Rising cryptocurrency prices and low electricity rates in some regions of Russia have led to an increased demand for video cards for illegal mining activities.
Reasons for Increased GPU Demand
The sales of graphics processing units (GPUs) in Russia have significantly surged, indicating a rise in illegal cryptocurrency mining. Major retailers like M.Video-Eldorado reported a 233% increase in demand. Experts note that a stronger ruble has made powerful video cards more affordable in the domestic market.
Consequences of Illegal Mining
The increase in GPU sales is viewed as a sign of growing illegal mining activities, which could lead to an energy crisis and escalate the scale of shadow businesses in the country. Analysts expect losses from illegal mining to exceed last year's figure of 10 billion rubles. Vadim Kovalenko, a university lecturer, warns that without established rules and government control, power outages may occur.
Government Measures Against Illegal Mining
The Russian government is taking measures to combat illegal mining. In various regions, including the North Caucasus, bans on mining have already been enacted. Plans are also underway to consider disconnecting even legal crypto farms from the grid during peak hours. Igor Bederov, founder of Internet Search, noted that the Caucasus remains a hotspot for illegal miners.
The surge in GPU demand in Russia highlights the ongoing issues related to illegal cryptocurrency mining and its economic implications. Authorities continue to seek solutions to control the situation.
