At the Eastern Economic Forum, President Vladimir Putin announced that Russia established itself as a leading nation in bitcoin mining.
He attributed this growth to the country’s energy surplus, comes mostly from Siberia.
We don’t like Bitcoin, but we like bitcoin mining
In his speech, President Putin revealed the factors that make Russia an ideal location for bitcoin mining.
He told that Russia is today one of the world leaders in mining, and this is due to the surplus of energy capacity in Siberia.
Next to recognizing the benefits of bitcoin mining, Putin also warned about the potential bad consequences of expanding these operations in Siberia.
The energy should also be used for other important developments, such as building housing, industrial facilities, and supplying electricity to planned production sites.
“Mining is good, but the construction of housing, industrial and social facilities, and the supply of electricity to planned production facilities is no less, and perhaps more important.”
Mining is industrial process, and an investable operation
The director of the Industrial Mining Association, Sergey Bezdelov shared that Russia mined 54,000 BTC in 2023, generating over $550 million in tax revenue for the country.
Bezdelov believes that this number could rise even more due to the approval of a cryptocurrency mining law, which is expected to attract more new investors to the sector.
Growing industry
Putin isn’t alone with this opinion, his views align with those of Energy Minister Sergei Tsivilev, who explained that the energy surpluses in Russia could be allocated to licensed bitcoin miners now, as the laws allowing that.
But he also told that the priority should be on social development and national industry growth.
As Russia continues to position itself as a leader in bitcoin mining, it may face challenges in managing the various impacts of this industry, and as some experts suggest, it would be better leave the regulation to the real market forces, not politicians.
