Ruble rate and miner’s income
Strengthening of the national currency means bad news for crypto assets. Experts explained how it works and what miners and investors should know.
For now BTC has the weakest position to ruble since December 2020. At the beginning of 2022 the cost of the first cryptocurrency was 3.47 millions but yesterday the rate was only 1.65 millions. It means 52.45% declining. At the same time the ruble increased 23.31% to the dollar.
In Russia all expenses like taxes and electricity are in rubles for all types of business including miners or crypto investors. From the first side the profit directly depends on the token’s rate. But from the other, all equipment is imported from other countries and its cost is fixed in USD. Does that mean that the crypto business will become more profitable in Russia? Experts gave some explanations about the situation.
Nikita Zuborev (BestChange.ru) said that positions of russian miners worsened greatly because of increasing the BTC-mining difficulty and declining the purchasing capacity of the ruble. He advised to not forget about equipment renewing and its importance for miners but the rate BTC/USD hasn’t decreased a lot.
The same opinion has Sergey Arestov who noticed that now a lot of machines are just unprofitable. He admitted that industrial miners are thinking about the future when they’ll be able to enter the field at a discount because of declining equipment cost.
Vladislav Antonov said that miners who work in the ruble area have faced the problem of income decreasing because it depends on electricity cost, hashrate, fees for the block etc. All these items are calculated automatically.
Nikita Zuborev advised to make futures contracts for machinery at today's prices as well as provide all other payments. He admitted that there are no legal ways to decline it.