Local news agency Kommersant reported that cryptocurrency miners in Russia are hoarding ASIC devices.
Cryptocurrency miners in Russia appear to be unconcerned by the ongoing crypto mining crisis, as local demand for mining hardware has increased in Q4 2022.
Some cryptocurrency mining hardware distributors in Russia have faced a significant spike in demand for application-specific integrated circuit (ASIC) chips, designed for mining, local news agency Kommersant reported on December 1st.
Local distributor Chilkoot reported that its ASIC sales in October and November surpassed all those made in Q3. In the last nine months, the distributor sold 65% more hardware than in 2021.
“We are working with legal entities, and we see that they started buying 30% more equipment in a single transaction than at the beginning of the year,” said Chilkoot development director Artem Eremin.
“It’s Too Dangerous to Invest in Cryptocurrencies Today,” said Mark Mobius
In a recent interview, Mark Mobius, billionaire investor and Co-Founder of Mobius Capital Partners, offered his thoughts on current events in the cryptocurrency market, asserting that the crypto winter will intensify, causing the price of Bitcoin to fall to $10,000.
In this sense, the investor, already recognized as a cryptoskeptic, said that currently the sector is “too dangerous” for anyone to invest. He also pointed out that cryptocurrencies are here to stay, since there are investors who still have faith in them.
Likewise, Mobius noted that despite the risks and volatility associated with the FTX drama, the industry is likely to survive the fallout. In addition, he stated that he found it “surprising” that the price of Bitcoin has held up as well as it has until now.
Tether Responds to WSJ, Claiming Its USDT Loans Are “Over Collateralized”
Tether has stated that its collateralized loans are heavily collateralized, in response to a recent report that there are problems in the sector caused by Tether.
The Wall Street Journal notes in its report that Tether has not disclosed its loans issued for USDT stablecoins. Also, it questions its longer-term liquidity to meet repayments.
Concerns arise after one of the largest cryptocurrency exchanges, FTX, filed for Chapter 11 bankruptcy. WSJ stresses that the subsequent market crash could have diluted Tether’s collateral.
Tether has a long history of trouble with regulators. Questions about Tether reserves arose even around the Terra (LUNA) crisis and the 3AC-led market crash.
Incidentally, according to BitRiver financial analyst Vladislav Antonov, cryptocurrency mining in Russia has grown in the midst of the current market situation, as the demand for ASIC equipment has increased due to falling purchase prices.
The expert explains that an entry into mining during a bear market can potentially generate “significant profit of tens of percentage points” over a three-year period.
By Audy Castaneda