A hidden underground cryptocurrency mining facility has been discovered in the Dagestan region of Russia, Reuters reported on September 24. Despite the growing adoption of cryptocurrencies nationwide, some mining operations are literally going underground to escape scrutiny.
Serious disruptions in the energy network
The illegal mining operation has led to serious disruptions in the region’s energy grid. A recent fire in Makhachkala, the capital of Dagestan, caused by an overloaded power grid, has further increased concerns about these operations.
Dagestan Prime Minister Abdulmuslim Abdulmuslimov has therefore called for stricter controls on crypto mining in the region to reduce the impact on energy supplies.
Cryptocurrencies Allowed for International Trade
The Russian government has now officially allowed cryptocurrencies to be traded internationally, as approved by the State Duma in July 2024. This is seen as a way to circumvent sanctions, but the mining industry is under pressure. Rising energy costs and the recent Bitcoin halving in April have severely affected the profitability of mining companies.
According to analysts at JPMorgan, it will cost around $45,000 to mine one Bitcoin in May 2024, making the industry vulnerable. The future of crypto mining in Russia remains uncertain, despite the increased state adoption of digital currencies.
Source: https://newsbit.nl/ondergrondse-cryptocurrency-miners-ontdekt-in-dagestan-strengere-maatregelen-in-aantocht/
