Putin Warns Bitcoin Mining Could Cause Power Shortages in Russia

Russian President Vladimir Putin has raised alarms about the unchecked growth of Bitcoin mining in Russia, warning it could lead to significant power shortages.

In a recent discussion with senior officials, Putin expressed concerns that the surge in mining activity might overwhelm the country’s power supply, leading to outages in several regions.

Bitcoin mining, known for its high energy consumption, currently uses around 16 billion kilowatt-hours per year in Russia, which constitutes about 1.5% of the nation’s total electricity. The low cost of electricity and easy access to mining hardware have contributed to this rapid increase.

Despite stringent cryptocurrency laws, Russia became the second-largest Bitcoin mining center globally in 2023. This rise has heightened anxieties among regional leaders, particularly in areas like Dagestan, where outdated infrastructure has already led to frequent power cuts.

Putin has called for new regulations to manage the mining boom and prevent potential disruptions to electricity supply, emphasizing the need for federal oversight to safeguard against future energy crises. This move comes amidst recent power shortages exacerbated by issues at the Rostov nuclear power plant, illustrating the urgent need for regulatory measures in the face of growing mining activities.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.