Crypto Miners Concerned as Russian Ruble Strengthens by Half

bitcoin mining in russia
When a currency strengthens its positions on the market, it has a negative effect on crypto-related activities. Source: CoinDesk

Source: RBC

When a currency strengthens its positions on the market, it has a negative effect on crypto-related activities. Experts describe the current situation on the Russian market and make prognosis for the near future of crypto mining.

Ever since December 2020 bitcoin has been at the low against the Russian ruble. As of May 25, a bitcoin cost about 1.7 mln rubles, which is 52.45% less than at the very beginning of the year. Back then a bitcoin equaled 3.47 mln rubles. Within the same time, the Russian ruble strengthened against the US dollar by 23.31%, 74.29 RUB per USD back then compared to 56.97 RUB now.

For crypto miners and investors in Russia it is vital to keep track of the ruble-dollar exchange rate. The mining-related expenses such as electricity bills, taxes, equipment, etc. are paid in rubles. Because mining equipment has to be imported to Russia, it is sold at a fixed price in dollars. It means that as the Russian ruble rate strengthens the equipment becomes cheaper for the residents of the ruble zone.

Crypto currency market analysts evaluate the situation and make predictions for the near future of crypto in Russia.

Will Exchange Rate Affect Income in Cryptocurrency?

Nikita Zuborev, senior analyst at, says the conditions are becoming worse for Russian-based crypto miners. Since February 2022 the yield has decreased in half. Given that the mining difficulty is now 130% higher than in 2020 when the same BTC/RUB rate was recorded the previous time, certain difficulties arise in crypto mining.

“We should remember, however, that apart from electricity bills, equipment update makes up a major expense for miners. The equipment is usually ordered from abroad. At the same time, the BTC/USD rate decrease has been a little steadier,” — Nikita Zuborev, senior analyst at

Sergey Arestov, co-founder of BitCluster, warns that in light of recent bitcoin rate changes a large part of mining equipment will lose its cost-efficiency.

“Industrial crypto miners have to think in terms of the long game, and currency rate changes like this make for a perfect opportunity for a discount for those entering the industry. With the changes, the mining equipment costs have dropped in price almost by half,” — Sergey Arestov, co-founder of BitCluster.

That being said, the currency rate has hardly any impact on the mining process as it is only natural for mining difficulty to increase. However, the ruble strengthening against the US dollar will reduce the income for ruble zone based crypto miners.

Miners cannot change the RUB/USD rate, but they can try and reduce the inevitable expenses. Experts advise miners to conclude equipment supply futures now that the costs are so low. However, when it comes to electricity, experts see no obvious legal ways to reduce the financial risks. Investment in clean energy may be an option, but investors have to take a careful consideration of the peculiarities of this industry.