Taking into account the fall in Bitcoin value in November-December 2018, the mining industry was under threat because the cost of producing the first cryptocurrency in many countries exceeds its cost (at the time of writing, the cost was fixed at $ 3,400 by Coinmarketcap).
Elite Features in early 2018 published a study, which provides data on the cost of mining one Bitcoin coin in different countries. In total, there are 115 states in the list, and only in 20 countries the cost of the first cryptocurrency is below $ 3,000. In addition, most countries have problems for the industry in the form of a negative attitude of the authorities, an unstable political situation and other factors.
Miners view as a promising areas of the post-Soviet countries: Armenia, Georgia, Uzbekistan, where the government loyal to the cryptoindustry, and there are benefits for the development of the industry.
BlackBall marketing agency experts assess Russia as a possible mining jurisdiction, highlighting the advantages and disadvantages of the direction.
The cost of mining Bitcoin (BTC) in Russia
The study Elite Features indicated that the cost of mining Bitcoin in Russia is $ 4,675 per coin, but in different regions of the country the cost of electricity is different, and this factor is decisive in calculating the cost of bitcoin.
The difference in electricity tariffs in different regions of the federation is significantly different. If in the Irkutsk region the cost of a kilowatt of electricity in 2018 is only 1.01 rubles, in the Chukotka Autonomous District this figure is 8 rubles 20 kopecks, exceeding the minimum tariffs by more than 700%.
Average tariffs for electricity in Russia amount to 4.12 rubles per kilowatt of electricity. This value was taken into account when calculating the cost of mining Bitcoin in Russia, however, in some regions, the cost may be 3-4 times lower than specified in the study Elite Features.
If we take into account the fall in the cost of Bitcoin to the mark of 3,400 dollars, we can consider those regions where electricity tariffs are lower than 2.99 rubles per kilowatt. There are 12 such regions. Of these, in two subjects tariffs do not exceed 2 rubles – in the Irkutsk region, the cost per kilowatt is 1.01 rubles, and in the Republic of Khakassia – 1.99. Consequently, in these areas, the cost of mining Bitcoin will not exceed 2 thousand dollars per coin.
Prospects for the development of mining in the regions of the Russian Federation
Irkutsk region is already actively used for mining and has great prospects. The region is provided with energy facilities – there are 8 power stations in the region, including two giant stations of Bratsk Hydroelectric Power Station (22 GW) and Ust-Ilimsk Hydroelectric Station (21 GW). The major water artery of the Angara can be used for cooling mining farms systems.
In the Republic of Khakassia, there are three power plants with a total capacity of 25 GW. One of the main water arteries of Russia, the Yenisei River, flows through the region; its water can also be used to cool equipment.
Therefore, Khakassia and the Irkutsk region can be considered as priority areas for mining Bitcoin. Infrastructure is developed in the regions, there are no problems with electricity production and low tariffs.
Legislative regulation
Another advantage of choosing Russia as a jurisdiction for mining is the legislative regulation of the industry. The country is preparing for the adoption of a bill regulating the cryptocurrency industry in general and the mining industry in particular.
Therefore, it will be possible to engage in mining legally, without fear of a ban on activity. However, there is a reverse side of the coin. According to the bill, mining will be recognized as a business and you will need to pay income tax. It is 20%, of which 3% is transferred to the federal budget, and 17% to the regional one.
