Thursday, July 25, 2024

The Russian region is struggling to meet the energy demands of Bitcoin mining.

A local area is trying to preserve electricity safety as major crypto mining companies flood the country as mining becomes more widespread in Russia. Mining activity in the Irkutsk Province, a regional district and Russia’s principal center of shipping routes via China, resulted in a 4-fold rise in electricity use last year. This is according to the Russian media outlet TASS.

Why did this happen?

This has been linked to the mining ban in China as well as a major rally supporting the use and mining of cryptocurrencies in 2021. Cryptocurrency mining facilities are being set up by residents at their homes, resulting in higher electricity use and daily energy disruptions.

The increase in electricity demand was also linked by Oleg Prichko, head of Baikal Energy Company, to the growing popularity of localized mining activities. The fresh data came weeks since Irkutsk officials initially announced a substantial rise in power consumption last year. It was blamed on the enormous expansion of mining activities brought on by the departure of Chinese miners. Late last year, the Russian Ministry of Energy said it was currently developing a structure to separate prices among crypto miners and general users.

A key regional energy provider called Irkutskenergosbyt is said to have initiated more than a hundred cases targeting clients who used discounted energy to manufacture cryptocurrencies in underground and yard mining sites. According to reports, the corporation hopes to be compensated for sixty-three million rubles.

The report came following Vladimir Putin’s statement that Russia’s abundant power gives it a “strategic edge” in cryptocurrency mining. The Russian Government established a working committee in November last year to develop laws for the cryptocurrency mining industry.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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