Russian bitcoin (BTC) miners are said to be operating as normal despite the government’s invasion of Ukraine this week.
As of August 2021, miners in Russia accounted for about 11.2% of the global bitcoin hashrate, according to the Cambridge Bitcoin Electricity Consumption Index. this will affect the domestic bitcoin sector and the market. the widest.
While some crypto miners such as Ethereum-focused Flexpool have suspended services in Russia in response to the invasion, BTC mining company Compass Mining has assured customers based in Russia that the mining infrastructure will continue to operate in the region. .
Compass Mining Chairman Witt Gibbs expressed his thoughts and prayers to all those affected by the conflict in a tweet earlier today, reassuring the community that the company’s mining operations in Eastern Europe are safe in Serbia, without any “geopolitical turmoil”.
On Thursday, the Biden administration made it clear that it would impose “widespread economic sanctions and strict export controls” on Russia’s largest financial institutions, the government, senior officials and the technology sector.
In particular, it seems that the severe restrictions will not yet apply to the SWIFT international payment network or cryptocurrency transfers. Many observers have argued that this could be a boom time for the Russian crypto sector, as it could soon become an important tool to circumvent various sanctions.
In an investor briefing earlier today, BTC Bull and Morgan Creek co-founder Anthony Pompliano stressed that the Russian government could use this moment as an opportunity to abandon the US dollar reserve system and support a decentralized currency with global appeal:
“This game theory brings us to Bitcoin. The second best option for the producer and distributor of a global reserve currency is to be the most advanced user and holder of a global reserve currency that is not controlled by a single country.”
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“This stimulus will make these superpowers understand that Bitcoin will be critical in the coming decades,” he said. “Countries that have a large share, along with mining and other activities in support of bitcoin in their country, will have a huge advantage.” is he.
VanEck’s head of digital asset research, Matthew Siegel, echoed Bloomberg’s sentiment, noting that the Bitcoin network would allow Russia to minimize the potential damage caused by its exclusion from the Western financial system:
“Neither dictators nor human rights activists will face any censorship of the Bitcoin network.”