Russia's State-Level Bitcoin FOMO: A Race to Catch Up with the US
CryptoNewsTerminal Staff08 Aug, 2024
Russia's State-Level Bitcoin FOMO: A Race to Catch Up with the US
Russia's state-level interest in Bitcoin has intensified, indicating a "Bitcoin FOMO" (fear of missing out) at the government level. This move is seen as an attempt to catch up with the US, which currently dominates the Bitcoin mining landscape. CryptoQuant CEO Ki Young Ju observed this trend, highlighting Russia's efforts to increase its presence in the cryptocurrency market. Russia's entry into the Bitcoin mining sector is likely to impact the industry in several ways: 1. Increased Hashrate: Russia's participation will contribute to a higher hashrate, further securing the Bitcoin network. 2. Network Strengthening: The diversification of miner policies resulting from Russia's involvement will strengthen the network's resilience. 3. Reduced Chinese Dominance: Currently, China's mining pools control a significant portion (57%) of Bitcoin's hashrate, while the US holds 35%. Russia's entry could potentially reduce this dominance. Earlier in February 2022, Russian President Vladimir Putin signed a law legalizing cryptocurrency mining in the country. This move has paved the way for Russia to establish a regulatory framework for the industry.
