Cryptocurrency Mining News – Will some countries adopt crypto mining on a national scale?

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Many countries all over the world are using cryptocurrencies to sidestep the economic sanctions on them. Prime among them being Venezuela, Russia. However, there is no concrete evidence that these countries might be using cryptocurrencies and blockchain to do so. ThereĀ are just some reports that there might be using cryptocurrencies to sidestep these sanctions.

Will some countries adopt crypto mining on a national scale?

Recent reports are doing the round that Russia might go a step further and establish crypto mining farms on a gigantic scale. It will allow the Russian government to earn a significant amount of tax revenue. The ratio is reeling under the economic sanctions. Even though the domestic economy has insulated Russia to a large extent from the sanctions but sooner than later, there might be some impact of the sanctions on the Russian economy. Reports are doing the rounds that to insulate the Russian economy from those effects, Russia is building a cryptocurrency mining perform which can bolster its tax revenue by up to $ 1 billion.

Russia certainly has a significant number of hydroelectric plants all over the country. In some parts, it produces excessive electricity. That is why it definitely has the resources to run those cryptocurrency mining firms. In fact, with the help of such large projects on a national scale, it will be possible for Russia to lower the cost of cryptocurrency mining. When that is the case, the profit which the Russian crypto farms will be able to make will be higher as compared to any other cryptocurrency miner. They will be able to break even at a lower rate. It will ensure that they are more competitive as compared to the other companies which are operating in the cryptocurrency mining space.

The initial investment, however, can be significant. The cost of setting up such a cryptocurrency mining farm and connecting it with the grid will be enormous. The breakeven point might be a couple of years at least if not more. All depends on the scale which the government is adopting to set up these cryptocurrency mining farms.

If they are set up at a large scale, Russia will not only be able to bolster up its tax revenues but also have a significant stake when it comes to hashing power of most of the popular cryptocurrencies. It will once again more cryptocurrencies towards centralization rather than decentralization. However, there is not much concrete information regarding the scale as well as the timeline in which these projects will be set up.

About Riddhi 224 Articles
I am an electronics engineer and follow the crypto space closely.

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