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.
👉 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
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.