Russian miners continue to operate, and may pivot to Bitcoin as a response to sanctions

Despite the invasion of Ukraine by the government this week, Russian Bitcoin ( Bitcoin) miners continue to operate as before

According to estimates compiled by the Cambridge Bitcoin Electricity Consumption Index (August 2021), Russian miners accounted for 11.2% of global Bitcoin hash rates. It is not clear how sanctions against the Russian government, as well as those of allied NATO countries, will impact the local BTC market and wider market.

Some crypto mining companies, such as the Ethereum-focused Flexpool, have stopped their services to Russia as a result of the invasion. However, Compass Mining confirmed to Russian customers that its mining infrastructure will continue to be operational in the region.

Whit Gibbs, CEO of Compass Mining, expressed his condolences to those affected by the conflict via Twitter. He also assured the community that its mining facilities in Eastern Europe were safe in Serbia and that there is no geopolitical unrest.

On Thursday, the Biden administration stated that it would impose “sweeping foreign sanctions and stringent export control” 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. Many observers believe that this could be the time when the Russian cryptocurrency sector thrives and could become an important tool for sidestepping various sanctions.

BTC bull co-founder Anthony Pompliano , Morgan Creek digital founder, highlighted the possibility that the Russian government could take advantage of this moment to move away from the U.S. Dollar reserve system and return to a decentralized currency with global appeal in a newsletter to investors today.

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.

Related: Twitter users request that the Ukrainian Armed Forces accept crypto donations

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 of digital assets research, echoed 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 west financial system.

“Neither dictators nor human right activists will face any censorship on the Bitcoin network.”

Opinion writer on 7trade7