Cryptocurrency mines in Kazakhstan are causing a shortage of electricity

Cryptocurrency mines consume a amount of energy, and this is causing problems in Kazakhstan. The Financial Times reports The country’s electricity utility KEGOC has begun distributing electricity to 50 miners after their demands led to a sudden shutdown of three power plants in October. They will also be the first to connect if there are grid failures, the quasi-public company said.

The Ministry of Energy reported that electricity demand has risen by 8 percent so far in 2021 compared to one or two per cent. There have been power outages in six areas since October.

Officials and regulators have banned the reduction of electricity bills on the rise of unregistered crypto miners who make money illegally in their homes or factories. China cha the fight against cryptocurrency may be responsible. Demand for electricity began to rise as mining companies withdrew from China in early 2021, and jumped again when China made mining illegal in May. Electricity has become very cheap in Kazakhstan, making it a platform for companies hoping to make huge profits from crypto services.

Kazakhstan is trying to recapture the power supply. It is asking a Russian power company to expand its global power grid, and it will pay registered subscribers 1 tenge (approximately $ 0.0023) per kilowatt hour from 2022. All these tests will take time, however, this is compelling. miners to reduce or relocate weapons.

There are also concerns that the government is not telling the truth about its problems. Luca Anceshi of the University of Glasgow protested The Times that Kazakhstan was scapegoating mining problems with the reliability of the national electricity grid. Whether this is true or not, it is safe to say that the importance of mining illustrates the potential problems in some countries if their crypto-production begins.