Cryptocurrency mining in Kazakhstan is leading to power shortages

Cryptocurrency mining consumes a large amount of energy, and it encourages the crisis in Kazakhstan. The Financial Times reported the Kgoc State Electric Grid operator said it would begin to fall electricity for 50 registered miners after their request was reported to use emergency shutdown mode in three power plants in October. They will also be cut off first if there is a grid failure, the public-public company said.

The Ministry of Energy estimates that electricity demand has soared eight percent so far in 2021 versus more typical one or two percent. There are blackouts in six regions since October.

Officials and observers have pinned a power outage at the not registered Crypto miners’ climbing numbers producing currencies from their homes or even factories. The Chinese war against Cryptocurrency may be partially responsible. Energy demand began climbing when the mining company moved from China at the beginning of 2021, and it jumped again when China made this illegal mining. Electricity is relatively cheap in Kazakhstan, making it heaven for companies that hope to get a bigger profit than Crypto operations.

Kazakhstan tries to compensate for lack of power. It asks the Russian energy company to add national electricity networks, and it will impose a registered miner fee with the cost of compensation 1 Tenge (around $ 0.0023) for every kilowatt-hour starting 2022. But this effort will take the time, and this forces miners for scale back or move equipment.

There are also worries of government dishonest about the problem. The University of Glasgow Luca Anceshi believes that at the times of Kazakhstan is the Cekingo miner for reliability problems with the country’s electricity network. Whether it is true or not, safe to say instructions for mining demand to potential problems for other countries if their local crypto production takes off.

Kairi brown

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