Due to low hardware prices, demand for cryptocurrency miners is increasing in Russia

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Over the past few months, demand for specialized crypto mining equipment has increased in Russia, with consumers drawn by the equipment’s inexpensive prices.

As major foreign enterprises exit the market, Russian analysts also foresee an increase in the supply of old coin minting equipment.

Russian demand for robust ASIC miners surges in Q4, according to a report

The Russian business daily Kommersant reported that during the fourth quarter of the year, demand for powerful computing devices designed to mint bitcoin increased due to their low prices and the slumping cryptocurrency markets.

The low cost of electricity in the nation and anticipation of a larger pool of used miners have also contributed.

Despite a recent decline in demand for graphics processing units (GPUs), or video cards used to validate transactions for other cryptocurrencies, industry experts told the newspaper that the market for ASIC (application-specific integrated circuit) miners, which are used to extract bitcoin, is on the upswing.

The journal also cited Bitriver, one of the biggest mining companies in Russia, which said that the need for miners increased by 1.5 times in the first 10 months of this year.

Before The Merge, miners bought a lot of video cards, but now, according to Roman Kaufman, co-founder of Berezka DAO and Weezi, gamers are the main buyers.

Russian industrial mining companies can benefit from the current market conditions, according to Vladislav Antonov, a financial analyst for Bitriver, who also noted that the drop in wholesale prices is what has caused the rise in demand.

According to Nikita Vassev, the founder of Terracrypto, another reason boosting demand for crypto miners is Russia’s comparatively inexpensive electricity tariffs in comparison to many other countries of the world.

According to co-founder of 51ASIC Mikhail Brezhnev, despite the low values in the cryptocurrency market—where bitcoin (BTC) is currently trading between $16,000 and $17,000—Russian mining enterprises still have some financial cushion.

Due to the anticipated influx of old mining equipment, things could get better still for Russian cryptocurrency mining companies.

According to Brezhnev, many mining businesses, many of which are based abroad and are financed by clients or borrowed cash, have not optimized their operations and could go out of business given the current bear market.

The remarks of the professionals Kommersant spoke with follow earlier reports that showed a large increase in revenue and electricity use over a number of years in Russia’s mining sector.

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