Wednesday, March 22, 2023

Kazakhstan’s Crypto Mining Is Causing Power Outages


For those interested in obtaining cryptocurrency, there are a handful of different options available to them. Alternatively, you may trade with it, which means you can purchase it on an exchange or offer a product that accepts cryptocurrency as a form of payment, or you can mine it. The problem with crypto mining, on the other hand, is that it is extremely energy hungry.

This means that attempting to do it yourself at home may not always be the most cost-effective solution. Indeed, as an illustration of how much electricity crypto mining consumes. It looks that the country of Kazakhstan is suffering power shortages, which, according to The Financial Times, have partly caused by crypto mining.

According to the journal, the country’s electrical grid operator, KEGOC, has announced that they will begin limiting electricity for the country’s 50 registered miners. And after their usage reportedly resulted in the emergency shutdown mode at three power plants in October. So far in 2021, the government estimates that electricity demand has increased by 8 percent. As compared to the 1-2 percent that they may expect in the normal course of events.

Since October, this has also resulted in blackouts in six other regions. The increase in demand for energy, according to officials, could attributed to China’s crackdown on cryptocurrency mining. Which has driven mining companies to relocate their operations to other countries such as Kazakhstan, where electricity is comparatively inexpensive.

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