September 26, 2022

Vasily Shpak: “Miners burn more electricity than all agriculture”

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Vasily Shpak: “Miners burn more electricity than all agriculture”

The Deputy Head of the Ministry of Industry and Trade of the Russian Federation announced that the extraction of digital currencies takes 2% of the total amount of electricity consumed.

Vasily Shpak in an interview with Interfaxsaid that, according to his data, miners spend several times more electricity than agriculture consumes, so the market urgently needs regulation.

The official said that the authorities could not recognizemining is an industrial activity or a branch of the economy. Mining of digital currencies is currently in a "grey zone", is not taxed and creates risks for the people who do it. According to Shpak, this activity needs to be taken out of the gray zone, rules should be developed and the industry should be made clear and transparent to the authorities.

“Yes, most likely for mining in the near futureless energy will be spent in general, because the world in terms of digital currencies is moving to other, less expensive protocols. But nevertheless, it is obvious that these are calculations, they will consume energy one way or another. Here our position is absolutely unambiguous: mining must be recognized, regulated and built into industrial activity.”

According to the Cambridge Consumption Indexenergy by bitcoin miners, Russia ranked third in terms of mining, but recently dropped out of the top 3 countries in the world. Now Russian miners generate about 4.7% of the total hashrate of the Bitcoin network. The United States remains in first place with 37.8%, China and Kazakhstan take the second and third places, respectively.