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Russian President Vladimir Putin has cautioned of an impending energy problem brought about by the unbridled growth of bitcoin mining in his nation. Emphasizing the enormous power consumption of mining activities, Putin said that these operations account for about 1.5% of Russia’s overall electricity consumption. This translates to a whopping 16 billion kilowatt-hours yearly. The president’s worries center especially on areas like Irkutsk, Buryatia, and Zabaikalsky Krai where power shortages have recently become consistent. While not conventional money, cryptocurrencies are being utilized more and more for international settlements, Putin said, underlining the significant energy consumption involved in digital coin mining. Russia has become a hub for these operations because of its low power prices and the mobility of mining tools. The president warned that unchecked expansion of mining might take its toll on regional power systems to breaking point capacity. Russian President Vladimir Putin. Photo by Natalia Kolesnikova/Pool/AFP via Getty Images Social And Economic Consequences This energy depletion has consequences beyond only running costs. Putin underlined the more general social and economic hazards, pointing out that power shortages might affect businesses, housing and public services systems, and the general growth of towns and cities. The remarks of the president reflect worries expressed by regional leaders stressing the possible disturbances to new businesses, residential neighborhoods, and important social amenities. Total crypto market cap currently at $2.3 trillion. Chart: TradingView “Unchecked increase of electricity usage for cryptocurrencies mining might lead to a power deficit in some locations,” Putin said. Putin On Digital Ruble As Saving Agent Amid the chaos of the bitcoin mining situation, Putin also seized the chance to advance the digital ruble, or central bank digital currency (CBDC), of Russia. Originally started in a test program, the digital ruble has already enabled 7,000 payments for products and services as well…

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Filed under: News - @ July 18, 2024 10:24 pm