The goal of transforming Russia into an international leader in artificial intelligence (AI) has been proposed as a possible explanation for the Kremlin's crypto mining push.
In response to Moscow's recent decision to restrict mining in several locations until March 15, 2031, tech and blockchain blogger Ani Aslanyan and others commented, according to the St. Petersburg-based news site Delovoi Peterburg.
An AI Incentive for Russia's Crypto Mining Development?
Given that Russia is projected to face a power shortfall "in the next five to ten years," Aslanyan questioned the country's enthusiasm for developing its crypto mining business.
Crypto mining is becoming a "fundamental question of economic feasibility," the media source pondered.
Is it essential to build new power plants for cryptocurrency mining alone? Delovoi Peterburg wanted to know.
Within their professional opinion:
Data centers and mining farms have a lot in common when it comes to the electricity, cooling, and infrastructure needed to run their operations. And places with low-cost power are perfect for data centers.
According to Aslanyan, the Russian government believes that building up AI infrastructure is more important for the country's economy than engaging in cryptocurrency mining. With AI, there are greater benefits in terms of productivity and innovation.
Massive amounts of electricity are needed by AI data centers. These capabilities are on par with what's needed for cryptocurrency mining.
Industrial companies announced their intention to provide Moscow with access to their new, state-of-the-art data centers for "state-run" digital initiatives in the days leading up to President Vladimir Putin's address last year, in which he strongly encouraged regions with "surplus power" to begin crypto mining.
Along with their rapidly expanding cryptocurrency mining capabilities, Russian industrial miners have also mentioned amassing AI resources.
Russian crypto mining giant BitRiver said in November 2017 that the country's newly acquired crypto-keennes may propel it to "global leadership" in artificial intelligence.
According to BitRiver's deputy director-general of communications, Oleg Ogienko:
The introduction of AI initiatives has been seriously bolstered by the solid basis that industrial crypto mining has laid. The potential of Russia's computer power has been greatly enhanced as a result.
A Threat to Moscow from Individual Crypto Miners?
While the government may believe it can regulate AI companies and industrial crypto miners, it may find itself in a bind when it comes to private miners draining power grids.
Cryptocurrency miners in the privacy of their own homes are reportedly allowed to utilize up to 6,000 kWh monthly.
Illegal miners, on the other hand, seem intent on taking electricity from the grid.
In an interview with the same news source, Evgeniya Burova, director of communications for Garantex, said:
There are areas where miners have linked equipment to residential power lines in a big way. As a result, they have taken advantage of the home tariff subsidies.
"Leave the regions where the government has banned mining," Burova said, adding that she would not anticipate home-based miners to do so.
"Companies that engage in large-scale cryptocurrency mining will need to reevaluate their strategies."
Mr. Evgeniya Burova, Garantex's Director of Communications
Senior analyst Nikita Zuborev of BestChange.ru was even more dubious.
Illicit mining organizations' masterminds were already breaching the law before the prohibitions, he added, so changing the laws wouldn't help much.
In areas like Eastern Siberia, "the peculiarities of the internal structure" might lead to "the quality of future inspections" being poor, according to Zuborev. His words were:
#BTC100KTrumpEffect #TrumpBTCBoomOrBust #MicroStrategyAcquiresBTC #BullCyclePrediction #AIAgentFrenzy $BTC $ETH
