Vladimir Putin says stop to Bitcoin mining!

Russian President Vladimir Putin recently expressed concern about the unregulated rise of bitcoin mining activity in Russia. During a meeting with senior government officials, Putin warned that the increase could lead to widespread power outages in some regions of the country.

Bitcoin Mining: An Energy-Intensive Activity?

Bitcoin mining is an extremely energy-intensive activity. In Russia, it consumes an average of 16 billion kilowatt-hours per year, or about 1.5% of the country’s total electricity consumption. This consumption continues to increase due to the relatively low cost of electricity in Russia and easy access to mining equipment.

Despite restrictive cryptocurrency laws, Russia has become the second-largest cryptocurrency mining country after the United States in 2023. However, this rapid growth is raising concerns among regional authorities. Particularly in the North Caucasus republic of Dagestan, which faces long power outages largely due to aging infrastructure.

Putin stressed that the uncontrolled increase in electricity consumption for bitcoin mining could lead to power shortages in some regions, depriving new businesses, residential areas and social facilities of electricity. He also mentioned that this could delay promising investment and infrastructure projects.

Putin’s offensive!

To address this situation, Putin has ordered tax and tariff regulations to curb miners and called for a strict federal law to address the problem.

Putin’s recent decision to regulate bitcoin mining comes as Russia has been forced to cut off power in several regions due to a problem at the Rostov nuclear power plant. This highlights the energy challenges the country faces and the importance of making systematic and timely decisions to regulate this activity.

Putin’s stance on bitcoin mining reflects growing concern about Russia’s energy stability and the need to regulate a booming industry to avoid major disruptions to the country’s electricity supply.

Eddy S.

The world is changing and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in everything that is closely or remotely related to blockchain and its derivatives. To share my experience and promote a field that fascinates me, there is nothing better than writing informative and relaxed articles.

DISCLAIMER

The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.