GPU Sales For Crypto Mining in Russia Increased By 49%: What Is The Reason For This Hype?
While parliamentarians are deciding in what format the cryptocurrency should function in Russia, local miners do not waste time and massively buy video cards for mining. Will the crypto industry get a new impetus for development in Russia?
Mining GPU sales doubled
Recently in Russia, there has been an increased interest in equipment for mining cryptocurrency. If in 2019 local miners were less active amid restrictions from the government, then in 2020 a “ray of hope” appeared for them to develop their crypto business.
The impetus for the popularization of crypto mining in Russia, oddly enough, was the growth of remote work due to the spread of the coronavirus and massive layoffs in companies. Leading local retailers such as Citylink and Svyaznoy reported that sales of graphics cards and other equipment used for crypto mining skyrocketed in Russia.
According to a Citilink report, graphics card sales rose 49% in August. Previously, the purchasing activity for this product did not go beyond 15-20%, so interest in this topic revived. There is also a positive trend in sales of larger PC hardware. The Kommersant newspaper published a report, according to which, in the period from June to August 2020, retailers sold PC equipment by 470% more than in 2019.
Regulatory uncertainty of mining in Russia
The excitement surrounding the purchase of mining equipment was not only triggered by the increase in the number of freelancers. The impetus for the development of mining was the uncertainty at the legislative level regarding the functioning of the cryptocurrency in Russia. Although in July 2020, the law “On digital financial assets” was adopted, there are many open questions that relate to the regulation of mining and the use of cryptocurrency for transactions.
In the face of regulatory uncertainty, crypto miners decided not to waste time and seize the opportunity to grow their crypto business. But the situation may soon turn not in their favor since today parliamentarians are considering an initiative to amend the main “cryptocurrency law”. In particular, with the initiative of the Ministry of Finance, in the fall, the issue of banning rewards to miners in the form of cryptocurrency should be considered.