An increasing number of Russian miners are trying to sell their hardware. The recent market correction has reduced the profitability of digital coinage, especially for fans who are digging into their homes, basements and garages.
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Russian miners selling used hardware
Amateur extraction was very popular in Russia, where electricity prices for individual consumers are quite low. In some Russian regions, prices are currently lower than $ 0.01 per kWh. The collapse of cryptocurrency sales in recent weeks, however, has compressed the profitability of small-scale mining operations, as the value of most cryptocurrencies has declined significantly.
In just two days last week, the number of ads selling second-hand equipment increased by 25%, according to data shared by the popular Russian online market Youla. But from the beginning of the year, the search for video cards on the platform has decreased by almost a quarter, according to the Russian newspaper Izvestia.
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GPUs, or graphics processing units, are used to extract some of the altcoins that do not require large computing power. However, from the beginning of the year the demand has decreased by about 2.5 times for the GPU mining platforms and Youla has noticed a threefold decrease in the number of searches this year for more specialized equipment, such as the platforms with application-specific integrated circuits (ASICs), which are able to extract cryptocurrencies that require more hashing power.
Even mining hardware prices have fallen significantly. The average price of a single mining platform was around 240,000 Russian rubles (~ $ 3,500) in January, but now they sell for only 150,000 rubles (~ $ 2,200), or about 37.5% less.
This year has not been particularly kind to cryptocurrency investors and miners, with the price of BTC falling 80 percent from last year's historical highs. Degressive returns forced some miners to cease operations, with a series of media reports from China referring to companies selling their equipment.
Cryptocurrency extraction in Russia has increased rapidly in recent years; in many respects, it has already become an industrialized business. Domestic extraction has also become a source of income for a number of cryptic enthusiasts. But many Russian miners have begun to wonder if they can continue to work for much longer, with their profits slipping.
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Mining operations, like many activities related to cryptocurrency, are not yet regulated in Russia. According to recent reports from Moscow, the term "mining" has been abandoned by the bill on digital financial resources that is currently under revision in the Russian parliament. This means that mining may remain unregulated for some time.
In general, the Moscow authorities have indicated that they have a much more positive attitude towards encryption than the use of cryptocurrency in general, since mining does not contradict Russian law. Proposals have been made to introduce a preferential tax regime and even tax breaks for miners in the energy-rich country. Digital currencies, on the other hand, are considered "money substitutes", which are illegal under current Russian legislation.
Do you think that amateur mining can still be profitable? Share your thoughts on the topic in the comments section below.
Images courtesy of Shutterstock.
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