prices For New And Used Equipment To Benefit Big Russian Mining Companies
Russian industrial mining companies can take advantage of current market conditions, said Vladislav Antonov, financial analyst at Bitriver. Mining hardware costs have fallen by almost 20% between August and October, he revealed.
According to Terracrypto founder Nikita Vassev, the relatively low cost of electricity in Russia compared to many other parts of the world has fueled the demand for cryptocurrency miners. one factor.
Bitcoin (BTC) hovering in the $16,000-$17,000 range Despite low valuations in the cryptocurrency market, Russian mining companies still have some , notes the 51ASIC co-founder. Mikhail Brezhnev. Using a modern model coin mining machine that mines for just $0.07 per kWh, the production cost of 1 bitcoin is around $11,000.
An expected influx of used mining equipment could further improve the Russian cryptocurrency mining business. As Brezhnev explained, many mining companies, which are primarily foreign-based and financed from debt capital or customers, fail to optimize their activities during the current bear market and go bankrupt. There is a possibility. He believes their mining machines are most likely to be bought in bulk by others who want to enter the industry. It comes after previous reports revealed that the mining sector’s revenues and electricity consumption had increased significantly over the years. However, this year’s crypto winter and sanctions imposed in response to Moscow’s invasion of Ukraine have hit Russian crypto miners, with some foreign investors already leaving the country.
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