China’s bitcoin miners’ exodus impacts Russia’s energy sector

The mining of Bitcoin and other cryptocurrencies could be subject to special rates for electricity service in Russia. This was stated by the head of the Russian Energy Ministry, Nikolai Shulginov, this week.

“To maintain the reliability and quality of the electricity supply, we believe that it is necessary to exclude the possibility that miners consume electricity at rates for the population,” Shulginov commented during an event. the local RBC medium.

The Russian government spokesman assured that they cannot allow the miners to “worsen the situation at the cost of reduced rates for the population,” referring to possible power outages in certain regions of the Eurasian giant.

Previously, the governor of the Irkutsk region, Igor Kobzev, had expressed concern about the activity of the miners and the presumed impact they would have on the region’s electricity supply. Specifically, he referred to the overloading of power lines and the risk of accidents in power plants, reported the same Russian media.

Irkutsk has the lowest fees in the country, so it can be considered a prime area for those who want to mine bitcoin and other cryptocurrencies in Russia. But the possible new measure to increase rates to miners outlined by Minister Shulginov would seek to end that advantage.

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Exodus in China, miners distributed around the world

The Russian government’s concern comes amid a wave of migration from Bitcoin miners who have left China in recent months. The prohibitions in the Asian nation have pushed those who are dedicated to this activity to seek new horizons, among which some seem to have opted for Russian soil.

Recent reports suggest that at least 30% of the power of Bitcoin mining is now concentrated in the United States, as reported by CriptoNoticias.

Meanwhile, the Bitcoin network has regained the mining power it had lost following confiscations and closures of mining farms in China. The Asian giant was previously the country with most of the processing power of the miners concentrated in its territory.

Now, the Chinese government not only prevents this activity, but also persecutes the miners as a kind of criminal hunt.

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