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The Cambridge Bitcoin Electricity Consumption index reported that miners in Russia contributed around 11.2 percent of the worldwide BTC hash rate in August 2021. Reports state that three nations account for more than half of the Bitcoin network’s computational power: the United States, Kazakhstan, and Russia. Now, the latter state is at war with Ukraine, causing crypto industry observers to keep a close eye on the network for any disturbances. With the United States and NATO allies imposing sanctions on the Russian government, it is uncertain how the local Bitcoin industry and the larger economy will fare. While some cryptocurrency mining companies, such as Ethereum-focused Flexpool, have suspended operations in Russia due to the invasions in Ukraine, BTC miners Compass Mining has guaranteed to clients hosted in Russia that its mining equipment will stay operating in the territory. The Editorial Director of Compass Mining, Will Foxley said,
“Much of Russian bitcoin mining is powered by domestic natural gas in Siberia. It’s unlikely that hash power goes offline unless sanctions influence pool providers.”
Compass Mining CEO Whit Gibbs sent his condolences and prayers to all those affected by the ongoing armed conflict. Earlier today, Twitter assured the community that its Eastern European operations are secure in Serbia, far from any 'geopolitical unrest.' https://twitter.com/BitcoinBroski/status/1496883549533659143?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1496883549533659143%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Frussian-miners-keep-running-may-pivot-to-bitcoin-in-response-to-sanctions On Thursday, the Biden administration said that it will impose 'sweeping financial sanctions and stringent export controls' on Russia's major financial institutions, government, officials with high-ranks, and the technology industry. It appears that the stringent limits will not yet apply to the international payments network SWIFT or cryptocurrency transactions. Many observers believe that this is a period in which the Russian crypto industry will thrive, as it will soon become a major instrument for circumventing different restrictions. BTC bull and Morgan Creek digital co-founder Anthony Pompliano stressed in a newsletter to investors earlier today that the Russian government might utilize this opportunity to shift away from the US dollar reserve system and embrace a decentralized currency with a global appeal.
“The next best option to being the producer and distribution of the global reserve currency is to be the most advanced user and holder of a global reserve currency that no single country controls.”
He further added,
“Bitcoin will be essential for decades to come. The countries that have a large ownership stake, along with conducting mining and other pro-bitcoin activities within their country, will have a significant advantage.”
VanEck's head of digital assets research Matthew Sigel had similar comments, stating that the Bitcoin network will allow Russia to mitigate the possible harm caused by being cast out of the financial system of the Western.
“Neither dictator nor human rights activists will encounter any censor on the Bitcoin network."