According to reports, Russian Bitcoin (BTC), miners continue operating as before despite the invasion of Ukraine this week.
According to the Cambridge Bitcoin Electricity Consumption Index, Russia’s miners accounted for 11.2% of the global BTC haveh rate as of August 2021. It is not clear how sanctions against the Russian government will affect the local BTC sector or the wider market, as they are imposed by the U.S. and NATO allies.
While Flexpool, a crypto mining firm that focuses on Ethereum, has ceased operations in Russia due to the invasion of Russia, Compass Mining, a BTC miner, confirmed to Russian customers that it will continue to operate in the region.
Whit Gibbs, Compass Mining CEO, expressed his condolences to those affected by the conflict via Twitter. He also assured the community that its facilities are safe in Serbia and that there is no geopolitical unrest.
I want to assure our Russian customers that we are always in touch with them. They are located in Siberia, well-isolated from any geopolitical turmoil. Compass has confirmed to our partners that all miners remain safe and will continue operating as usual.
Whit Gibbs (@BitcoinBroski), February 24, 2022
On Thursday, the Biden administration stated that it would impose “sweeping financial sanctions” and “stringent export controls” on Russia’s top financial institutions and government officials.
It appears that the restrictions on cryptocurrency transfers and international payments network SWIFT are not yet in place. Many observers believe that this could be the time when Russia’s crypto sector blossoms, as it could become an important tool for avoiding various sanctions.
Anthony Pompliano, co-founder of BTC bull and Morgan Creek Digital, stated that the Russian government could take this opportunity to move away from the US Dollar Reserve System and return to a decentralized currency that has global appeal.
This game theory leads to Bitcoin. To be the world’s largest producer and distributor of global reserve currencies, the next best option is to be the advanced user and holder a global reserve currency that not one country controls.
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This incentive makes it possible for these superpowers realize that Bitcoin will become an essential part of our lives for many decades to come. He said that countries with large ownership stakes, as well as the ability to conduct mining within their country, will enjoy a significant advantage.
Matthew Sigel, VanEck’s head for digital assets research, shared similar sentiments with Bloomberg. He noted that Russia will be able to use the Bitcoin network to mitigate the potential damage caused by being excluded from the Western financial system.
“Neither dictators nor human right activists will face any censorship on the Bitcoin network.”