- Russia expands initiatives to develop computing infrastructure
- Primarily for Bitcoin mining but also to dominate AI
- Russia calls for the use of state-owned russets for this purpose, which some countries are already doing
- Will the BRICS allies be left behind, and is G7 dominance in jeopardy?
CNN aired a wide-ranging discussion of Russia’s ongoing initiative to develop the technical infrastructure for financial independence from the Western world, as well as technological superiority in AI.
Russia also proposes to utilize state-owned resources to produce electrical power to keep this infrastructure running and mining digital gold.
According to Nico Smid, this could be a big boost for BRICS countries like El Salvador, Bhutan, Ethiopia, United Arab Emirates.
Details of the Concerns from CNN
VanEck’s Head of Digital Assets, Matthew Sigel noted:
“There’s tremendous urgency outside of the U.S. to find a way to circumvent the irresponsible fiscal policy that we’ve been running in the US.”
This is, of course, the BRICS alliance, of which Russia is a major contributor, intending to continue to unite the partner countries around abandoning the dollar and developing an alternative financial system.
Russia’s initiatives are expanding, as it announced at the BRICS Business Forum in Moscow, calling for increased computing power for Bitcoin mining and AI, and the use of local resources to do so.
Nico Smid, founder of Digital Mining Solutions, reminded everyone of “Game Theory”, which leaves little chance that the BRICS countries will not join the movement, and Argentina, Ethiopia, and the United Arab Emirates are already doing so.
At first, this was of little concern until the initiatives began to grow and Russia started to introduce legislation.
Now that the initiatives have become sustainable and the contours of the new union have become clear, everyone is beginning to realize how much attention this requires because it potentially exceeds the combined GDP of the G7 countries.
We all realize that a reserve currency is unlikely to hold if the G7 alliance and the U.S. don’t remain the world’s first economy, unless there is a political factor. But the fact is that Russia apparently wants to dominate this BRICS alliance, which is why it’s spearheading key initiatives.
Nico Smid noted:
“It creates opportunities for older mining equipment to remain productive in regions with lower energy costs, where mining at the current location might otherwise be unprofitable.”
But perhaps also because Russia realizes that it cannot be the most profitable in this alliance, as “Russia is no longer a country with abundant, low-cost hydropower-electricity is becoming expensive due to a combination of excessive demand and the ruble devaluation.”
Conclusions
Geopolitical tensions are clearly on the rise, and we see how Bitcoin is increasingly showing its international and decentralized role while politics is fragmented.
Perhaps such a fundamental demand for the main cryptocurrency will take it very high, although not everyone will be happy about such occasions to do so.
It also comes against the backdrop of the approaching culmination of the U.S. elections. It will largely determine the regulations and vectors of development for the entire world because the U.S. remains in charge and is not going to give up positions. Stay tuned.
