Crypto Mining has become a rather regular activity in many nations across the world. Previously an unprecedented activity, it is now a past-time and means of business for many tech-savvy individuals. With the increase in crypto mining, there is a notable increase in the demand for electricity.
This increase in the need for abundant power has attracted many authorities to this issue. Russia is especially focused on this issue as Crypto miners in neighboring Kazakhstan are facing shortages and power cuts. Russia is foreseeing the situation and planning to implement a raised cost on this.
Ways to manage the Energy Crisis
Russian Ministry of Energy has shown a green light on this. The ministry has asked to differentiate the rates of electricity for household usage and for crypto mining.
Another proposed (and likely to be executed) idea is to involve local governors. The government is planning to let the governors decide the maximum amount of power that can be consumed by the citizens – at the residential rates. Individuals or households who will exceed this maximum amount will have to pay higher charges for the used units.
This way, there will be more authority at decentralized levels and the individuals will also have the liberty to optimize their use of energy.
Other than this, there are also protests caused due to the increased use of energy. This change due to crypto mining has disrupted the power usage system – and an intervention by the government is necessary to manage this. This can be quantity control, policy restricting or increased prices. For now, it seems like the price is the prime player in the equation.