Crypto Mining In Kazakhstan Is Leading To Power Shortages

If you want to get your hands on cryptocurrency, there are essentially a couple of ways. You can trade it, which means you buy it on an exchange or sell a product and accept cryptocurrency as a form of payment, or you can mine it. However, the problem with mining is that it consumes a lot of energy.

This means that if you are trying to do it yourself at home, it may not necessarily be more profitable. Indeed, to demonstrate how much energy crypto mining consumes, it appears that in Kazakhstan, the country is experiencing power shortages in which according to The Financial Times, cryptocurrency mining is partly to blame.

The publication reports that local power grid operator KEGOC said they will begin rationing electricity for the country’s 50 registered miners after their use allegedly involved an emergency shutdown mode at three power plants in October. According to the government, they estimated that electricity demand has risen 8% in 2021 so far, compared to the 1-2% they might normally see.

This has also caused blackouts in six regions since October. According to officials, it has been suggested that the surge in energy demand could be due to China’s crackdown on cryptocurrency, which forced mining companies to relocate their operations to other countries such as Kazakhstan, where electricity is relatively cheap.

Filed in general. Read more about Cryptocurrencies. Source: engadget

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