Cryptocurrency mining in Kazakhstan leading to energy shortage | Participatory

Crypto Currency Mining consumes huge amounts of energy, and that has led to a crisis in Kazakhstan. Financial Times Electricity grid operator Kegosi said the supply of electricity to 50 registered miners would begin after a power outage at three power plants in October. Also, if there are any grid failures, the first one will be discontinued, according to Quasi-People’s Company.

The Ministry of Energy’s demand for electricity will increase by eight percent in 2021, compared to one or two percent of normal. Power outages have been reported in six regions since October.

Officials and observers attribute the growing power outage to the growing number of unregistered crypto miners who illegally generate currency from their homes and even factories. The war on Chinese cryptocurrencies may be partly to blame. Energy demand began to rise when Chinese companies moved out of China in early 2021, and China jumped on the bandwagon again this afternoon when it banned mining. Electricity is relatively cheap in Kazakhstan, making it a safe haven for companies looking to make more profit than crypto operations.

Kazakhstan is trying to compensate for the lack of energy. Starting in 2022, for each kilowatt-hour, a Russian energy company will charge up to 1 ton ($ 0.0023) for registered miners who require an increase in the national grid. To turn miners backwards or to move equipment.

There are also concerns that the government is not trustworthy. University of Glasgow’s Luke Ancesi argues Times Kazakhstan has been threatening miners with serious problems with the country’s electricity grid. Whether that is true or not, it is safe to say that the mining industry will be a clear signal of the problems that will befall other countries if they start producing crypto.

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