Despite the Russian government's rather ambivalent attitude towards the cryptocurrency industry in general, citizens seem to be attracted to the benefits it offers. As a result, the demand for mining equipment continues to soar.

Compared to the beginning of 2022, it has increased by 1.5 times, according to TASS. The search volume has increased by 46%. Citizens who want to build their own mining farms most often buy ASIC Antminers, Nvidia and Radeon graphics cards. However, the latter are also commonly used by gamers, so it is difficult to determine the exact percentage of cards purchased for mining.

The increase in demand has led to higher prices. Since December 2021, miner prices have increased by about 15%. The price of graphics cards has increased by an average of 20%. However, higher prices are not the only result of this increase.

As previously reported by the world blockchain news outlet CoinIdol, the increase in citizen interest has caught the attention of scammers. They create false advertisements for the sale of mining equipment and then disappear with their customers' money. By the end of 2021, users lost about 2.5 million rubles ($30,000) in such schemes.

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Good environment

An oversupply of energy and favorable prices make Russia very attractive to cryptocurrency miners. In fact, the country is now the second most capable mining country after Kazakhstan's political turmoil. However, most miners prefer to work illegally, without paying taxes or even paying for the electricity they use.

This, in turn, has raised government concerns. Combined with the hostility of Russian banks, this has sparked speculation of a possible total ban on the industry. However, the government does not seem to share this hostility. For example, the Ministry of Finance denies the possibility of a total ban because of the many negative effects it could have on the national economy. Instead, they believe that the cryptocurrency industry should be regulated.

Russian President Vladimir Putin also holds such a position. In a video conference with the government, he instructed MPs to join forces with the Bank of Russia to create reasonable regulations that will benefit both the country and its citizens. Well, the fact that people are actively getting into cryptocurrency mining proves that the regulatory framework is necessary and the ban could have a huge impact on the national economy.