The cryptocurrency mining industry in Russia is undergoing a notable shift as more and more miners are turning their attention to Dogecoin (DOGE) and other alternative cryptocurrencies, instead of focusing solely on Bitcoin (BTC).

Is Dogecoin Taking Over?

According to a statement by MP Anton Gorelkin on Telegram and a report from RBC media outlet, about 8.4% of cryptocurrency miners in Russia are currently mining DOGE. Meanwhile, Bitcoin still has the highest share at 49.4%, but the concentration on BTC has decreased compared to previous years.

Litecoin (LTC) is now the second most popular coin with 11.1% of miners participating, followed by Dogecoin. This shows a significant shift in the mining strategy of Russian miners.

These figures were released at a meeting of the ROCIT blockchain technology committee, which was attended by many miners and government officials. However, this report contradicts data from Russian technology company MTS, which previously stated that BTC still accounts for 90% of the industry's mining capacity.

Why Miners Are Switching to DOGE and LTC

One of the main factors driving the rise of Dogecoin and Litecoin is the possibility of dual mining. Both DOGE and LTC use the Scrypt Proof-of-Work (PoW) algorithm, which allows miners to mine both cryptocurrencies at the same time on the same device through special software. This helps optimize profits and make the most of mining hardware.

The Russian Government and Efforts to Control the Mining Industry

In addition to the change in mining trends, Moscow is also stepping up its regulatory and taxation measures for this sector.

According to Gorelkin, from April this year, miners in Russia will have to submit their first tax returns to the Federal Tax Service (FTS). The Russian government estimates that tax revenue from cryptocurrency mining could reach 50 to 60 billion rubles ($586.9 million to $704.3 million) per year.

There are currently 98 mining infrastructure operators and 563 individual miners registered in the national register. However, the government may impose sanctions on miners who do not comply with the regulations.

Illegal Mining Continues to Grow

Despite the Russian government's efforts to control the mining industry, illegal mining continues to grow, especially in Siberia. According to the Irkutskenergosbyt power company, household electricity consumption in January 2025 increased by 1% compared to the same period last year, indicating that underground mining is still on the rise.

Meanwhile, Belarusian President Alexander Lukashenko has also ordered his government to step up the development of the cryptocurrency mining industry, indicating that the trend of this industry expanding is not only happening in Russia but also spreading to allied countries.

Conclusion

The shift to Dogecoin and Litecoin by Russian miners reflects a change in the cryptocurrency mining industry. While the government continues to seek to control and tax, illegal mining is still thriving. With these developments, the cryptocurrency market in Russia promises to have many fluctuations in the coming time.