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    Energy Crisis Looms: Dagestan Pleads with Crypto Miners Amid Blackout Concerns

    To prevent power outages and blackouts, the power authority of Dagestan, a Russian republic, has reached out to cryptocurrency miners urging them to shut down their mining equipment during the winter season.

    According to the company’s statement, a distressing circumstance is currently developing across various regions of Makhachkala, described as a particularly challenging situation that arises during the cold season.

    Makhachkala once referred to as Port-Petrovsk, stands as the chief city of Dagestan, sheltering approximately one million inhabitants.

    Dagestan Battling with Crypto Mining Issues?

    The analysis conducted by the provider indicated notable surges in network load within brief periods, according to their statement.

    Dagenergo has stated unequivocally that the load can be attributed to mining farms, according to the firm’s assertion.

    In its statement, the energy company revealed that its team of experts was diligently involved in the process of pinpointing the exact whereabouts of the farms. The company further highlighted its accomplishment of successfully dismantling a total of 13 crypto-mining centres during the year 2023.

    During the period spanning from August 2022 to the first half of 2023, PAO Rosseti, the state-owned power company in the Northern Caucasus, announced the closure of 36 unlawfully operated cryptocurrency mining facilities located in the Republic of Dagestan.

    According to Rosseti, the farm owners have been utilizing illicit grid connections, resulting in a significant loss of 157.95 million rubles, which is equivalent to approximately $1.8 million.

    Abkhazia, the de facto South Caucasian republic, has been plagued by energy-related distress for numerous years due to the illicit practice of crypto mining.

    In the recent past, local authorities have conducted surprise inspections of industrial establishments and residences without prior notice in their efforts to curb illegally operated cryptocurrency miners.

    Frequently Asked Questions:

    Why does the power provider in Dagestan ask crypto miners to turn off their rigs?

    Dagestan’s government-operated electricity supplier has called upon cryptocurrency miners to cease operations to avert power shortages and blackouts throughout the winter season. Makhachkala, the capital city, is confronted with a complex predicament, specifically within numerous sectors of the urban area.

    How does the energy provider substantiate the correlation between cryptocurrency mining and the energy crisis?

    Dagenergo, the energy supplier, examined the fluctuations in network demand and noticed abrupt surges occurring within brief intervals. It was determined that these sudden peaks were directly linked to the operation of mining facilities. Consequently, Dagenergo officially appealed to miners, urging them to temporarily halt their mining rigs.

    What measures is the energy company taking to tackle the challenge of cryptocurrency mining in Dagestan?

    Dagenergo’s team of experts is engaged in ongoing efforts to detect crypto-mining facilities. As a strategic initiative to address the effects of mining on the power grid, the company has successfully dismantled a total of 13 crypto mining centres by 2023.

    Has the government previously implemented measures to combat illegal cryptocurrency mining in Dagestan?

    In the Republic of Dagestan, 36 unauthorized cryptocurrency mining farms were discovered and subsequently shut down by the Northern Caucasus division of the state-operated power company PAO Rosseti in August of the preceding year. These illicit operations were powered through unauthorized grid connections, causing extensive harm amounting to 157.95 million rubles (equivalent to approximately $1.8 million).

    What is the extent of the influence of illicit cryptocurrency mining on different regions, and what actions are being implemented to address this issue?

    The issue of energy-related problems has appeared in numerous regions, e.g., Abkhazia, as a result of illegal cryptocurrency mining. However, the local authorities have started performing surprise inspections not only at manufacturing grounds but also at residential ones to suppress illegal crypto mining.  These actions reflect a wider endeavour to tackle the problems linked to unauthorized mining activities.

    What is the size of influence on Dagestan’s capital city Makhachkala population of energy crisis?

    One of the largest cities in Russia, Makhachkala with nearly one million population suffers from an energy crisis currently. To deal with this dire situation, the power supplier is currently undertaking an action that entails actively calling upon cryptocurrency mining to shut down their equipment so they do not receive power outages.

    In efforts to detect and combat crypto mining farms, what particular measures has Dagenergo undertaken?

    To tackle the energy crisis, Dagenergo’s experts are diligently engaged in detecting crypto-mining farms. Interestingly, beginning in 2023, the company managed to close down thirteen of these facilities. These efforts are part of a coordinated effort designed to reduce the strain on the grid that results from mining cryptocurrency. 

    How does the power grid in Dagestan suffer from illegal cryptocurrency mining?

    Dagenergo’s examination of the fluctuations in network load exposes a direct correlation between rapid surges and the operation of mining farms. To stop global energy deficits, the power supplier called for a short-term moratorium on mining rig operations.

    How will crypto miners be processed if they refuse to follow the instructions of shutting down their rigs?

    Although the article does not directly state any legal repercussions for failing to comply, it emphasizes the power provider’s desperate call to action. The power provider indicates that the cooperation of cryptocurrency miners is vital to prevent possible power outages in the upcoming colder months.

    What measures has the government of Abkhazia implemented to tackle the problem of illicit cryptocurrency mining?

    Abkhazia’s local authorities have recently launched surprise inspections on industrial establishments and private residences to combat illicit cryptocurrency mining. This highlights the government’s wider endeavour to tackle the various issues arising from unauthorized mining operations in the area.

    Credit: https://img.freepik.com/free-photo/bitcoin-credit-card-pos-terminal_155003-9385.jpg

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