Biden moves Bitcoin while Putin warns Russians who illegally mine for crypto coins

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Last Updated on 22 July 2024 by CryptoTips.eu

Joe Biden’s decision to drop out of the presidential race immediately moved Bitcoin after the news broke, sending it down about $1000. Afterwards, the largest digital currency stabilized. It is still unclear who will succeed him as presidential candidate, although he himself expressed his support for Kamala Harris.

At the time of writing, Bitcoin is trading for $67,800.

Meanwhile, in Russia, President Putin is faced with a completely different problem.

With an economy that has shifted from an energy producer to a war footing (aiming to produce as many tanks and weapons as possible), the life of the average Russian has changed drastically in recent years (ever since the start of the war in Ukraine). In order to earn some extra cash, many of them have switched to illegal crypto mining.

That is not allowed without the necessary license, but as the energy for it is very cheap (Russia only sells its oil to countries like China, India and Iran) and it is a fairly large country, it will take some time before the government finds you if you decide to do so anyway.

The problem is that the scale of the illegal operations has by now become so large that 2% of Russian energy is used to mine for Bitcoin.

Putin warned the Russian population last week during a meeting with some of his governors that those doing so illegally would be persecuted.

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In terms of crypto mining in 2023, Russia the second largest producer last year behind the United States. Strange thing is that Russia has very strict legislation with lengthy penalties for uncontrolled or unauthorized crypto mining operations.

The previous leaders in the field of crypto mining, China and Kazakhstan, also imposed increasingly strict regulations in recent years.

China did this in 2021, when it imposed a complete ban on crypto mining on its territory. Many Chinese companies moved to Kazakhstan and the United States (especially Texas) and continued there. Kazakhstan, in turn, restricted crypto mining in 2023, although it is still allowed with the correct licenses.

Many Chinese who had traveled to Kazakhstan in 2021 to mine for crypto moved again, this time to the Dagestan, a remote province of Russia. Recently, power outages in small villages in Dagestan have become more frequent, because some of the new immigrants are mining for Bitcoin.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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