The Electrical Needs Of Cryptocurrency Miners Are Increasing Over 18 Times In Russia

Key Points:

• The growing demand for electricity in the crypto mining business may necessitate the development of additional power producing facilities in Siberia.
• Demand has increased in residential areas as well, following the rejection of a proposal by regional authorities to impose higher charges on Russians who mint digital currencies at home.

On January 1, Russian Energy Minister Nikolai Shulginov (Nikolay Shulginov) revealed that as the encryption mining sector expands, cryptocurrency miners in some sections of Siberia are increasingly interested in power. 

To fulfill the electricity of Cryptocurrency Miners demand, new generation capacity may be required. Shulginov did not reveal precise plans, but he did state that the governments of these regions are considering increasing the energy network utilized by mining businesses and constructing additional power plants. Meanwhile, domestic electricity demand has increased as the local administration scrapped an intention to charge higher tariffs on Russians mining at home.

Crypto mining has grown in popularity in Russia, a country with vast low-cost energy supplies and a pleasant climate, as both a successful economic activity and an additional source of income for many ordinary Cryptocurrency Miners in their basements and garages. According to research published in October, bitcoin mining earnings in Russia increased 18 times in four years before the impact of markets and sanctions this year.

At-home mining has been blamed for power outages and blackouts in regions like Irkutsk, Russia’s mining hub, which has some of the lowest electricity rates in the country. The energy ministry supported a proposal to adopt differential pricing, boosting energy costs for amateur cryptocurrency miners in order to curb use, but it was ultimately rejected by local authorities, with the exception of the Kemerovo region.

Deputy Energy Minister Pavel Snikkars stated in early December that the industry’s percentage of Russia’s total power usage might double by 2022. His department and the Bank of Russia endorsed a bill to control cryptocurrency mining, but parliament delayed passage until 2023.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Chubbi

Coincu News