Since the beginning of 2024, the global cryptocurrency market has experienced significant fluctuations, particularly with Bitcoin. In January, Bitcoin's value ranged between $39,000 and $49,000, but by March, it surged to an unprecedented $74,000 before settling around $58,000. This volatility is primarily attributed to the launch of Bitcoin ETFs, which sparked increased investor interest. However, subsequent declines were influenced by factors such as anticipated interest rate cuts in the U.S. and instability in stock exchanges.
Experts like Oleg Kalmanovich from Neomarkets and Alexander Razuvaev from the Guild of Financial Analysts highlight that Bitcoin's price is largely driven by speculative demand, making it a risky asset. The unpredictable nature of cryptocurrency values complicates mining operations, as the required computational power has dramatically increased over the past year, now nearing 93 trillion calculations for adding a new block to the blockchain. With mining rewards decreasing over time—from 50 bitcoins per block in 2009 to just 3.13 in 2024—profitability in this sector is increasingly challenging.
In Russia, President Vladimir Putin's recent law on industrial cryptocurrency mining aims to regulate the sector, allowing only registered entities to mine. While this could generate significant revenue for the government, experts caution that the high volatility and operational costs make mining a risky venture, primarily suited for large, financially stable companies. As the cryptocurrency landscape evolves, potential miners must weigh the risks against the potential benefits.
