In the past few weeks, Russia has demonstrated its criticism towards cryptocurrency miners, Tass, a regional media agency, reported that the States Duma Energy Committee and regulators have collectively sent a letter to the vice president of the nation Tatyana Golikova over the issue of usage of electricity by the miners.
It is worth noting that the lawmakers argued for blocking access of Bitcoin miners to subside electricity, claiming that it is damaging the economy by leveraging power at a low cost.
The sent letter notes that the government should ‘deprive’ access to ‘preferential electricity tariff.’
Boris Gladkikh’s letter also underscores that “interest in crypto mining is growing rapidly,” in the nation, further arguing that mining ” is sometimes carried out using subsidized electricity rates provided by the state.”
It is speculated by the Gladkikh report that, if miners pay at reduced rates or subsidies it spreads negative social consequences.
Is Russia failing to meet the required amount of electricity in the Nation?
According to the data available on Worlddata(dot)info, the yearly electricity consumption of Russia is 1.026 tn kWh, however, its yearly power production is 1.139 tb kWh.
In terms of electricity consumption and production, Russia has maintained its supply and demand, however, the growing cases against digital assets miners have raised speculations that some leading regulators seem to be targeting crypto miners on the verge.
Following the destruction of the Russia and Ukraine war, the global electricity demand was triggered, which led to a major crisis in the border area of both the nations including some other underdeveloped nations.
The ongoing tussle between Russia and Ukraine is termed as one of the major factors that succeeded in pushing the price up, yet a notable growth in gas price of 45 percent has been mirrored.
The ongoing tussle between Russia and Ukraine is termed as one of the major factors that succeeded in pushing the price up, yet a notable growth in gas price of 45 percent has been mirrored.
Earlier on November 20, 2024, Todayq reported that The state tax body of the nation has noted that it has already received 150 applications from firms involved in crypto mining firms.
Over the past few months, Russia has gained major traction from crypto miners, and some leading mining firms have been operating in the nation for a longer time. Experts argue that there are chances the nation might ban activities linked to crypto mining, rather than Bitcoin mining.
The current market value of cryptocurrency mining is valued at over $50 billion which is expected to reach new milestones in the coming future if prices continue to favor the growing trend.
At the time of writing Bitcoin was trading at $103,080.49 with an intraday growth of 6.33% and a weekly growth of 8.10% with a monthly surge of 49.63%.
In the past 24 hours cryptocurrency market capitalization has shown tremendous growth reaching over the milestone of 3.7 trillion with an increase of 3.63%. At the same time, the volume of the broader market grew by 22.97% reaching $358.85 billion, with Bitcoin dominating 55.22 percent of the market.
