What happened?
Demand for hardware in traditional Bitcoin mining hotspots, like Siberia and the North Caucuses in Russia, is decreasing. Instead, urban areas are seeing an increase in demand with Moscow and the surrounding region now responsible for 21.9% of mining hardware purchases. Despite this shift to urban areas, crypto miners are facing new problems including legal and capacity issues.
Who does this affect?
This shift affects both crypto miners and the residents of these urban areas. Miners must cope with changes in regulations and increased competition, while residents face potential challenges such as high noise levels from mining facilities. The trend also impacts the manufacturers and sellers of mining hardware as their customer demographics and behaviour change.
Why does this matter?
The relocation of miners to larger urban areas could have significant implications for the cryptocurrency market as a whole. Shifts in mining locations might impact network stability and could affect cryptocurrency prices in the long run. Furthermore, the growing trend could shape future regulations and policies related to cryptocurrency mining, especially in countries with large crypto economies like Russia.