Russian Miners Sell Their Hardware Due to Crypto Plunge
November 28, 2018 1:05 pm
A large number of Russian cryptocurrency miners are looking to sell their hardware. The recent market plunge seems to be the reason for selling mining hardware. The cryptocurrency market price fall has disappointed mining enthusiasts especially those who mine cryptocurrencies in their homes, basements, and garages.
Russia is famously known for amateur mining where electricity rates for individual consumers are considerably low. In some of the Russian region’s prices are currently below $0.01 per kWh. The cryptocurrency market sell-off of the last few weeks has crushed the profitability of small-scale mining operations.
Russian cryptocurrency miners were using GPUs, or graphics processing units to mine altcoins as they don’t require a lot of computing power. Mining hardware prices have also fallen. At the beginning of 2018, the average price of a single mining rig was around 240,000 Russian rubles ($3,500).
According to the reports, 2018 has not been a good year for cryptocurrency investors and miners. The Bitcoin’s price had fallen around 80 percent from last year’s all-time high. Meanwhile, various countries around the world started banning cryptocurrency usages and mining.
Cryptocurrency mining in Russia has expanded rapidly from last few years and has become one of the industrialized businesses. Mining at home had also become a source of income for some crypto enthusiasts. But now Russians are asking themselves whether cryptocurrency mining can continue for much longer.
Cryptocurrency regulations are still in movement in Russia. According to reports claims that “mining” has been removed from the draft legislation on cryptocurrencies. The authorities in Moscow have said that they have a much more positive attitude toward crypto mining than the use of cryptocurrency.