Cryptocurrency mining consumes a large amount of energy, which has led to a major crisis in Kazakhstan right now. According to the report of the Financial Times, the country’s electricity grid operator KEGOC said that high demands caused cuts in 3 power plants in October, while it is stated that the energy of 50 crypto currency miners registered in the country may be limited for this reason.
According to the statement made by KEGOC, the increase in consumption, which is normally 1 or 2 percent throughout the year, has increased to the level of 8 percent this year. This causes the country’s energy needs to be met from time to time and cuts in some regions.
So, why has Kazakhstan’s energy consumption increased so much? It is thought that the decision taken by China in May is the effect behind this. China banned cryptocurrency mining in May. However, it is estimated that many cryptocurrency miners in the country carried their work to Kazakhstan. The fact that Kazakhstan’s energy cost is cheaper than China also seems to be in the interest of cryptocurrency miners.
While limiting the energy needs of crypto currency miners registered in the country is on the agenda, support is also sought from the Russian energy company to compensate for power cuts.
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