Experts: Cryptocurrencies are most actively mined in Tomsk

The most favorable region of Russia for cryptocurrency mining turned out to be the Krasnoyarsk Territory with its cheap electricity, developed telecommunications and transport, experts have found out. At the same time, more mining is done in the Irkutsk, Novosibirsk and Tomsk regions.

The Russian Association of Cryptocurrency and Blockchain (RACIB) conducted a study on the attractiveness of Russian regions for cryptocurrency mining. Experts compared the territories according to such parameters as the cost of electricity, the availability of reserves of free capacity, logistics accessibility and the development of telecommunications infrastructure.

The best ratio of these parameters was found in the Krasnoyarsk Territory, RACIB President Yuri Pripachkin told RBC. The cost of electricity in this Siberian region is 2.41 rubles. per kW/h. Despite the fact that the figure is higher than in Khakassia (2.01 rubles) and the Irkutsk region (2.14 rubles), in three cities of the region - Krasnoyarsk, Divnogorsk and Zheleznogorsk - options for placing mining farms have optimal logistics parameters and telecommunications capabilities.

Krasnoyarsk Territory is a major transport, distribution and transit hub of the Siberian Federal District. In addition, it is possible to use Yenisei water to cool the coolant in cooling systems of mining farms, the specialized association noted.

Despite favorable conditions, almost no one is engaged in mining in the Krasnoyarsk Territory. The main farms in Russia are located in Moscow, Moscow, Leningrad, Novosibirsk, Irkutsk, Sverdlovsk, Tomsk and Chelyabinsk regions, in Tatarstan, RACIB explained. These regions are centers of information technology competence in the country.

Central Bank Chairman Elvira Nabiullina said at the Moscow Financial Forum in September 2017 that cryptocurrencies would not be allowed on the Russian market as money surrogates, comparing the rapid development of the industry to a “gold rush.”

Cryptocurrencies are electronic money that are created by private computer systems without the control of central banks (currency accounting is decentralized). Cryptocurrencies have no physical analogue; they exist only in virtual space.

Bitcoin is the first and most famous of many cryptocurrencies. With its help, you can easily transfer money online while remaining anonymous—the payment cannot be linked to a specific sender. In 2015, Roskomnadzor, by court decision, blacklisted Bitcoin websites. Thus, Russia recognized Bitcoin as a money surrogate.

The essence of mining (from the word mining - extraction) is the creation of cryptocoins using a special algorithm. A unique set of data (or block) is generated on the computer, which confirms the authenticity of payment transactions. A block consists of a hash of the previous block's header, a hash of transactions, and a random number. The chain containing all transactions is called a blockchain.

For each block found there is a reward. It is different for different currencies. For example, for Bitcoin it halves every four years. Since 2016, the reward has been 12.5 BTC (about 32 thousand dollars); in 2020, its next decrease will occur ( data from lifehacker.ru).

The success of mining depends on the computing power of the computer that the miner has. The more, the higher the likelihood of receiving a reward.

To start mining, a person or organization needs to purchase special equipment. According to the Russian Mining Center, the cost of the most popular one from the Chinese Bitmain is $2.5 thousand, and its payback period is about 12 months. In addition, the costs of setting up the process include depreciation, electricity, rent and operating expenses.