A Kremlin official warns that fast Bitcoin mining development may cause an energy deficit in 10 years.
As crypto mining grows, a senior Kremlin official told TASS that Russia might face an energy shortfall in 5-10 years.
Maxim Oreshkin, deputy director of the presidential administration, said that crypto mining in southern Siberia is already straining energy supplies.
Oreshkin said Bitcoin mining has depleted certain portions of Russia's system, but the country has no energy consumption difficulties. Southern Siberia, known for its cheap power, has witnessed tremendous demand on its energy infrastructure as crypto mining has increased.
BitRiver, a sanctioned crypto mining startup, predicted Russia will exceed the U.S. in Bitcoin mining by 2027 in early October. BitRiver CEO Igor Runets said that the country's crypto mining growth rate has mirrored the U.S.'s in recent years, closing the energy usage disparity.
Runets said that changing regulations are forcing oil and gas businesses to rethink their tactics, encouraging cooperation with Russian crypto miners.
Despite Russia's support for crypto mining, the industry has obstacles. Crypto.news said that Russia would soon ban Bitcoin mining in some places owing to a power constraint. According to Russia's Deputy Energy Minister Evgeny Grabchak, the Far East, southern Siberia, and the South have energy shortfalls that prevent major power capacity until 2030.