Russian crypto miners are switching to ‘Dogecoin (DOGE) and other altcoins, with a decreasing focus on Bitcoin (BTC), according to Anton Gorelkin, a Russian lawmaker. Recent reports show that 8.4% of Russian miners are now mining DOGE, which is part of a broader trend of diversification in the industry.
But why and how does this fit with Russia’s changing crypto landscape, mining regulations and tax policies?
Russian Miners Going for Dogecoin
Anton Gorelkin, Deputy Head of the State Duma’s Committee on Information Policy, recently said that Dogecoin is gaining popularity among Russian miners. At a meeting of the ROCIT (Russian Public Organization for Internet Users’ Rights), the mining industry is shifting towards alternative cryptocurrencies.
The latest statistics from ROCIT show:
– 49.4% of miners still mine Bitcoin (BTC)
– 11.1% mine Litecoin (LTC)
– 8.4% mine Dogecoin (DOGE)
This is different from what Russian tech company MTS claimed, that Bitcoin mining accounts for 90% of Russia’s total industrial mining capacity. However, ROCIT’s data shows that more and more miners are going into altcoins.
Why are Russian crypto Miners Choosing Dogecoin?
Several reasons might be behind Russian crypto miners switching to Dogecoin and Litecoin over Bitcoin:
1. Dual Mining: According to RBC Russia, many miners are taking advantage of Dogecoin and Litecoin’s shared Scrypt Proof-of-Work (PoW) algorithm, which allows them to mine both coins at the same time.
RBC reported:
“Dual mining is possible with these coins [DOGE and LTC]. Both can be mined on the same device with special software.”
2. Cost: With the rising cost of Bitcoin mining equipment and increasing energy consumption, some miners see DOGE and LTC as cheaper options. Bitcoin mining requires high computational power so it’s not viable for small-scale mining.
3. Russian Crypto Regulations: The Russian government is tightening regulations on crypto mining with a new registry and taxes for miners. Some think miners are diversifying to navigate regulatory challenges and stay profitable.
4. Market Volatility & Speculation: Dogecoin’s status and ability to rise in price due to social media hype makes it an attractive speculative asset for miners looking for quick gains.
Contradictory Reports: How big is Dogecoin mining in Russia?
Despite these trends, some experts doubt ROCIT’s report.
Russian tech giant MTS previously said that Bitcoin still accounts for 90% of the Russian crypto mining industry, and only a small part is dedicated to Litecoin, Ethereum (ETH), and Kaspa (KAS).
MTS said:
“Most of Russia industrial mining facilities are still focused on Bitcoin, only a small part are mining altcoins like Litecoin, Kaspa (KAS) and Ethereum (ETH).”
So the question is: Is Dogecoin really gaining traction in Russia or it’s just small-scale miners? Industry insiders say small-scale miners are moving to DOGE, while larger industrial miners are still all in on Bitcoin.
Russia’s Mining Regulations & Taxation
Gorelkin also updated on Russia’s mining regulations, saying:
– National miners registry has been launched under Federal Tax Service (FTS)
– 563 individual miners and 98 mining infrastructure companies have signed up already
– Russia will generate 50-60 billion rubles ($586.9M-$704.3M) per year from crypto mining
But Gorelkin warned penalties may be introduced for miners who don’t register or comply with tax requirements.
He said:
“In April, Russian miners will have to submit their first tax declaration to the FTS. Budget revenues from mining activities were previously estimated at 50-60 billion rubles ($586.9M-$704.3M) per year. Let’s see how accurate were these forecasts.”
Crackdown on Illegal Mining
Despite Moscow’s regulatory push, illegal mining is still growing, especially in Siberia.
In February 2025, Irkutskenergosbyt, a Siberian ‘power company, reported that residential electricity consumption had increased by 1% compared to January 2024.
Officials believe many unregistered miners are using subsidized household electricity for mining.
To combat this, Russia is looking into stricter enforcement, including crackdowns on illegal mining in energy-rich regions.
What Does This Mean for Dogecoin?
1. More Scrypt-Based Cryptos: If more Russian crypto miners switch to Dogecoin and Litecoin, Scrypt-based cryptos will see more adoption and better mining infrastructure.
2. Regulatory Changes: With Dogecoin and Litecoin gaining traction, regulators will have to adjust tax laws and legal framework for a more diversified mining sector.
3. Market Impact: If Russia’s mining industry cashes in on Dogecoin, this will affect DOGE’s price and liquidity, leading to more price volatility.
4. Energy Policy: The rise of alternative mining will impact Russia’s energy policy, especially with illegal mining growing in energy-rich regions like Siberia.
Conclusion
The reported increase in Dogecoin mining among Russian crypto miners is a potential shift in priorities, but conflicting views from industry insiders leave room for doubt.
As Russia regulates crypto more tightly and pushes for tax compliance, miners will look for ways to stay competitive and avoid legal troubles.
Is this Dogecoin mining trend a temporary thing or a long term switch? Only time will tell. But Russia’s crypto landscape will continue to shape mining in the region.
Stay updated with Deythere as we’re available around the clock, providing you with updated information about the state of the crypto world.
FAQs
1. Why are Russian crypto miners switching to Dogecoin?
Russian crypto miners are mining Dogecoin because of its dual mining with Litecoin, lower energy consumption and speculative trading.
2. What percentage of Russian miners are mining Dogecoin?
According to ROCIT, 8.4% of Russian miners are mining Dogecoin, 11.1% are mining Litecoin and 49.4% are still mining Bitcoin.
3. How does Dogecoin mining work in Russia?
Dogecoin mining in Russia is done through Scrypt-based mining rigs which allows mining of DOGE and LTC at the same time. Some industrial miners prefer this way because of lower costs compared to Bitcoin mining.
4. What are Russia’s latest crypto mining regulations?
Russian government has introduced a national registry for miners, tax declarations and compliance with new laws. Authorities are also cracking down on illegal mining.
5. Can Dogecoin’s price be affected by Russian miners?
If Russian miners massively mine Dogecoin, it can affect DOGE’s price, liquidity and volatility.
Glossary
Scrypt Proof-of-Work (PoW) – Mining algorithm used for Dogecoin and Litecoin, allows dual mining.
Dual Mining – Mining two cryptocurrencies at the same time using the same mining hardware.
Federal Tax Service (FTS) – Russia’s tax authority for crypto mining regulations.
Industrial Mining – Large scale cryptocurrency mining using significant computing power.
Illegal Mining – Unregistered mining that evade government regulations and electricity tariffs.
References
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