Will Kazakhstan cut off electricity to Bitcoin (BTC) miners?

Kazakhstan’s miners soon to be limited in electricity?

As reported by the media NeftegazRU, Kazakhstan had distinguished itself in recent months by welcoming the Bitcoin mining industry, in search of a new haven following Chinese repressions. But the operator of the national electricity grid has sounded the alarm: the energy needs of miners are too high, and they can lead to blackouts.

According to data from the Cambridge Bitcoin Electricity Consumption Index, Kazakhstan only accounted for 4.5% of the global hashrate in August 2020. By August 2021, this share had risen to 18%. The majority of electricity (almost 90%) comes from fossil fuels in the country.

πŸ‘‰ On the same topic – Bitcoin (BTC): the majority of the hashrate now comes from the United States

Kazakhstan hesitant about Bitcoin

Does Kazakhstan regret its open mining policy? A year ago, the country announced an investment of $ 700 million for the industry. It worked: there are now said to be 250,000 mining machines in Kazakhstan. In total, the electricity consumed in the country increased by 7% compared to last year.

But it can lead to breakdowns. Hence a suggestion from the Minister of Energy, Magzum Mirzagaliyev. He would like to limit the electricity supply to 1 MW per mining farm, and 100 MW for the entire sector. This could therefore effectively slow down an industry which is in fact booming, and lead to a new exodus.

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About the author: Marine Debelloir

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Associate Editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.

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